HORACE MANN EDUCATORS (HMN)
US4403271046 - Common Stock
HMN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. HMN may be in some trouble as it scores bad on both profitability and health. HMN has a decent growth rate and is not valued too expensively. 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.
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 0.71%, HMN is doing worse than 65.22% of the companies in the same industry.
With a Return On Equity value of 8.09%, HMN is not doing good in the industry: 60.14% of the companies in the same industry are doing better.
| Industry Rank | Sector 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
1.3 Margins
HMN has a Profit Margin (6.56%) which is in line with its industry peers.
HMN's Profit Margin has improved in the last couple of years.
HMN has a Operating Margin (9.74%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HMN has grown nicely.
| Industry Rank | Sector 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
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 has been reduced compared to 1 year ago.
HMN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HMN is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HMN is 1.51, which is an excellent value as it means it would take HMN, only 1.51 years of fcf income to pay off 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 54.35% 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 61.59% 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 | 0.42 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.15%
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 306.78% over the past year.
HMN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.76% yearly.
HMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.87%.
HMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.57% yearly.
EPS 1Y (TTM)306.78%
EPS 3Y-23.2%
EPS 5Y17.76%
EPS Q2Q%72.73%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y4.28%
Revenue growth 5Y4.57%
Sales Q2Q%7.46%
3.2 Future
The Earnings Per Share is expected to grow by 39.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, HMN will show a small growth in Revenue. The Revenue will grow by 7.35% on average per year.
EPS Next Y68.72%
EPS Next 2Y56.72%
EPS Next 3Y39.56%
EPS Next 5YN/A
Revenue Next Year8.28%
Revenue Next 2Y8.03%
Revenue Next 3Y7.35%
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
The Price/Earnings ratio is 16.35, which indicates a correct valuation of HMN.
Compared to the rest of the industry, the Price/Earnings ratio of HMN is on the same level as its industry peers.
HMN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.37, which indicates a very decent valuation of HMN.
The rest of the industry has a similar Price/Forward Earnings ratio as HMN.
The average S&P500 Price/Forward Earnings ratio is at 23.59. HMN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 10.37 |
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.
Based on the Price/Free Cash Flow ratio, HMN is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.42 | ||
| EV/EBITDA | 11.66 |
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.
A more expensive valuation may be justified as HMN's earnings are expected to grow with 39.56% in the coming years.
PEG (NY)0.24
PEG (5Y)0.92
EPS Next 2Y56.72%
EPS Next 3Y39.56%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 3.42%.
Compared to an average industry Dividend Yield of 2.96, 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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
5.3 Sustainability
53.03% of the earnings are spent on dividend by HMN. This is a bit on the high side, but may be sustainable.
The dividend of HMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.03%
EPS Next 2Y56.72%
EPS Next 3Y39.56%
HORACE MANN EDUCATORS
NYSE:HMN (1/2/2025, 10:51:53 AM)
39.23
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.18%
Inst Owner Change0.33%
Ins Owners1.71%
Ins Owner Change-2.12%
Market Cap1.60B
Analysts73.33
Price Target44.88 (14.4%)
Short Float %1.8%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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)3.12%
PT rev (3m)14.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 10.37 | ||
| P/S | 1.01 | ||
| P/FCF | 4.42 | ||
| P/OCF | 4.42 | ||
| P/B | 1.24 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)2.4
EY6.12%
EPS(NY)3.78
Fwd EY9.64%
FCF(TTM)8.87
FCFY22.61%
OCF(TTM)8.87
OCFY22.61%
SpS38.91
BVpS31.58
TBVpS26.33
PEG (NY)0.24
PEG (5Y)0.92
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.15%
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)306.78%
EPS 3Y-23.2%
EPS 5Y17.76%
EPS Q2Q%72.73%
EPS Next Y68.72%
EPS Next 2Y56.72%
EPS Next 3Y39.56%
EPS Next 5YN/A
Revenue 1Y (TTM)9.87%
Revenue growth 3Y4.28%
Revenue growth 5Y4.57%
Sales Q2Q%7.46%
Revenue Next Year8.28%
Revenue Next 2Y8.03%
Revenue Next 3Y7.35%
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%