HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HMN - US4403271046 - Common Stock
45.78 USD
-0.29 (-0.63%)
45.78 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HMN. HMN was compared to 147 industry peers in the Insurance industry. HMN may be in some trouble as it scores bad on both profitability and health. HMN is valued quite cheap, while showing a decent growth score. This is a good combination! Finally HMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HMN was profitable.
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
HMN has a Return On Assets of 1.06%. This is in the lower half of the industry: HMN underperforms 61.90% of its industry peers.
HMN has a Return On Equity (11.39%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 11.39% | ||
| 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 9.79% is fine compared to the rest of the industry. HMN outperforms 60.54% of its industry peers.
HMN's Profit Margin has declined in the last couple of years.
HMN has a Operating Margin of 14.25%. This is in the better half of the industry: HMN outperforms 61.90% of its industry peers.
In the last couple of years the Operating Margin of HMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.25% | ||
| PM (TTM) | 9.79% | ||
| 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.
Compared to 1 year ago, HMN has an improved debt to assets ratio.
2.2 Solvency
HMN has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
HMN has a better Debt to FCF ratio (1.37) than 61.22% of its industry peers.
HMN has a Debt/Equity ratio of 0.58. This is a neutral value indicating HMN is somewhat dependend on debt financing.
HMN's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. HMN is outperformed by 78.91% 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 | 0.58 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.82%
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.
The Revenue has been growing slightly by 5.66% in the past year.
Measured over the past years, HMN shows a small growth in Revenue. The Revenue has been growing by 2.09% on average per year.
EPS 1Y (TTM)113.33%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.95%
Revenue 1Y (TTM)5.66%
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.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.94, the valuation of HMN can be described as very reasonable.
65.99% of the companies in the same industry are more expensive than HMN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HMN to the average of the S&P500 Index (26.31), we can say HMN is valued rather cheaply.
A Price/Forward Earnings ratio of 9.76 indicates a reasonable valuation of HMN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMN is on the same level as its industry peers.
HMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HMN.
Based on the Price/Free Cash Flow ratio, HMN is valued cheaper than 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.02 | ||
| EV/EBITDA | 10.04 |
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)1.14
EPS Next 2Y21.26%
EPS Next 3Y17.78%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 3.05%. 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 3.46.
HMN's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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
34.55% of the earnings are spent on dividend by HMN. This is a low number and sustainable payout ratio.
The dividend of HMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.55%
EPS Next 2Y21.26%
EPS Next 3Y17.78%
45.78
-0.29 (-0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.46%
Inst Owner Change6.18%
Ins Owners1.24%
Ins Owner Change-2.61%
Market Cap1.86B
Revenue(TTM)1.68B
Net Income(TTM)164.10M
Analysts75
Price Target49.98 (9.17%)
Short Float %1.43%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend1.36
Dividend Growth(5Y)3.32%
DP34.55%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.55%
Min EPS beat(2)21.01%
Max EPS beat(2)76.09%
EPS beat(4)4
Avg EPS beat(4)41.03%
Min EPS beat(4)9.22%
Max EPS beat(4)76.09%
EPS beat(8)7
Avg EPS beat(8)22.08%
EPS beat(12)10
Avg EPS beat(12)17.54%
EPS beat(16)12
Avg EPS beat(16)17.9%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-4.02%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-4.02%
Max Revenue beat(4)0.81%
Revenue beat(8)2
Avg Revenue beat(8)-1.91%
Revenue beat(12)2
Avg Revenue beat(12)-2.25%
Revenue beat(16)2
Avg Revenue beat(16)-2.17%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-3.67%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)0%
EPS NY rev (3m)2.69%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 9.76 | ||
| P/S | 1.11 | ||
| P/FCF | 3.02 | ||
| P/OCF | 3.02 | ||
| P/B | 1.29 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)5.12
EY11.18%
EPS(NY)4.69
Fwd EY10.25%
FCF(TTM)15.15
FCFY33.1%
OCF(TTM)15.15
OCFY33.1%
SpS41.17
BVpS35.41
TBVpS30.51
PEG (NY)0.21
PEG (5Y)1.14
Graham Number63.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 11.39% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.25% | ||
| PM (TTM) | 9.79% | ||
| GM | N/A | ||
| FCFM | 36.81% |
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-Score8
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.58 | ||
| Cash Conversion | 231.79% | ||
| Profit Quality | 375.87% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.82%
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)5.66%
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 1Y54.5%
EBIT growth 3Y-7.88%
EBIT growth 5Y-11.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y141.98%
FCF growth 3Y30.19%
FCF growth 5Y28.79%
OCF growth 1Y141.98%
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 4 / 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 8.94 and the Price/Book (PB) ratio is 1.29.
What is the financial health of HORACE MANN EDUCATORS (HMN) stock?
The financial health rating of HORACE MANN EDUCATORS (HMN) is 3 / 10.