HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - NYSE:HMN - US4403271046 - Common Stock
45.68 USD
-1.31 (-2.79%)
45.68 USD
0 (0%)
HMN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. While HMN seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on HMN. 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.
In the past 5 years HMN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HMN (0.95%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.30%, HMN is in line with its industry, outperforming 52.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 10.3% | ||
| 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 (8.51%) which is comparable to the rest of the industry.
HMN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.61%, HMN perfoms like the industry average, outperforming 57.53% 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 | 12.61% | ||
| PM (TTM) | 8.51% | ||
| 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.
HMN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for HMN has been reduced compared to 5 years ago.
HMN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HMN is 0.90, which is an excellent value as it means it would take HMN, only 0.90 years of fcf income to pay off all of its debts.
HMN has a Debt to FCF ratio of 0.90. This is in the better half of the industry: HMN outperforms 71.92% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that HMN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, HMN is doing worse than 62.33% of the companies in the same industry.
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 | 0.4 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.86%
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 117.31%, which is quite impressive.
Measured over the past 5 years, HMN shows a small growth in Earnings Per Share. The EPS has been growing by 7.81% on average per year.
The Revenue has been growing slightly by 5.76% 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)117.31%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%430%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%5.75%
3.2 Future
Based on estimates for the next years, HMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.17% on average per year.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y38.55%
EPS Next 2Y20.41%
EPS Next 3Y17.17%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y5.96%
Revenue Next 3Y5.29%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 reasonably with a Price/Earnings ratio of 10.11.
Compared to the rest of the industry, the Price/Earnings ratio of HMN indicates a somewhat cheap valuation: HMN is cheaper than 65.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HMN to the average of the S&P500 Index (27.20), we can say HMN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.88, the valuation of HMN can be described as very reasonable.
HMN's Price/Forward Earnings ratio is in line with the industry average.
HMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HMN is on the same level as its industry peers.
82.19% of the companies in the same industry are more expensive than HMN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.05 | ||
| EV/EBITDA | 10.09 |
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.
HMN's earnings are expected to grow with 17.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)1.29
EPS Next 2Y20.41%
EPS Next 3Y17.17%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 2.94%.
Compared to an average industry Dividend Yield of 3.43, HMN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, HMN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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 Years15
Div Non Decr Years15
5.3 Sustainability
40.19% of the earnings are spent on dividend by HMN. 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.
DP40.19%
EPS Next 2Y20.41%
EPS Next 3Y17.17%
45.68
-1.31 (-2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners105.67%
Inst Owner Change-8%
Ins Owners1.27%
Ins Owner Change-2.14%
Market Cap1.86B
Analysts73.33
Price Target49.98 (9.41%)
Short Float %1.49%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend1.36
Dividend Growth(5Y)3.32%
DP40.19%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.65%
Min EPS beat(2)9.22%
Max EPS beat(2)76.09%
EPS beat(4)4
Avg EPS beat(4)36.92%
Min EPS beat(4)4.57%
Max EPS beat(4)76.09%
EPS beat(8)7
Avg EPS beat(8)19.7%
EPS beat(12)9
Avg EPS beat(12)14.81%
EPS beat(16)12
Avg EPS beat(16)18.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-4.02%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-4.02%
Max Revenue beat(4)-1.87%
Revenue beat(8)1
Avg Revenue beat(8)-2.3%
Revenue beat(12)1
Avg Revenue beat(12)-2.53%
Revenue beat(16)2
Avg Revenue beat(16)-2.21%
PT rev (1m)3.52%
PT rev (3m)5.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)9.89%
EPS NY rev (3m)11.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.88 | ||
| P/S | 1.13 | ||
| P/FCF | 3.05 | ||
| P/OCF | 3.05 | ||
| P/B | 1.37 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 10.09 |
EPS(TTM)4.52
EY9.89%
EPS(NY)4.62
Fwd EY10.12%
FCF(TTM)14.98
FCFY32.78%
OCF(TTM)14.98
OCFY32.78%
SpS40.47
BVpS33.42
TBVpS28.44
PEG (NY)0.26
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 10.3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 12.61% | ||
| PM (TTM) | 8.51% | ||
| GM | N/A | ||
| FCFM | 37% |
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 | 0.4 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.18 | ||
| Cash Conversion | 259.69% | ||
| Profit Quality | 435.05% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC7.86%
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)117.31%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%430%
EPS Next Y38.55%
EPS Next 2Y20.41%
EPS Next 3Y17.17%
EPS Next 5YN/A
Revenue 1Y (TTM)5.76%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%5.75%
Revenue Next Year5.68%
Revenue Next 2Y5.96%
Revenue Next 3Y5.29%
Revenue Next 5YN/A
EBIT growth 1Y60.63%
EBIT growth 3Y-7.88%
EBIT growth 5Y-11.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y148.37%
FCF growth 3Y30.19%
FCF growth 5Y28.79%
OCF growth 1Y148.37%
OCF growth 3Y30.19%
OCF growth 5Y28.79%