HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
NYSE:HMN - New York Stock Exchange, Inc. - US4403271046 - Common Stock - Currency: USD
HMN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate. 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.
In the past 5 years HMN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.80%, HMN is not doing good in the industry: 60.96% of the companies in the same industry are doing better.
With a Return On Equity value of 8.53%, HMN perfoms like the industry average, outperforming 44.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 8.53% | ||
| 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 7.06%, HMN is in line with its industry, outperforming 51.37% of the companies in the same industry.
In the last couple of years the Profit Margin of HMN has declined.
With a Operating Margin value of 10.69%, HMN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
HMN's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.69% | ||
| PM (TTM) | 7.06% | ||
| 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.
The number of shares outstanding for HMN has been reduced compared to 5 years ago.
HMN has a better debt/assets ratio than last year.
2.2 Solvency
HMN has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
HMN has a better Debt to FCF ratio (1.06) than 63.70% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that HMN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, HMN is not doing good in the industry: 60.96% of the companies in the same industry are doing better.
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 | 0.41 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.04%
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 91.62% over the past year.
The Earnings Per Share has been growing slightly by 7.81% on average over the past years.
HMN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
The Revenue has been growing slightly by 2.09% on average over the past years.
EPS 1Y (TTM)91.62%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.33%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.88%
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 16.51% on average per year.
HMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.75% yearly.
EPS Next Y26.61%
EPS Next 2Y18.2%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue Next Year5.98%
Revenue Next 2Y5.84%
Revenue Next 3Y4.75%
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 11.64.
HMN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HMN to the average of the S&P500 Index (27.45), we can say HMN is valued rather cheaply.
HMN is valuated reasonably with a Price/Forward Earnings ratio of 9.56.
HMN's Price/Forward Earnings is on the same level as the industry average.
HMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
HMN's Enterprise Value to EBITDA ratio is in line with the industry average.
HMN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HMN is cheaper than 77.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.35 | ||
| EV/EBITDA | 11.27 |
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 16.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)1.49
EPS Next 2Y18.2%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 3.29%. 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 3.71.
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 | 3.29% |
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
48.82% 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.
DP48.82%
EPS Next 2Y18.2%
EPS Next 3Y16.51%
42.6
+0.68 (+1.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners105.56%
Inst Owner Change-50.84%
Ins Owners1.28%
Ins Owner Change3.46%
Market Cap1.74B
Analysts75
Price Target47.43 (11.34%)
Short Float %1.54%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend1.36
Dividend Growth(5Y)3.32%
DP48.82%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.52%
Min EPS beat(2)9.22%
Max EPS beat(2)57.82%
EPS beat(4)4
Avg EPS beat(4)19.12%
Min EPS beat(4)4.57%
Max EPS beat(4)57.82%
EPS beat(8)7
Avg EPS beat(8)14.19%
EPS beat(12)9
Avg EPS beat(12)16.28%
EPS beat(16)12
Avg EPS beat(16)13.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)-1.87%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)1
Avg Revenue beat(12)-2.43%
Revenue beat(16)3
Avg Revenue beat(16)-1.82%
PT rev (1m)3.33%
PT rev (3m)3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.23%
EPS NY rev (1m)2.06%
EPS NY rev (3m)4.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 9.56 | ||
| P/S | 1.07 | ||
| P/FCF | 3.35 | ||
| P/OCF | 3.35 | ||
| P/B | 1.29 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 11.27 |
EPS(TTM)3.66
EY8.59%
EPS(NY)4.46
Fwd EY10.46%
FCF(TTM)12.71
FCFY29.84%
OCF(TTM)12.71
OCFY29.84%
SpS39.75
BVpS32.93
TBVpS27.86
PEG (NY)0.44
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 8.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 10.69% | ||
| PM (TTM) | 7.06% | ||
| GM | N/A | ||
| FCFM | 31.98% |
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 | 0.41 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 259.07% | ||
| Profit Quality | 452.75% | ||
| 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)91.62%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.33%
EPS Next Y26.61%
EPS Next 2Y18.2%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.88%
Revenue Next Year5.98%
Revenue Next 2Y5.84%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
EBIT growth 1Y53.77%
EBIT growth 3Y-7.88%
EBIT growth 5Y-11.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y219.61%
FCF growth 3Y30.19%
FCF growth 5Y28.79%
OCF growth 1Y219.61%
OCF growth 3Y30.19%
OCF growth 5Y28.79%