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Horace Mann Educators
(NYSE:HMN)
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Rating:78Outperform
Price Target:
$60.00
▲(15.16% Upside)
Action:Reiterated
Date:08/08/26
HMN scores well primarily due to improving financial performance (profitability rebound, moderating leverage, and strong free-cash-flow momentum) and a notably positive earnings update with raised 2026 core EPS guidance and better P&C underwriting results. Valuation is supportive (P/E ~13 with a ~2.7% yield), while technicals indicate a steady uptrend without stretched momentum. The key risk tempering the score is historically volatile margins and some headwinds flagged on the call (lower net investment income outlook and higher benefit ratio assumptions).
Positive Factors
Free Cash Flow Strength
Consistent, rising free cash flow and strong FCF-to-net-income conversion provide durable financial flexibility. This supports recurring capital returns, opportunistic M&A and debt management, and offers a buffer through underwriting cycles without relying solely on investment gains.
Negative Factors
Historical Margin Volatility
Meaningful swings in margins across recent years show sensitivity to underwriting cycles and reserve adjustments. Such volatility can erode capital or force conservative reserve builds, making medium-term earnings and ROE targets harder to sustain through adverse claim environments.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistent, rising free cash flow and strong FCF-to-net-income conversion provide durable financial flexibility. This supports recurring capital returns, opportunistic M&A and debt management, and offers a buffer through underwriting cycles without relying solely on investment gains.
Read all positive factors
Horace Mann Educators (HMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend Yield2.75%
Average Volume (3M)252.62K
Price to Earnings (P/E)12.0
Beta (1Y)0.27
Revenue Growth5.88%
EPS Growth27.19%
CountryUS
Employees1,800
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.31
Shares Outstanding40,501,053
10 Day Avg. Volume330,917
30 Day Avg. Volume252,622
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.29
Price to Sales (P/S)1.18
P/FCF Ratio3.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$54.00Price Target Upside3.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.7
Revenue Forecast (FY)$1.27B
Horace Mann Educators Business Overview & Revenue Model
Company Description
Horace Mann Educators Corporation functions as an insurance holding company, conducting its operations through various subsidiaries throughout the United States. The company is structured into three main divisions: Property & Casualty, Life & Reti...
How the Company Makes Money
Horace Mann primarily makes money through insurance and retirement/financial product revenues across its main lines of business. (1) Property & Casualty insurance: The company collects premiums on policies such as auto and homeowners and earns und...
Horace Mann Educators Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong operating results across segments, notable revenue and sales growth (especially in individual supplemental, group benefits, and life), a meaningful improvement in P&C profitability, increased full-year EPS guidance, and solid capital metrics (tangible book value growth and ongoing shareholder returns). Headwinds cited were a lowered net investment income outlook driven by alternative strategies in a higher-for-longer rate environment, a higher blended benefit ratio in the growing group benefits mix (anticipated and priced), flat P&C premiums, and some seasonality/near-term utilization risk in paid family & medical leave. On balance, the positive operating momentum, guidance raise, and strategic M&A/distribution progress outweigh the manageable near-term headwinds.Positive Updates
Record Second-Quarter Core EPS
Reported record second-quarter core earnings per share of $1.17, an increase of more than 10% versus the prior year.
Negative Updates
Lowered Net Investment Income Guidance
Full-year net investment income outlook was reduced to $465–$475 million (managed portfolio income $365–$375 million) due to softer expectations for certain alternative strategies sensitive to a higher-for-longer interest rate environment.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Second-Quarter Core EPS
Reported record second-quarter core earnings per share of $1.17, an increase of more than 10% versus the prior year.
Read all positive updates
Company Guidance
Management raised full‑year 2026 core earnings guidance to $4.60–$4.90 per share after a strong Q2 (core EPS $1.17, +>10% YoY) and a trailing‑12‑month core ROE of 12.8%; the update reflected lowered full‑year catastrophe expectations of ~$75M (from $90M), reduced net investment income guidance of $465M–$475M (managed portfolio income $365M–$375M), and a higher blended individual supplemental and group benefits benefit ratio of ~42%, with interest expense and other corporate items of $35M–$40M. Quarterly operating metrics supporting the raise included total revenues +8% YoY, P&C combined ratio improved 7 points to 89.6 (P&C core earnings $26M, +56% YoY), net written premiums of $212M (flat) with property premiums +6%, life sales +20%, individual supplemental & group benefits sales growth noted as +44% (segment individual sales +5% in Q2), persistency ~96% for life and ~89% for individual supplemental, auto household retention ~84% and other business retention near/above 90%, online quoting +~10%, new‑money fixed income yield 5.85% for the quarter, tangible book value per share +10% YoY, $15M returned as dividends and ~$37M remaining buyback authorization. Management reiterated long‑term targets of 10% CAGR in core EPS and sustainable ROE of 12%–13%, noted that announced acquisitions (not in 2026 guidance) are expected to be immediately accretive in 2027 (~100 bps ROE accretion and ~$0.40–$0.50 annual run‑rate EPS) with a 6–7 year TBV payback by standard methodology.Horace Mann Educators Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.62B | 1.55B | 1.43B | 1.34B | 1.25B |
| Gross Profit | 825.20M | 572.00M | 478.40M | 356.80M | 332.50M | 409.00M |
| EBITDA | 281.30M | 264.70M | 189.60M | 109.20M | 63.50M | 242.40M |
| Net Income | 177.30M | 162.10M | 102.80M | 45.00M | 19.80M | 170.40M |
Balance Sheet | ||||||
| Total Assets | 15.60B | 15.27B | 14.49B | 14.05B | 13.31B | 14.38B |
| Cash, Cash Equivalents and Short-Term Investments | 5.81B | 634.50M | 513.30M | 5.49B | 5.41B | 6.72B |
| Total Debt | 594.20M | 593.40M | 547.00M | 546.00M | 498.00M | 502.60M |
| Total Liabilities | 14.10B | 13.78B | 13.20B | 12.87B | 12.21B | 12.58B |
| Stockholders Equity | 1.50B | 1.48B | 1.29B | 1.18B | 1.10B | 1.81B |
Cash Flow | ||||||
| Free Cash Flow | 566.10M | 553.20M | 452.10M | 302.10M | 171.50M | 204.90M |
| Operating Cash Flow | 566.10M | 553.20M | 452.10M | 302.10M | 171.50M | 204.90M |
| Investing Cash Flow | -266.80M | -252.10M | -135.80M | -107.40M | -214.60M | -302.00M |
| Financing Cash Flow | -294.00M | -311.70M | -307.90M | -207.80M | -47.80M | 208.50M |
Horace Mann Educators Technical Analysis
Neutral
52.10
Price Trends
51.36
Positive
48.08
Positive
45.80
Positive
Market Momentum
0.14
Positive
48.57
Neutral
18.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HMN, the sentiment is Neutral. The current price of 52.1 is above the 20-day moving average (MA) of 52.07, above the 50-day MA of 51.36, and above the 200-day MA of 45.80, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 18.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HMN.
Horace Mann Educators Risk Analysis
Horace Mann Educators disclosed 27 risk factors in its most recent earnings report. Horace Mann Educators reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Horace Mann Educators Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.56B | 13.02 | 16.84% | ― | 37.99% | 34.78% | |
81 Outperform | $2.27B | 7.05 | 30.79% | 0.89% | 22.83% | 86.58% | |
78 Outperform | $2.08B | 12.00 | 12.03% | 2.73% | 5.88% | 27.19% | |
74 Outperform | $1.52B | 22.09 | 7.16% | 3.57% | 7.04% | -18.57% | |
71 Outperform | $2.08B | 14.83 | 8.40% | 3.11% | 22.49% | 44.43% | |
71 Outperform | $769.70M | 14.09 | 15.91% | ― | 14.86% | -30.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HMN
Horace Mann Educators
51.61
7.92
18.12%
SAFT
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103.28
33.08
47.11%
STC
Stewart Information Services
68.01
-0.73
-1.06%
HCI
HCI Group
185.03
28.17
17.96%
ROOT
Root
52.29
-34.51
-39.76%
SKWD
Skyward Specialty Insurance Group, Inc.
58.44
9.91
20.42%
Horace Mann Educators Corporate Events
Business Operations and StrategyM&A Transactions
Horace Mann to Acquire Employee Services LLC Unit
Positive
Jul 21, 2026
On July 21, 2026, Horace Mann Educators Corporation agreed to acquire all equity interests of Employee Services LLC from Medical Mutual of Ohio for approximately $115 million, funded through cash on hand and borrowings under its existing credit fa...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Horace Mann to Acquire Reserve National Insurance Company
Positive
Jul 21, 2026
On July 21, 2026, Horace Mann Educators Corporation agreed to acquire all outstanding shares of Reserve National Insurance Company from Medical Mutual of Ohio for approximately $125 million and to enter a related reinsurance transaction with Medic...
Executive/Board ChangesShareholder Meetings
Horace Mann Shareholders Reelect Board, Affirm Governance Practices
Positive
May 21, 2026
At its Annual Meeting of Shareholders held on May 20, 2026, Horace Mann Educators Corporation shareholders elected nine directors, including Thomas A. Bradley and CEO Marita Zuraitis, with substantial majorities of votes cast in favor of each nomi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.