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Horace Mann Educators Corp. (HMN)
NYSE:HMN
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Horace Mann Educators
(NYSE:HMN)
71Outperform
Horace Mann Educators (HMN) vs. S&P 500 (SPY)
Market Cap
$1.69B
Dividend Yield3.3%
Average Volume (3M)305.42K
Price to Earnings (P/E)15.0
Beta (1Y)0.29
Revenue Growth6.92%
EPS Growth129.52%
CountryUS
Employees1,750
SectorFinancial
Sector Strength85
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.07
Shares Outstanding40,779,106
10 Day Avg. Volume296,410
30 Day Avg. Volume305,415
Financial Highlights & Ratios
PEG Ratio-10.51
Price to Book (P/B)1.33
Price to Sales (P/S)0.00
P/FCF Ratio3.79
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit1.41
Enterprise Value/Ebitda3.31
Forecast
1Y Price Target
$46.50Price Target Upside9.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Horace Mann Educators Business Overview & Revenue Model
Company DescriptionHorace 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. It also offers student loan solutions, including online student loan management accounts for educators. The company markets its products through its sales force of full-time exclusive agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.
How the Company Makes MoneyHorace Mann Educators makes money primarily through the sale of its insurance products and retirement solutions. The company generates revenue by collecting premiums from policyholders for auto, home, and life insurance policies. Additionally, Horace Mann earns money through its investment income, which is derived from the premiums collected and invested in various financial instruments. Revenue from retirement annuities is generated by managing these funds and charging fees for administration and investment management. The company also benefits from strategic partnerships with educational organizations, which help expand its customer base and enhance its distribution network.
Horace Mann Educators Financial Statement Overview
Summary
Horace Mann Educators demonstrated robust revenue growth and improved profitability, as evidenced by rising net margins. The balance sheet reflects stable leverage management, but the decreasing equity ratio warrants attention. Cash flow declined notably, suggesting potential liquidity issues that need addressing. Overall, the company shows solid financial health with areas requiring strategic focus.Income Statement
Horace Mann Educators displayed solid revenue growth, increasing from $1.31 billion in 2020 to $1.60 billion in 2024. The net profit margin improved significantly from 3.4% in 2022 to 6.4% in 2024, indicating enhanced profitability. However, the absence of EBIT and EBITDA data for 2024 suggests a reliance on other financial metrics to assess operational performance.75
Positive
Balance Sheet
The company's debt-to-equity ratio improved slightly from 0.39 in 2020 to 0.42 in 2024, showing stable leverage management. Stockholders' equity rose to $1.29 billion in 2024, reflecting a stronger equity base. However, the equity ratio decreased from 14.4% in 2021 to 8.9% in 2024, signaling increased asset leverage.70
Positive
Cash Flow
Operating cash flow decreased significantly from $302.1 million in 2023 to $96.6 million in 2024, indicating potential liquidity constraints. The free cash flow to net income ratio improved due to higher net income, yet the overall cash flow trend requires monitoring for sustainability.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.55B | 1.49B | 1.38B | 1.33B | 1.31B | Gross Profit |
| 1.55B | 1.49B | 1.38B | 1.33B | 1.31B | EBIT |
| 163.20M | 0.00 | 18.30M | 145.90M | 135.20M | EBITDA |
| 163.20M | 109.20M | 63.50M | 242.40M | 2.68B | Net Income Common Stockholders |
| 102.80M | 45.00M | 19.80M | 170.40M | 133.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.43B | 29.00M | 5.55B | 6.72B | 6.71B | Total Assets |
| 14.49B | 14.05B | 13.31B | 14.38B | 13.47B | Total Debt |
| 547.00M | 546.00M | 498.00M | 502.60M | 437.32M | Net Debt |
| 508.90M | 517.00M | 455.20M | 369.60M | 415.00M | Total Liabilities |
| 13.20B | 12.87B | 12.21B | 12.58B | 11.68B | Stockholders Equity |
| 1.29B | 1.18B | 1.10B | 1.81B | 1.79B |
| Cash Flow | Free Cash Flow | |||
| 452.10M | 302.10M | 207.20M | 207.20M | 358.25M | Operating Cash Flow |
| 452.10M | 302.10M | 171.50M | 204.90M | 259.79M | Investing Cash Flow |
| -135.80M | -107.40M | -214.60M | -302.00M | -406.76M | Financing Cash Flow |
| -307.90M | -207.80M | -47.80M | 208.50M | 143.78M |
Horace Mann Educators Technical Analysis
Positive
42.58
Price Trends
41.37
Positive
40.29
Positive
38.27
Positive
Market Momentum
0.27
Negative
59.01
Neutral
73.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HMN, the sentiment is Positive. The current price of 42.58 is above the 20-day moving average (MA) of 41.36, above the 50-day MA of 41.37, and above the 200-day MA of 38.27, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 73.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.47B | 20.91 | 16.03% | ― | 25.88% | 9.45% | |
73 Outperform | $2.27B | 45.13 | 17.95% | ― | 98.66% | ― | |
71 Outperform | $1.69B | 15.04 | 8.97% | 3.30% | 6.92% | 129.52% | |
69 Neutral | $1.19B | 16.37 | 8.75% | 4.50% | 19.05% | 40.69% | |
67 Neutral | $1.81B | 24.97 | 5.31% | 3.04% | 11.40% | ― | |
67 Neutral | $1.88B | 15.74 | 28.75% | 0.98% | 20.95% | 3.25% | |
64 Neutral | $12.75B | 9.93 | 7.86% | 17015.07% | 12.19% | -5.92% |
* Financial Sector Average
Performance Comparison
HMN
Horace Mann Educators
42.58
8.99
26.76%
SAFT
Safety Insurance Group
82.66
5.88
7.66%
STC
Stewart Information Services
66.04
3.18
5.06%
HCI
HCI Group
164.14
65.26
66.00%
ROOT
Root
135.71
70.13
106.94%
SKWD
Skyward Specialty Insurance Group, Inc.
62.56
26.03
71.26%
Horace Mann Educators Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 2.33%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with record-breaking core EPS, robust growth in sales across multiple segments, and significant improvements in the Property and Casualty segment. However, there were challenges such as increased catastrophe losses and higher mortality in the Life and Retirement segment. Despite these challenges, the company demonstrated solid progress towards its long-term goals and remains confident in its growth strategy.Q1-2025 Updates
Positive Updates
Record First Quarter Core EPS
Reported core EPS of $1.07, marking a 73% increase over the prior year and a record for the first quarter.
Strong Property and Casualty Segment Performance
Property and Casualty segment reported a combined ratio of 89.4%, a 10.5 point improvement over the prior year.
Significant Net Investment Income Growth
Total net investment income of $116 million, a 10% increase over prior year, with income on the internally managed portfolio up by 15%.
Robust Sales Growth Across Segments
Individual supplemental sales up 61%, auto sales up 8%, and annuity net contract deposits up 6%.
Increased Shareholder Returns
Board approved a dividend increase for the 17th consecutive year and executed $7 million in share repurchases.
Environmental Commitment Achievements
Achieved a 61% reduction in Scope 1 and Scope 2 emissions from the 2019 baseline.
Negative Updates
Higher Life and Retirement Segment Mortality
Earnings in Life and Retirement were below the prior year due to higher mortality rates, though within expected actuarial range.
Increased Catastrophe Losses
Catastrophe losses were $16.4 million, slightly above prior year, but excluding California wildfires, losses were below historical averages.
California Rate Increases Impacting New Business
Marginal impact on auto new business due to cumulative rate increases in California over the last two years.
Company Guidance
During the first quarter of 2025, Horace Mann Educators reported a record core EPS of $1.07, marking a 73% increase over the prior year. The company achieved a core return on equity of 10.6%, a 4.9 percentage point improvement from the previous year. Their Property and Casualty segment showed a robust performance with a combined ratio of 89.4%, improving by 10.5 points compared to the prior year. This segment's net written premiums rose by 8%, driven by higher average premiums. The Life and Retirement segment experienced lower earnings due to higher mortality but remained within actuarial expectations. The Individual Supplemental and Group Benefits segments witnessed a slight increase in core earnings, supported by strong customer demand and a 61% rise in individual supplemental sales. Total net investment income reached $116 million, a 10% increase from the previous year, with a notable 15% increase in income from their internally managed portfolio. Horace Mann reaffirmed its 2025 core EPS guidance range of $3.85 to $4.15, emphasizing its strategic focus on sustained profitable growth, backed by a diversified multiline business model.Horace Mann Educators Corporate Events
Executive/Board Changes
Horace Mann Educators Announces Executive Retirement
Neutral
Feb 5, 2025
Horace Mann Educators Company announced the upcoming retirement of Matthew Sharpe, Executive Vice President of Corporate Strategy, effective March 15, 2025. His current duties will be redistributed among the existing management team, ensuring a smooth transition and continuity in corporate strategy and operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.