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HMN

Horace Mann Educators NYSE:HMN Stock Report

Last Price

US$36.32

Market Cap

US$1.5b

7D

0.5%

1Y

-8.4%

Updated

25 Sep, 2022

Data

Company Financials +
HMN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends5/6

HMN Stock Overview

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States.

Horace Mann Educators Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Horace Mann Educators
Historical stock prices
Current Share PriceUS$36.32
52 Week HighUS$42.95
52 Week LowUS$32.60
Beta0.44
1 Month Change-1.33%
3 Month Change-4.19%
1 Year Change-8.35%
3 Year Change-21.79%
5 Year Change-7.70%
Change since IPO303.56%

Recent News & Updates

Sep 06

Horace Mann Educators declares $0.32 dividend

Horace Mann Educators (NYSE:HMN) declares $0.32/share quarterly dividend, in line with previous. Forward yield 3.65% Payable Sept. 30; for shareholders of record Sept. 16; ex-div Sept. 15. See HMN Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

HMNUS InsuranceUS Market
7D0.5%-4.2%-5.2%
1Y-8.4%-2.9%-23.0%

Return vs Industry: HMN underperformed the US Insurance industry which returned -2.9% over the past year.

Return vs Market: HMN exceeded the US Market which returned -23% over the past year.

Price Volatility

Is HMN's price volatile compared to industry and market?
HMN volatility
HMN Average Weekly Movement4.2%
Insurance Industry Average Movement4.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: HMN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HMN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19451,450Marita Zuraitishttps://www.horacemann.com

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. It operates in three segments: Property & Casualty, Life & Retirement, and Supplemental & Group Benefits. The company underwrites and markets personal lines of property and casualty insurance, including personal lines auto and property insurance products; supplemental insurance products, which include cancer, heart, hospital, supplemental disability, and accident coverages; retirement products, such as tax-qualified fixed and variable annuities; and life insurance products comprising whole life and term, as well as indexed universal life insurance products.

Horace Mann Educators Fundamentals Summary

How do Horace Mann Educators's earnings and revenue compare to its market cap?
HMN fundamental statistics
Market CapUS$1.49b
Earnings (TTM)US$58.80m
Revenue (TTM)US$1.35b

25.3x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HMN income statement (TTM)
RevenueUS$1.35b
Cost of RevenueUS$967.20m
Gross ProfitUS$386.90m
Other ExpensesUS$328.10m
EarningsUS$58.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.44
Gross Margin28.57%
Net Profit Margin4.34%
Debt/Equity Ratio39.5%

How did HMN perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

90%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HMN?

Other financial metrics that can be useful for relative valuation.

HMN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA19.3x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does HMN's PE Ratio compare to its peers?

HMN PE Ratio vs Peers
The above table shows the PE ratio for HMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.2x
AIZ Assurant
16.2x24.2%US$7.9b
HIG Hartford Financial Services Group
9.6x16.5%US$20.0b
AAME Atlantic American
23.9xn/aUS$60.2m
AIG American International Group
3x-11.7%US$37.8b
HMN Horace Mann Educators
25.3x43.1%US$1.5b

Price-To-Earnings vs Peers: HMN is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (13.2x).


Price to Earnings Ratio vs Industry

How does HMN's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Earnings vs Industry: HMN is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the US Insurance industry average (13.1x)


Price to Earnings Ratio vs Fair Ratio

What is HMN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HMN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.3x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: HMN is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


Share Price vs Fair Value

What is the Fair Price of HMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HMN ($36.32) is trading below our estimate of fair value ($52.43)

Significantly Below Fair Value: HMN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Horace Mann Educators forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


43.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMN's forecast earnings growth (43.1% per year) is above the savings rate (1.9%).

Earnings vs Market: HMN's earnings (43.1% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: HMN's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HMN's revenue (4.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HMN's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMN's Return on Equity is forecast to be low in 3 years time (10.9%).


Discover growth companies

Past Performance

How has Horace Mann Educators performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HMN has high quality earnings.

Growing Profit Margin: HMN's current net profit margins (4.3%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: HMN's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: HMN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HMN had negative earnings growth (-65.5%) over the past year, making it difficult to compare to the Insurance industry average (-22.8%).


Return on Equity

High ROE: HMN's Return on Equity (4.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Horace Mann Educators's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HMN's short term assets ($3.2B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: HMN's short term assets ($3.2B) do not cover its long term liabilities ($11.4B).


Debt to Equity History and Analysis

Debt Level: HMN's net debt to equity ratio (27.9%) is considered satisfactory.

Reducing Debt: HMN's debt to equity ratio has increased from 18.2% to 39.5% over the past 5 years.

Debt Coverage: HMN's debt is well covered by operating cash flow (33.8%).

Interest Coverage: HMN's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


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Dividend

What is Horace Mann Educators's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HMN's dividend (3.52%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: HMN's dividend (3.52%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

Stable Dividend: HMN's dividends per share have been stable in the past 10 years.

Growing Dividend: HMN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (89.8%), HMN's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.1%), HMN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Marita Zuraitis (62 yo)

9yrs

Tenure

US$6,118,976

Compensation

Ms. Marita Zuraitis is a Director at CopperPoint Mutual Insurance Holding Company from June, 2022. She serves as President and Chief Executive Officer of Horace Mann Educators Corporation. She was appointe...


CEO Compensation Analysis

Compensation vs Market: Marita's total compensation ($USD6.12M) is about average for companies of similar size in the US market ($USD5.62M).

Compensation vs Earnings: Marita's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HMN's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: HMN's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:HMN Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
11 May 22BuyUS$189,800Thomas BradleyIndividual5,000US$37.96
10 Feb 22SellUS$61,911Kimberly JohnsonIndividual1,500US$41.27
10 Nov 21BuyUS$101,175Thomas BradleyIndividual2,500US$40.47
29 Sep 21SellUS$40,370Robert StrickerIndividual1,000US$40.37

Ownership Breakdown

What is the ownership structure of HMN?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders135,6380.3%
Institutions43,557,23299.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 86.75% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.78%
BlackRock, Inc.
6,045,068$219.6m-0.52%0.01%
12.22%
The Vanguard Group, Inc.
4,998,454$181.5m0.71%no data
7.73%
Dimensional Fund Advisors LP
3,163,413$114.9m5.02%0.03%
7.42%
EARNEST Partners, LLC
3,036,378$110.3m2.6%0.71%
6.5%
Franklin Resources, Inc.
2,659,374$96.6m-11.77%0.04%
3.87%
Channing Capital Management, LLC
1,582,058$57.5m14.57%2%
3.8%
State Street Global Advisors, Inc.
1,553,176$56.4m1.87%no data
3.64%
Silvercrest Asset Management Group LLC
1,487,903$54.0m-18.23%0.42%
3.61%
Managed Account Advisors LLC
1,476,048$53.6m2.1%0.01%
2.25%
Hotchkis and Wiley Capital Management, LLC
918,915$33.4m-0.86%0.13%
2.21%
GW&K Investment Management, LLC
904,553$32.9m3.45%0.35%
1.99%
New York State Common Retirement Fund
814,698$29.6m1.35%0.04%
1.76%
Geode Capital Management, LLC
720,990$26.2m-0.26%no data
1.62%
DePrince, Race & Zollo, Inc.
660,584$24.0m-5.69%0.57%
1.6%
American Beacon Advisors, Inc.
655,708$23.8m-7.7%0.34%
1.47%
Victory Capital Management Inc.
600,902$21.8m-11.07%0.02%
1.41%
Invesco Capital Management LLC
575,993$20.9m30.61%0.02%
1.34%
BNY Mellon Asset Management
546,676$19.9m-5.54%no data
1.33%
SEI Investments Company
545,528$19.8m32.79%0.03%
1.08%
Bragg Financial Advisors, Inc.
442,527$16.1m3.59%1.09%
1.06%
Palisade Capital Management LLC
431,664$15.7m0.81%0.53%
1.05%
Charles Schwab Investment Management, Inc.
430,200$15.6m1.56%no data
1.04%
Northern Trust Global Investments
424,052$15.4m-1.73%no data
1%
Columbia Management Investment Advisers, LLC
407,162$14.8m-2.98%no data
0.97%
Norges Bank Investment Management
397,395$14.4m0%no data

Company Information

Horace Mann Educators Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Horace Mann Educators Corporation
  • Ticker: HMN
  • Exchange: NYSE
  • Founded: 1945
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Implied Market Cap: US$1.485b
  • Shares outstanding: 40.90m
  • Website: https://www.horacemann.com

Number of Employees


Location

  • Horace Mann Educators Corporation
  • 1 Horace Mann Plaza
  • Springfield
  • Illinois
  • 62715-0001
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMNNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1991
HM9DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1991

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.