HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - NYSE:HMN - US4403271046 - Common Stock
45.84 USD
-0.49 (-1.06%)
45.841 USD
0 (0%)
Taking everything into account, HMN scores 5 out of 10 in our fundamental rating. HMN was compared to 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. 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.
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
HMN has a Return On Assets (0.95%) which is comparable to the rest of the industry.
HMN has a Return On Equity of 10.30%. This is comparable to the rest of the industry: HMN outperforms 52.05% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 8.51%, HMN is in line with its industry, outperforming 56.16% of the companies in the same industry.
HMN's Profit Margin has declined in the last couple of years.
HMN has a Operating Margin (12.61%) which is in line with its industry peers.
HMN's Operating Margin has declined in the last couple of years.
| 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
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.
The Debt to FCF ratio of HMN (0.90) is better than 71.92% 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 62.33% 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
WACC7.93%
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.
The Earnings Per Share has been growing slightly by 7.81% on average over the past years.
Looking at the last year, HMN shows a small growth in Revenue. The Revenue has grown by 5.76% 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)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.
Based on estimates for the next years, HMN will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
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
A Price/Earnings ratio of 10.14 indicates a reasonable valuation of HMN.
HMN's Price/Earnings ratio is a bit cheaper when compared to the industry. HMN is cheaper than 65.07% of the companies in the same industry.
HMN is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.91, the valuation of HMN can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as HMN.
HMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 9.91 |
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 rather cheap valuation: HMN is cheaper than 82.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.06 | ||
| EV/EBITDA | 10.2 |
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 17.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)1.3
EPS Next 2Y20.41%
EPS Next 3Y17.17%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 2.94%.
HMN's Dividend Yield is a higher than the industry average which is at 3.43.
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 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
HMN pays out 40.19% 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.
DP40.19%
EPS Next 2Y20.41%
EPS Next 3Y17.17%
45.84
-0.49 (-1.06%)
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 Cap1.87B
Analysts73.33
Price Target49.98 (9.03%)
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 | 10.14 | ||
| Fwd PE | 9.91 | ||
| P/S | 1.13 | ||
| P/FCF | 3.06 | ||
| P/OCF | 3.06 | ||
| P/B | 1.37 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)4.52
EY9.86%
EPS(NY)4.62
Fwd EY10.09%
FCF(TTM)14.98
FCFY32.67%
OCF(TTM)14.98
OCFY32.67%
SpS40.47
BVpS33.42
TBVpS28.44
PEG (NY)0.26
PEG (5Y)1.3
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
WACC7.93%
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)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%