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 145 industry peers in the Insurance industry. HMN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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
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 0.80%. This is in the lower half of the industry: HMN underperforms 60.69% of its industry peers.
HMN's Return On Equity of 8.53% is in line compared to the rest of the industry. HMN outperforms 44.14% of its industry peers.
| 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
The Profit Margin of HMN (7.06%) is comparable to the rest of the industry.
HMN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.69%, HMN is in line with its industry, outperforming 50.34% of the companies in the same industry.
In the last couple of years the Operating Margin of HMN has declined.
| 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.
HMN has about the same amout of shares outstanding than it did 1 year ago.
HMN has less shares outstanding than it did 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 1.06. 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 Debt to FCF ratio of 1.06. This is in the better half of the industry: HMN outperforms 63.45% of its industry peers.
HMN has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HMN (0.41) is worse than 60.69% 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 | 0.41 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.11%
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 91.62%, which is quite impressive.
Measured over the past 5 years, HMN shows a small growth in Earnings Per Share. The EPS has been growing by 7.81% on average per year.
Looking at the last year, HMN shows a small growth in Revenue. The Revenue has grown by 5.86% in the last 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)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 Y26.09%
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
Based on the Price/Earnings ratio of 11.30, the valuation of HMN can be described as reasonable.
HMN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.50. HMN is valued rather cheaply when compared to this.
HMN is valuated reasonably with a Price/Forward Earnings ratio of 9.28.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, HMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
HMN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMN indicates a somewhat cheap valuation: HMN is cheaper than 76.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.25 | ||
| EV/EBITDA | 11.01 |
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)0.43
PEG (5Y)1.45
EPS Next 2Y18.2%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, HMN has a reasonable but not impressive dividend return.
HMN's Dividend Yield is a higher than the industry average which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.35, HMN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of HMN has a limited annual growth rate of 3.32%.
HMN has been paying a dividend for at least 10 years, so it has 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
48.82% of the earnings are spent on dividend by HMN. 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.
DP48.82%
EPS Next 2Y18.2%
EPS Next 3Y16.51%
41.37
+0.06 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners105.56%
Inst Owner Change0%
Ins Owners1.28%
Ins Owner Change3.46%
Market Cap1.69B
Analysts75
Price Target47.43 (14.65%)
Short Float %1.28%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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)0%
PT rev (3m)3.33%
EPS NQ rev (1m)3.52%
EPS NQ rev (3m)3.78%
EPS NY rev (1m)1.63%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 9.28 | ||
| P/S | 1.04 | ||
| P/FCF | 3.25 | ||
| P/OCF | 3.25 | ||
| P/B | 1.26 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)3.66
EY8.85%
EPS(NY)4.46
Fwd EY10.77%
FCF(TTM)12.71
FCFY30.73%
OCF(TTM)12.71
OCFY30.73%
SpS39.75
BVpS32.93
TBVpS27.86
PEG (NY)0.43
PEG (5Y)1.45
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
WACC8.11%
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 Y26.09%
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%