HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - NYSE:HMN - US4403271046 - Common Stock
46.48 USD
+0.54 (+1.18%)
46.48 USD
0 (0%)
Taking everything into account, HMN scores 5 out of 10 in our fundamental rating. HMN was compared to 147 industry peers in the Insurance industry. While HMN seems to be doing ok healthwise, there are quite some concerns on its profitability. HMN may be a bit undervalued, certainly considering the very reasonable score on growth 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
Looking at the Return On Assets, with a value of 0.95%, HMN is doing worse than 61.90% of the companies in the same industry.
HMN's Return On Equity of 10.30% is in line compared to the rest of the industry. HMN outperforms 51.70% 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
HMN's Profit Margin of 8.51% is in line compared to the rest of the industry. HMN outperforms 54.42% of its industry peers.
In the last couple of years the Profit Margin of HMN has declined.
The Operating Margin of HMN (12.61%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HMN has declined.
| 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.
Compared to 5 years ago, HMN has less shares outstanding
The debt/assets ratio for HMN has been reduced compared to a year ago.
2.2 Solvency
HMN has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.90, HMN is in the better half of the industry, outperforming 72.11% of the companies in the same industry.
HMN has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HMN (0.40) is worse than 62.59% 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 | 0.4 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.91%
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 113.33%, which is quite impressive.
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 6.42%.
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
Based on estimates for the next years, HMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.78% on average per year.
The Revenue is expected to grow by 5.44% on average over the next years.
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 9.08.
63.95% of the companies in the same industry are more expensive than HMN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.45, HMN is valued rather cheaply.
HMN is valuated reasonably with a Price/Forward Earnings ratio of 9.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMN is on the same level as its industry peers.
HMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HMN.
HMN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HMN is cheaper than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.1 | ||
| EV/EBITDA | 10.13 |
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 17.78% in the coming years.
PEG (NY)0.21
PEG (5Y)1.16
EPS Next 2Y21.26%
EPS Next 3Y17.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, HMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.51, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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 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.
The dividend of HMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.19%
EPS Next 2Y21.26%
EPS Next 3Y17.78%
46.48
+0.54 (+1.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.46%
Inst Owner Change6.16%
Ins Owners1.24%
Ins Owner Change-5.08%
Market Cap1.89B
Revenue(TTM)1.59B
Net Income(TTM)140.10M
Analysts75
Price Target49.98 (7.53%)
Short Float %1.43%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)3.52%
EPS NQ rev (1m)6.66%
EPS NQ rev (3m)11.21%
EPS NY rev (1m)1.71%
EPS NY rev (3m)12.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 9.91 | ||
| P/S | 1.15 | ||
| P/FCF | 3.1 | ||
| P/OCF | 3.1 | ||
| P/B | 1.39 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)5.12
EY11.02%
EPS(NY)4.69
Fwd EY10.09%
FCF(TTM)14.98
FCFY32.22%
OCF(TTM)14.98
OCFY32.22%
SpS40.47
BVpS33.42
TBVpS28.44
PEG (NY)0.21
PEG (5Y)1.16
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
WACC7.91%
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 9.08 and the Price/Book (PB) ratio is 1.39.
What is the financial health of HORACE MANN EDUCATORS (HMN) stock?
The financial health rating of HORACE MANN EDUCATORS (HMN) is 4 / 10.