HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HMN - US4403271046 - Common Stock
46.5 USD
-0.23 (-0.49%)
46.5 USD
0 (0%)
HMN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. HMN may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HMN. Finally HMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HMN had positive earnings in the past year.
HMN had a positive operating cash flow in the past year.
Of the past 5 years HMN 4 years were profitable.
HMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HMN's Return On Assets of 1.06% is on the low side compared to the rest of the industry. HMN is outperformed by 62.16% of its industry peers.
With a Return On Equity value of 11.39%, HMN perfoms like the industry average, outperforming 52.03% of the companies in the same industry.
| 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 has a better Profit Margin (9.79%) than 60.81% of its industry peers.
In the last couple of years the Profit Margin of HMN has declined.
HMN has a Operating Margin of 14.25%. This is comparable to the rest of the industry: HMN outperforms 59.46% of its industry peers.
HMN's Operating Margin has declined in the last couple of years.
| 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.
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 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 Debt to FCF ratio of 1.37. This is in the better half of the industry: HMN outperforms 61.49% 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.
Looking at the Debt to Equity ratio, with a value of 0.58, HMN is doing worse than 76.35% of the companies in the same industry.
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
WACC7.94%
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.
Looking at the last year, HMN shows a small growth in Revenue. The Revenue has grown by 5.66% in the last year.
HMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.09% yearly.
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
The Earnings Per Share is expected to grow by 18.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y48.08%
EPS Next 2Y21.67%
EPS Next 3Y18.83%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y6.14%
Revenue Next 3Y5.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.08, the valuation of HMN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HMN indicates a somewhat cheap valuation: HMN is cheaper than 69.59% of the companies listed in the same industry.
HMN is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.85, which indicates a very decent valuation of HMN.
61.49% of the companies in the same industry are more expensive than HMN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, HMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 9.85 |
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 cheaper than 83.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.07 | ||
| EV/EBITDA | 10.14 |
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 18.83% in the coming years.
PEG (NY)0.19
PEG (5Y)1.16
EPS Next 2Y21.67%
EPS Next 3Y18.83%
5. Dividend
5.1 Amount
HMN has a Yearly Dividend Yield of 3.00%.
HMN's Dividend Yield is a higher than the industry average which is at 2.30.
HMN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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
HMN pays out 34.55% of its income as dividend. This is a sustainable payout ratio.
The dividend of HMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.55%
EPS Next 2Y21.67%
EPS Next 3Y18.83%
46.5
-0.23 (-0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.11%
Inst Owner Change6.18%
Ins Owners1.22%
Ins Owner Change-2.25%
Market Cap1.89B
Revenue(TTM)1.68B
Net Income(TTM)164.10M
Analysts75
Price Target51.34 (10.41%)
Short Float %1.64%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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)-5.34%
EPS NQ rev (3m)-8.56%
EPS NY rev (1m)4.08%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 9.85 | ||
| P/S | 1.13 | ||
| P/FCF | 3.07 | ||
| P/OCF | 3.07 | ||
| P/B | 1.31 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)5.12
EY11.01%
EPS(NY)4.72
Fwd EY10.16%
FCF(TTM)15.16
FCFY32.61%
OCF(TTM)15.16
OCFY32.61%
SpS41.19
BVpS35.43
TBVpS30.53
PEG (NY)0.19
PEG (5Y)1.16
Graham Number63.89
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
WACC7.94%
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 Y48.08%
EPS Next 2Y21.67%
EPS Next 3Y18.83%
EPS Next 5YN/A
Revenue 1Y (TTM)5.66%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.58%
Revenue Next Year5.68%
Revenue Next 2Y6.14%
Revenue Next 3Y5.1%
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 9.08 and the Price/Book (PB) ratio is 1.31.
What is the financial health of HORACE MANN EDUCATORS (HMN) stock?
The financial health rating of HORACE MANN EDUCATORS (HMN) is 3 / 10.