HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HMN - US4403271046 - Common Stock
44.38 USD
+0.3 (+0.68%)
44.38 USD
0 (0%)
Overall HMN gets a fundamental rating of 4 out of 10. We evaluated HMN against 147 industry peers in the Insurance industry. HMN has a bad profitability rating. Also its financial health evaluation is rather negative. HMN may be a bit undervalued, certainly considering the very reasonable score on growth 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.
Each year in the past 5 years HMN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.06%, HMN is doing worse than 63.95% of the companies in the same industry.
HMN has a Return On Equity of 11.39%. This is comparable to the rest of the industry: HMN outperforms 51.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 11.39% | ||
| 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's Profit Margin of 9.79% is fine compared to the rest of the industry. HMN outperforms 60.54% of its industry peers.
In the last couple of years the Profit Margin of HMN has declined.
HMN has a Operating Margin of 14.25%. This is in the better half of the industry: HMN outperforms 60.54% of its industry peers.
HMN's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.25% | ||
| PM (TTM) | 9.79% | ||
| 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.
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
The Debt to FCF ratio of HMN is 1.37, which is an excellent value as it means it would take HMN, only 1.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.37, HMN is doing good in the industry, outperforming 61.22% of the companies in the same industry.
HMN has a Debt/Equity ratio of 0.58. This is a neutral value indicating HMN is somewhat dependend on debt financing.
The Debt to Equity ratio of HMN (0.58) is worse than 76.19% of its industry peers.
Even though the debt/equity ratio score it not favorable for HMN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.93%
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 113.33% 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.
Looking at the last year, HMN shows a small growth in Revenue. The Revenue has grown by 5.66% in the last year.
HMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.09% yearly.
EPS 1Y (TTM)113.33%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.95%
Revenue 1Y (TTM)5.66%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.58%
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 18.83% on average per year.
Based on estimates for the next years, HMN will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y48.08%
EPS Next 2Y21.67%
EPS Next 3Y18.83%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y6.14%
Revenue Next 3Y5.1%
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
With a Price/Earnings ratio of 8.67, the valuation of HMN can be described as very reasonable.
HMN's Price/Earnings ratio is a bit cheaper when compared to the industry. HMN is cheaper than 69.39% of the companies in the same industry.
HMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
Based on the Price/Forward Earnings ratio of 9.40, the valuation of HMN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMN is on the same level as its industry peers.
HMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
HMN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMN indicates a rather cheap valuation: HMN is cheaper than 82.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.93 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The 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 18.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)1.11
EPS Next 2Y21.67%
EPS Next 3Y18.83%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
HMN's Dividend Yield is a higher than the industry average which is at 3.48.
Compared to an average S&P500 Dividend Yield of 2.31, HMN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.32%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
34.55% of the earnings are spent on dividend by HMN. This is a low number and sustainable payout ratio.
HMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.55%
EPS Next 2Y21.67%
EPS Next 3Y18.83%
44.38
+0.3 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.11%
Inst Owner Change6.18%
Ins Owners1.22%
Ins Owner Change-2.25%
Market Cap1.81B
Revenue(TTM)1.68B
Net Income(TTM)164.10M
Analysts75
Price Target49.98 (12.62%)
Short Float %1.29%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend1.36
Dividend Growth(5Y)3.32%
DP34.55%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.55%
Min EPS beat(2)21.01%
Max EPS beat(2)76.09%
EPS beat(4)4
Avg EPS beat(4)41.03%
Min EPS beat(4)9.22%
Max EPS beat(4)76.09%
EPS beat(8)7
Avg EPS beat(8)22.08%
EPS beat(12)10
Avg EPS beat(12)17.54%
EPS beat(16)12
Avg EPS beat(16)17.9%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-4.02%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-4.02%
Max Revenue beat(4)0.81%
Revenue beat(8)2
Avg Revenue beat(8)-1.91%
Revenue beat(12)2
Avg Revenue beat(12)-2.25%
Revenue beat(16)2
Avg Revenue beat(16)-2.17%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-10.02%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)4.08%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 9.4 | ||
| P/S | 1.08 | ||
| P/FCF | 2.93 | ||
| P/OCF | 2.93 | ||
| P/B | 1.25 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 9.73 |
EPS(TTM)5.12
EY11.54%
EPS(NY)4.72
Fwd EY10.64%
FCF(TTM)15.16
FCFY34.16%
OCF(TTM)15.16
OCFY34.16%
SpS41.19
BVpS35.43
TBVpS30.53
PEG (NY)0.18
PEG (5Y)1.11
Graham Number63.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 11.39% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.25% | ||
| PM (TTM) | 9.79% | ||
| GM | N/A | ||
| FCFM | 36.81% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.58 | ||
| Cash Conversion | 231.79% | ||
| Profit Quality | 375.87% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.93%
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)113.33%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.95%
EPS Next Y48.08%
EPS Next 2Y21.67%
EPS Next 3Y18.83%
EPS Next 5YN/A
Revenue 1Y (TTM)5.66%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.58%
Revenue Next Year5.68%
Revenue Next 2Y6.14%
Revenue Next 3Y5.1%
Revenue Next 5YN/A
EBIT growth 1Y54.5%
EBIT growth 3Y-7.88%
EBIT growth 5Y-11.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y141.98%
FCF growth 3Y30.19%
FCF growth 5Y28.79%
OCF growth 1Y141.98%
OCF growth 3Y30.19%
OCF growth 5Y28.79%
HORACE MANN EDUCATORS / HMN FAQ
What is the ChartMill fundamental rating of HORACE MANN EDUCATORS (HMN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HMN.
Can you provide the valuation status for HORACE MANN EDUCATORS?
ChartMill assigns a valuation rating of 7 / 10 to HORACE MANN EDUCATORS (HMN). This can be considered as Undervalued.
What is the profitability of HMN stock?
HORACE MANN EDUCATORS (HMN) has a profitability rating of 3 / 10.
What are the PE and PB ratios of HORACE MANN EDUCATORS (HMN) stock?
The Price/Earnings (PE) ratio for HORACE MANN EDUCATORS (HMN) is 8.67 and the Price/Book (PB) ratio is 1.25.
What is the financial health of HORACE MANN EDUCATORS (HMN) stock?
The financial health rating of HORACE MANN EDUCATORS (HMN) is 3 / 10.