HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
NYSE:HMN - New York Stock Exchange, Inc. - US4403271046 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HMN. HMN was compared to 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. Finally HMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HMN had positive earnings in the past year.
In the past year HMN had a positive cash flow from operations.
HMN had positive earnings in 4 of the past 5 years.
HMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HMN's Return On Assets of 0.71% is on the low side compared to the rest of the industry. HMN is outperformed by 67.83% of its industry peers.
HMN's Return On Equity of 7.98% is in line compared to the rest of the industry. HMN outperforms 44.06% of its industry peers.
| 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
HMN has a Profit Margin (6.47%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HMN has declined.
With a Operating Margin value of 9.80%, HMN perfoms like the industry average, outperforming 48.95% of the companies in the same 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.
Compared to 1 year ago, HMN has about the same amount of shares outstanding.
The number of shares outstanding for HMN has been reduced compared to 5 years ago.
The debt/assets ratio for HMN has been reduced compared to a year ago.
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.
With a Debt to FCF ratio value of 1.21, HMN perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
HMN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
HMN has a worse Debt to Equity ratio (0.42) 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
WACC8.03%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.14% over the past year.
HMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
HMN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.02%.
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)107.14%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%94.05%
Revenue 1Y (TTM)6.02%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%1.51%
3.2 Future
HMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.85% yearly.
Based on estimates for the next years, HMN will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
EPS Next Y19.92%
EPS Next 2Y15.69%
EPS Next 3Y11.85%
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y7.06%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HMN is valuated correctly with a Price/Earnings ratio of 13.08.
Compared to the rest of the industry, the Price/Earnings ratio of HMN is on the same level as its industry peers.
HMN is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.91, the valuation of HMN can be described as very reasonable.
HMN's Price/Forward Earnings ratio is in line with the industry average.
HMN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
HMN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMN indicates a somewhat cheap valuation: HMN is cheaper than 77.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.78 | ||
| EV/EBITDA | 12.32 |
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)0.66
PEG (5Y)1.67
EPS Next 2Y15.69%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 3.38%.
HMN's Dividend Yield is a higher than the industry average which is at 3.24.
HMN's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of HMN has a limited annual growth rate of 3.32%.
HMN has been paying a dividend for at least 10 years, so it has 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.
HMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.99%
EPS Next 2Y15.69%
EPS Next 3Y11.85%
NYSE:HMN (5/6/2025, 12:45:13 PM)
41.74
-0.48 (-1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners107.03%
Inst Owner Change-0.06%
Ins Owners1.4%
Ins Owner Change3.08%
Market Cap1.71B
Analysts75
Price Target45.9 (9.97%)
Short Float %1.77%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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)-4.34%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 10.91 | ||
| P/S | 1.08 | ||
| P/FCF | 3.78 | ||
| P/OCF | 3.78 | ||
| P/B | 1.33 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)3.19
EY7.64%
EPS(NY)3.83
Fwd EY9.16%
FCF(TTM)11.04
FCFY26.45%
OCF(TTM)11.04
OCFY26.45%
SpS38.81
BVpS31.44
TBVpS26.31
PEG (NY)0.66
PEG (5Y)1.67
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
WACC8.03%
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)107.14%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%94.05%
EPS Next Y19.92%
EPS Next 2Y15.69%
EPS Next 3Y11.85%
EPS Next 5YN/A
Revenue 1Y (TTM)6.02%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%1.51%
Revenue Next Year7.46%
Revenue Next 2Y7.06%
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%