HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - NYSE:HMN - US4403271046 - Common Stock
45.34 USD
+0.05 (+0.11%)
45.34 USD
0 (0%)
Overall HMN gets a fundamental rating of 5 out of 10. We evaluated HMN against 146 industry peers in the Insurance industry. While HMN seems to be doing ok healthwise, there are quite some concerns on its profitability. HMN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
HMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.95%, HMN is doing worse than 60.27% of the companies in the same industry.
HMN has a Return On Equity (10.30%) which is comparable to the rest of the 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's Profit Margin of 8.51% is in line compared to the rest of the industry. HMN outperforms 54.11% of its industry peers.
In the last couple of years the Profit Margin of HMN has declined.
Looking at the Operating Margin, with a value of 12.61%, HMN is in line with its industry, outperforming 54.79% of the companies in the same industry.
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.
The number of shares outstanding for HMN remains at a similar level compared to 1 year ago.
The number of shares outstanding for HMN has been reduced compared to 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.
HMN has a Debt to FCF ratio of 0.90. This is in the better half of the industry: HMN outperforms 73.29% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that HMN is not too dependend on debt financing.
The Debt to Equity ratio of HMN (0.40) is worse than 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
WACC7.9%
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.
The Revenue has been growing slightly by 6.42% in the past year.
The Revenue has been growing slightly by 2.09% on average over the past years.
EPS 1Y (TTM)113.33%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.95%
Revenue 1Y (TTM)6.42%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.58%
3.2 Future
HMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.78% yearly.
Based on estimates for the next years, HMN will show a small growth in Revenue. The Revenue will grow by 5.44% on average per year.
EPS Next Y42.27%
EPS Next 2Y21.26%
EPS Next 3Y17.78%
EPS Next 5YN/A
Revenue Next Year5.98%
Revenue Next 2Y6.14%
Revenue Next 3Y5.44%
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
HMN is valuated reasonably with a Price/Earnings ratio of 8.86.
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.
The average S&P500 Price/Earnings ratio is at 25.83. HMN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.67 indicates a reasonable valuation of HMN.
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 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
HMN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HMN is valued cheaper than 82.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.03 | ||
| EV/EBITDA | 10.02 |
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 17.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)1.13
EPS Next 2Y21.26%
EPS Next 3Y17.78%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 2.99%.
Compared to an average industry Dividend Yield of 3.33, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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
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 2Y21.26%
EPS Next 3Y17.78%
45.34
+0.05 (+0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.46%
Inst Owner Change-0.13%
Ins Owners1.24%
Ins Owner Change-1.36%
Market Cap1.85B
Revenue(TTM)1.59B
Net Income(TTM)140.10M
Analysts75
Price Target49.98 (10.23%)
Short Float %1.36%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)0%
PT rev (3m)4.26%
EPS NQ rev (1m)12.6%
EPS NQ rev (3m)7.3%
EPS NY rev (1m)1.71%
EPS NY rev (3m)12.84%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 9.67 | ||
| P/S | 1.12 | ||
| P/FCF | 3.03 | ||
| P/OCF | 3.03 | ||
| P/B | 1.36 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)5.12
EY11.29%
EPS(NY)4.69
Fwd EY10.35%
FCF(TTM)14.98
FCFY33.03%
OCF(TTM)14.98
OCFY33.03%
SpS40.47
BVpS33.42
TBVpS28.44
PEG (NY)0.21
PEG (5Y)1.13
Graham Number62.05
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
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-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
WACC7.9%
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 Y42.27%
EPS Next 2Y21.26%
EPS Next 3Y17.78%
EPS Next 5YN/A
Revenue 1Y (TTM)6.42%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.58%
Revenue Next Year5.98%
Revenue Next 2Y6.14%
Revenue Next 3Y5.44%
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%
HORACE MANN EDUCATORS / HMN FAQ
What is the ChartMill fundamental rating of HORACE MANN EDUCATORS (HMN) stock?
ChartMill assigns a fundamental rating of 5 / 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 8.86 and the Price/Book (PB) ratio is 1.36.
What is the financial health of HORACE MANN EDUCATORS (HMN) stock?
The financial health rating of HORACE MANN EDUCATORS (HMN) is 4 / 10.