HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
NYSE:HMN - US4403271046 - Common Stock
45.435 USD
-0.53 (-1.16%)
Taking everything into account, HMN scores 5 out of 10 in our fundamental rating. HMN was compared to 143 industry peers in the Insurance industry. The financial health of HMN is average, but there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on HMN. Finally HMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HMN was profitable.
HMN had a positive operating cash flow in the past year.
Of the past 5 years HMN 4 years were profitable.
Each year in the past 5 years HMN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HMN (0.95%) is comparable to the rest of the industry.
With a Return On Equity value of 10.30%, HMN perfoms like the industry average, outperforming 51.75% 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
With a Profit Margin value of 8.51%, HMN perfoms like the industry average, outperforming 56.64% of the companies in the same industry.
HMN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.61%, HMN is in line with its industry, outperforming 58.74% 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.
HMN has less shares outstanding than it did 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 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of 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 71.33% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that HMN is not too dependend on debt financing.
HMN has a Debt to Equity ratio of 0.40. This is in the lower half of the industry: HMN underperforms 61.54% 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 | 0.4 | ||
| Debt/FCF | 0.9 | ||
| 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 117.31% over the past year.
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.
The Revenue has been growing slightly by 2.09% on average over the past years.
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.
HMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
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
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
The Price/Earnings ratio is 10.05, which indicates a very decent valuation of HMN.
Compared to the rest of the industry, the Price/Earnings ratio of HMN indicates a somewhat cheap valuation: HMN is cheaper than 64.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, HMN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.82, which indicates a very decent valuation of HMN.
The rest of the industry has a similar Price/Forward Earnings ratio as HMN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, HMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HMN.
Based on the Price/Free Cash Flow ratio, HMN is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.03 | ||
| EV/EBITDA | 10.14 |
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.
A more expensive valuation may be justified as HMN's earnings are expected to grow with 17.17% in the coming years.
PEG (NY)0.26
PEG (5Y)1.29
EPS Next 2Y20.41%
EPS Next 3Y17.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, HMN has a reasonable but not impressive dividend return.
HMN's Dividend Yield is a higher than the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.34, HMN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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.
HMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.19%
EPS Next 2Y20.41%
EPS Next 3Y17.17%
NYSE:HMN (8/25/2025, 11:33:05 AM)
45.435
-0.53 (-1.16%)
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 Change3.38%
Market Cap1.85B
Analysts75.56
Price Target49.98 (10%)
Short Float %1.51%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)4.26%
PT rev (3m)8.89%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)9.89%
EPS NY rev (3m)11.68%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 9.82 | ||
| P/S | 1.12 | ||
| P/FCF | 3.03 | ||
| P/OCF | 3.03 | ||
| P/B | 1.36 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)4.52
EY9.95%
EPS(NY)4.62
Fwd EY10.18%
FCF(TTM)14.98
FCFY32.96%
OCF(TTM)14.98
OCFY32.96%
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
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)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%