NYSE:HMN

Stock Analysis Report

Horace Mann Educators

Executive Summary

Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States.

Rewards

PE ratio (14.2x) is below the US market (18.5x)

Risk Analysis

Earnings are forecast to decline by an average of -14.8% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Horace Mann Educators's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HMN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

HMN

0.9%

US Insurance

0.7%

US Market


1 Year Return

16.6%

HMN

21.8%

US Insurance

18.2%

US Market

Return vs Industry: HMN underperformed the US Insurance industry which returned 21.8% over the past year.

Return vs Market: HMN underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

HMNIndustryMarket
7 Day3.4%0.9%0.7%
30 Day1.7%0.5%1.5%
90 Day-3.3%1.3%5.0%
1 Year20.0%16.6%24.8%21.8%20.8%18.2%
3 Year12.6%3.9%32.5%22.3%45.2%35.8%
5 Year63.1%41.6%69.5%49.3%71.6%52.7%

Price Volatility Vs. Market

How volatile is Horace Mann Educators's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Horace Mann Educators undervalued compared to its fair value and its price relative to the market?

14.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HMN ($44.71) is trading above our estimate of fair value ($38.41)

Significantly Below Fair Value: HMN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HMN is good value based on its PE Ratio (14.2x) compared to the Insurance industry average (16.7x).

PE vs Market: HMN is good value based on its PE Ratio (14.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HMN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HMN is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

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

-14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMN's earnings are forecast to decline over the next 3 years (-14.8% per year).

Earnings vs Market: HMN's earnings are forecast to decline over the next 3 years (-14.8% per year).

High Growth Earnings: HMN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HMN's revenue (0.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HMN's revenue (0.6% 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 (8.3%).


Next Steps

Past Performance

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

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMN has high quality earnings.

Growing Profit Margin: HMN's current net profit margins (9.5%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: HMN's earnings have grown by 2.3% 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 (-20%) over the past year, making it difficult to compare to the Insurance industry average (-10.4%).


Return on Equity

High ROE: HMN's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Horace Mann Educators's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HMN has a low level of unsold assets or inventory.

Debt Coverage by Assets: HMN's debt is covered by short term assets (assets are 6.1x debt).


Financial Institutions Analysis

Asset Level: HMN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HMN has a sufficient allowance for bad loans.

Low Risk Liabilities: HMN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HMN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HMN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HMN has an appropriate level of bad loans.


Next Steps

Dividend

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

2.57%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Horace Mann Educators before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: HMN's dividend (2.57%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: HMN's dividend (2.57%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: HMN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.4%), HMN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HMN's dividends in 3 years are forecast to be well covered by earnings (48.1% payout ratio).


Next Steps

Management

What is the CEO of Horace Mann Educators's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Marita Zuraitis (59yo)

6.3yrs

Tenure

US$3,626,990

Compensation

Ms. Marita Zuraitis is the President, Chief Executive Officer and Director of Horace Mann Educators Corporation since September 2013. Prior to joining Horace Mann, she was President of the property and cas ...


CEO Compensation Analysis

Compensation vs Market: Marita's total compensation ($USD3.63M) is about average for companies of similar size in the US market ($USD3.90M).

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


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: HMN's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

64yo

Average Age

Experienced Board: HMN's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: HMN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$252,11319 Sep 19
Bret Conklin
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,456
Max PriceUS$46.22
SellUS$7,01009 Sep 19
Robert Stricker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares157
Max PriceUS$44.65
SellUS$169,87421 Aug 19
Robert Stricker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,843
Max PriceUS$44.20
SellUS$66,47415 Aug 19
Kimberly Johnson
EntityIndividual
Shares1,500
Max PriceUS$44.32
SellUS$232,74025 Mar 19
Bret Conklin
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares6,466
Max PriceUS$35.99

Ownership Breakdown

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


Management Team

  • Marita Zuraitis (59yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$3.63m
  • Bret Conklin (55yo)

    Executive VP & CFO

    • Tenure: 2.9yrs
    • Compensation: US$919.78k
  • Heather Wietzel

    Vice President of Investor Relations

    • Tenure: 1.6yrs
  • Bret Benham (58yo)

    Executive Vice President of Life & Retirement

    • Tenure: 2.1yrs
    • Compensation: US$970.82k
  • Allan Robinson (57yo)

    Executive Vice President of Field Operations & Sales Management

    • Tenure: 4.2yrs
  • Matthew Sharpe (57yo)

    Executive Vice President of Strategy & Business Development

    • Tenure: 0yrs
    • Compensation: US$1.39m
  • William Caldwell (48yo)

    Executive VP of Property & Casualty and Customer Engagement

    • Tenure: 6.1yrs
    • Compensation: US$1.07m
  • Donald Carley (51yo)

    Senior VP

    • Tenure: 3.6yrs
    • Compensation: US$722.28k
  • Wade Rugenstein

    Executive VP of Supplemental & Chief Information Officer

    • Tenure: 0yrs
  • Elizabeth Moore (55yo)

    VP & Chief Human Resources Officer

    • Tenure: 1.1yrs

Board Members

  • Marita Zuraitis (59yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$3.63m
  • Perry Hines

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$170.05k
  • Mark Konen (59yo)

    Independent Director

    • Tenure: 0.6yrs
  • Mark Casady (59yo)

    Independent Director

    • Tenure: 0.6yrs
  • Stephen Hasenmiller (69yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$180.20k
  • Henry Reece (62yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: US$225.05k
  • Daniel Domenech (73yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$170.20k
  • Robert Stricker (72yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$177.70k
  • Beverley McClure (64yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$192.05k
  • Steven Swyers (68yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$187.70k

Company Information

Horace Mann Educators Corporation's company bio, 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
  • Market Cap: US$1.843b
  • Shares outstanding: 41.22m
  • Website: https://www.horacemann.com

Number of Employees


Location

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

Listings

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

Biography

Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The Company operates through four segments: Property and Casualty, Retirement, L ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:39
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.