HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
NYSE:HMN - New York Stock Exchange, Inc. - US4403271046 - Common Stock - Currency: USD
Overall HMN gets a fundamental rating of 4 out of 10. We evaluated HMN against 143 industry peers in the Insurance industry. HMN may be in some trouble as it scores bad on both profitability and health. HMN has a decent growth rate and is not valued too expensively. HMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HMN was profitable.
In the past year HMN had a positive cash flow from operations.
Of the past 5 years HMN 4 years were profitable.
HMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HMN (0.71%) is worse than 67.13% of its industry peers.
Looking at the Return On Equity, with a value of 7.98%, HMN is in line with its industry, outperforming 47.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 7.98% | ||
| ROIC | N/A |
ROA(3y)0.34%
ROA(5y)0.6%
ROE(3y)3.86%
ROE(5y)5.39%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 6.47%, HMN perfoms like the industry average, outperforming 49.65% of the companies in the same industry.
HMN's Profit Margin has declined in the last couple of years.
The Operating Margin of HMN (9.80%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.8% | ||
| PM (TTM) | 6.47% | ||
| GM | N/A |
OM growth 3Y-12.94%
OM growth 5Y-12.98%
PM growth 3Y-15.29%
PM growth 5Y-12.85%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HMN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HMN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, HMN has less shares outstanding
Compared to 1 year ago, HMN has an improved debt to assets ratio.
2.2 Solvency
HMN has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
HMN's Debt to FCF ratio of 1.21 is in line compared to the rest of the industry. HMN outperforms 57.34% of its industry peers.
HMN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HMN (0.42) is worse than 60.84% of its industry peers.
Although HMN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.05%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.62%, which is quite impressive.
HMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
The Revenue has been growing slightly by 6.42% in the past year.
Measured over the past years, HMN shows a small growth in Revenue. The Revenue has been growing by 2.09% on average per year.
EPS 1Y (TTM)91.62%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.33%
Revenue 1Y (TTM)6.42%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.88%
3.2 Future
The Earnings Per Share is expected to grow by 11.85% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y19.92%
EPS Next 2Y15.69%
EPS Next 3Y11.85%
EPS Next 5YN/A
Revenue Next Year6.11%
Revenue Next 2Y5.99%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.47, which indicates a very decent valuation of HMN.
60.84% of the companies in the same industry are more expensive than HMN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.21, HMN is valued rather cheaply.
A Price/Forward Earnings ratio of 9.83 indicates a reasonable valuation of HMN.
The rest of the industry has a similar Price/Forward Earnings ratio as HMN.
HMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HMN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMN indicates a somewhat cheap valuation: HMN is cheaper than 79.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.8 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
HMN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.58
PEG (5Y)1.47
EPS Next 2Y15.69%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 3.34%.
HMN's Dividend Yield is a higher than the industry average which is at 3.21.
HMN's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of HMN has a limited annual growth rate of 3.32%.
HMN has paid a dividend for at least 10 years, which is a reliable track record.
HMN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.32%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
HMN pays out 53.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.99%
EPS Next 2Y15.69%
EPS Next 3Y11.85%
41.97
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners107.03%
Inst Owner Change-0.87%
Ins Owners1.4%
Ins Owner Change3.2%
Market Cap1.72B
Analysts75
Price Target45.9 (9.36%)
Short Float %1.77%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend1.36
Dividend Growth(5Y)3.32%
DP53.99%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.19%
Min EPS beat(2)4.57%
Max EPS beat(2)57.82%
EPS beat(4)3
Avg EPS beat(4)10.88%
Min EPS beat(4)-23.76%
Max EPS beat(4)57.82%
EPS beat(8)7
Avg EPS beat(8)13.97%
EPS beat(12)8
Avg EPS beat(12)12.67%
EPS beat(16)12
Avg EPS beat(16)15.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)-1.92%
Revenue beat(8)1
Avg Revenue beat(8)-2.61%
Revenue beat(12)1
Avg Revenue beat(12)-2.44%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)0%
PT rev (3m)2.27%
EPS NQ rev (1m)-3.96%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 9.83 | ||
| P/S | 1.08 | ||
| P/FCF | 3.8 | ||
| P/OCF | 3.8 | ||
| P/B | 1.33 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)3.66
EY8.72%
EPS(NY)4.27
Fwd EY10.17%
FCF(TTM)11.04
FCFY26.31%
OCF(TTM)11.04
OCFY26.31%
SpS38.81
BVpS31.44
TBVpS26.31
PEG (NY)0.58
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 7.98% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 9.8% | ||
| PM (TTM) | 6.47% | ||
| GM | N/A | ||
| FCFM | 28.44% |
ROA(3y)0.34%
ROA(5y)0.6%
ROE(3y)3.86%
ROE(5y)5.39%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-12.94%
OM growth 5Y-12.98%
PM growth 3Y-15.29%
PM growth 5Y-12.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 4.65 | ||
| Cash Conversion | 248.27% | ||
| Profit Quality | 439.79% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.05%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.62%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.33%
EPS Next Y19.92%
EPS Next 2Y15.69%
EPS Next 3Y11.85%
EPS Next 5YN/A
Revenue 1Y (TTM)6.42%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.88%
Revenue Next Year6.11%
Revenue Next 2Y5.99%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
EBIT growth 1Y77.94%
EBIT growth 3Y-7.88%
EBIT growth 5Y-11.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y49.65%
FCF growth 3Y30.19%
FCF growth 5Y28.79%
OCF growth 1Y49.65%
OCF growth 3Y30.19%
OCF growth 5Y28.79%