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HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis

NYSE:HMN - New York Stock Exchange, Inc. - US4403271046 - Common Stock - Currency: USD

39.79  -0.74 (-1.83%)

After market: 39.79 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to HMN. HMN was compared to 143 industry peers in the Insurance industry. Both the profitability and financial health of HMN have multiple concerns. HMN has a correct valuation and a medium growth rate. HMN also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

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.
In multiple years HMN reported negative net income over the last 5 years.
HMN had a positive operating cash flow in 4 of the past 5 years.
HMN Yearly Net Income VS EBIT VS OCF VS FCFHMN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

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 65.96% of its industry peers.
HMN's Return On Equity of 8.09% is on the low side compared to the rest of the industry. HMN is outperformed by 60.99% of its industry peers.
Industry RankSector Rank
ROA 0.71%
ROE 8.09%
ROIC N/A
ROA(3y)0.43%
ROA(5y)0.75%
ROE(3y)3.83%
ROE(5y)6.14%
ROIC(3y)N/A
ROIC(5y)N/A
HMN Yearly ROA, ROE, ROICHMN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 4 6 8 10

1.3 Margins

Looking at the Profit Margin, with a value of 6.56%, HMN is in line with its industry, outperforming 48.94% of the companies in the same industry.
In the last couple of years the Profit Margin of HMN has grown nicely.
HMN has a Operating Margin (9.74%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HMN has grown nicely.
Industry RankSector Rank
OM 9.74%
PM (TTM) 6.56%
GM N/A
OM growth 3Y-27.48%
OM growth 5Y14.09%
PM growth 3Y-33.23%
PM growth 5Y14.48%
GM growth 3YN/A
GM growth 5YN/A
HMN Yearly Profit, Operating, Gross MarginsHMN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

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3

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
HMN Yearly Shares OutstandingHMN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
HMN Yearly Total Debt VS Total AssetsHMN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

2.2 Solvency

HMN has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
HMN's Debt to FCF ratio of 1.51 is in line compared to the rest of the industry. HMN outperforms 55.32% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that HMN is not too dependend on debt financing.
The Debt to Equity ratio of HMN (0.42) is worse than 61.70% 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 RankSector Rank
Debt/Equity 0.42
Debt/FCF 1.51
Altman-Z N/A
ROIC/WACCN/A
WACC8.04%
HMN Yearly LT Debt VS Equity VS FCFHMN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HMN Yearly Current Assets VS Current LiabilitesHMN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 5M 10M 15M

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4

3. Growth

3.1 Past

HMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.14%, which is quite impressive.
The Earnings Per Share has been growing slightly by 7.81% on average over the past years.
EPS 1Y (TTM)107.14%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%94.05%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.51%

3.2 Future

The Earnings Per Share is expected to grow by 15.54% on average over the next years. This is quite good.
Based on estimates for the next years, HMN will show a small growth in Revenue. The Revenue will grow by 6.89% on average per year.
EPS Next Y20.82%
EPS Next 2Y15.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.77%
Revenue Next 2Y6.89%
Revenue Next 3YN/A
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.
HMN Yearly Revenue VS EstimatesHMN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
HMN Yearly EPS VS EstimatesHMN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.47 indicates a correct valuation of HMN.
The rest of the industry has a similar Price/Earnings ratio as HMN.
HMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 10.32, 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 22.68.
Industry RankSector Rank
PE 12.47
Fwd PE 10.32
HMN Price Earnings VS Forward Price EarningsHMN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
HMN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HMN is cheaper than 73.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.49
EV/EBITDA 11.96
HMN Per share dataHMN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 15.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)1.6
EPS Next 2Y15.54%
EPS Next 3YN/A

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7

5. Dividend

5.1 Amount

HMN has a Yearly Dividend Yield of 3.36%.
Compared to an average industry Dividend Yield of 3.09, HMN pays a bit more dividend than its industry peers.
HMN's Dividend Yield is a higher than the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 3.36%

5.2 History

The dividend of HMN has a limited annual growth rate of 2.95%.
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)2.95%
Div Incr Years14
Div Non Decr Years14
HMN Yearly Dividends per shareHMN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

HMN pays out 53.03% 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.
DP53.03%
EPS Next 2Y15.54%
EPS Next 3YN/A
HMN Yearly Income VS Free CF VS DividendHMN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M
HMN Dividend Payout.HMN Dividend Payout, showing the Payout Ratio.HMN Dividend Payout.PayoutRetained Earnings

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HORACE MANN EDUCATORS

NYSE:HMN (2/21/2025, 8:25:47 PM)

After market: 39.79 0 (0%)

39.79

-0.74 (-1.83%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-05 2025-02-05/amc
Earnings (Next)05-06 2025-05-06/amc
Inst Owners107.03%
Inst Owner Change2.64%
Ins Owners1.4%
Ins Owner Change-2.63%
Market Cap1.62B
Analysts73.33
Price Target45.9 (15.36%)
Short Float %2.23%
Short Ratio4.58
Dividend
Industry RankSector Rank
Dividend Yield 3.36%
Yearly Dividend1.32
Dividend Growth(5Y)2.95%
DP53.03%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.73%
Min EPS beat(2)4.57%
Max EPS beat(2)4.88%
EPS beat(4)3
Avg EPS beat(4)3.12%
Min EPS beat(4)-23.76%
Max EPS beat(4)26.78%
EPS beat(8)6
Avg EPS beat(8)5.8%
EPS beat(12)8
Avg EPS beat(12)10.19%
EPS beat(16)12
Avg EPS beat(16)13.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)1.42%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)1
Avg Revenue beat(12)-2.21%
Revenue beat(16)4
Avg Revenue beat(16)-1.17%
PT rev (1m)0%
PT rev (3m)12.82%
EPS NQ rev (1m)-3.53%
EPS NQ rev (3m)-3%
EPS NY rev (1m)0.21%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 12.47
Fwd PE 10.32
P/S 1.02
P/FCF 4.49
P/OCF 4.49
P/B 1.26
P/tB 1.51
EV/EBITDA 11.96
EPS(TTM)3.19
EY8.02%
EPS(NY)3.85
Fwd EY9.69%
FCF(TTM)8.87
FCFY22.29%
OCF(TTM)8.87
OCFY22.29%
SpS38.91
BVpS31.58
TBVpS26.33
PEG (NY)0.6
PEG (5Y)1.6
Profitability
Industry RankSector Rank
ROA 0.71%
ROE 8.09%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 9.74%
PM (TTM) 6.56%
GM N/A
FCFM 22.8%
ROA(3y)0.43%
ROA(5y)0.75%
ROE(3y)3.83%
ROE(5y)6.14%
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-27.48%
OM growth 5Y14.09%
PM growth 3Y-33.23%
PM growth 5Y14.48%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 1.51
Debt/EBITDA 3.03
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 4.19
Cash Conversion 200.17%
Profit Quality 347.26%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score9
WACC8.04%
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 Y20.82%
EPS Next 2Y15.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.51%
Revenue Next Year7.77%
Revenue Next 2Y6.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y798.26%
EBIT growth 3Y-24.38%
EBIT growth 5Y19.31%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y153.51%
FCF growth 3Y5.16%
FCF growth 5Y8.5%
OCF growth 1Y153.51%
OCF growth 3Y5.16%
OCF growth 5Y8.5%