Education
About Us
Working with TipRanks
Follow Us
Horace Mann Educators Corp. (HMN)
NYSE:HMN
Top Page
Horace Mann Educators
(NYSE:HMN)
75Outperform
Horace Mann Educators (HMN) vs. S&P 500 (SPY)
Market Cap
$1.65B
Dividend Yield3.36%
Average Volume (3M)215.13K
Price to Earnings (P/E)16.3
Beta (1Y)0.37
Revenue Growth6.92%
EPS Growth129.52%
CountryUS
Employees1,700
SectorFinancial
Sector Strength81
IndustryInsurance
Share Statistics
EPS (TTM)2.48
Shares Outstanding40,871,983
10 Day Avg. Volume219,243
30 Day Avg. Volume215,127
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)1.04
Price to Cash Flow (P/CF)2.10
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.50Price Target Upside8.59% Upside
Rating ConsensusHold
Number of Analyst Covering3
Horace Mann Educators Business Overview & Revenue Model
Company DescriptionHorace Mann Educators Corporation (HMN) is a leading insurance and financial services company focused primarily on serving the unique needs of educators and school employees in the United States. Founded in 1945, the company offers a comprehensive range of products including auto, home, life insurance, and retirement annuities, tailored to provide financial security and peace of mind for the education community.
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, with rising net margins. However, the decreasing equity ratio and significant cash flow decline suggest potential areas of concern.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 | |||
| 1.60B | 1.49B | 1.38B | 1.33B | 1.31B | Gross Profit |
| 1.60B | 1.49B | 1.38B | 1.33B | 1.31B | EBIT |
| 1.25B | 0.00 | 18.30M | 145.90M | 135.20M | EBITDA |
| 0.00 | 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 | |||
| 96.60M | 302.10M | 207.20M | 207.20M | 358.25M | Operating Cash Flow |
| 96.60M | 302.10M | 171.50M | 204.90M | 259.79M | Investing Cash Flow |
| -44.10M | -107.40M | -214.60M | -302.00M | -406.76M | Financing Cash Flow |
| -52.50M | -207.80M | -47.80M | 208.50M | 143.78M |
Horace Mann Educators Technical Analysis
Positive
40.98
Price Trends
39.72
Positive
39.70
Positive
36.63
Positive
Market Momentum
0.31
Positive
51.34
Neutral
21.77
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 40.98 is below the 20-day moving average (MA) of 41.15, above the 50-day MA of 39.72, and above the 200-day MA of 36.63, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.77 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 25 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $5.88B | 13.98 | 16.03% | 2.11% | 4.07% | 1110.92% | |
82 Outperform | $21.93B | 9.65 | 17.61% | 2.31% | 13.22% | 24.83% | |
77 Outperform | $23.50B | 14.23 | 22.16% | 0.51% | 12.32% | 29.21% | |
75 Outperform | $1.65B | 16.31 | 8.35% | 3.36% | 6.92% | 129.52% | |
73 Outperform | $10.39B | 11.70 | 20.33% | 2.44% | 6.91% | 4.97% | |
65 Neutral | $5.09B | 25.92 | 6.82% | 1.74% | 15.35% | -44.64% | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% |
* Financial Sector Average
Performance Comparison
HMN
Horace Mann Educators
40.98
7.27
21.57%
AFG
American Financial Group
125.00
0.14
0.11%
CINF
Cincinnati Financial
141.99
25.20
21.58%
SIGI
Selective Insurance Group
85.45
-16.20
-15.94%
THG
Hanover Insurance
166.39
39.51
31.14%
WRB
W. R. Berkley Corporation
61.87
6.42
11.58%
Horace Mann Educators Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 5.54% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in profitability restoration and growth across multiple segments, demonstrating strong financial performance and strategic advancements. However, challenges such as the impact of California wildfires and lower earnings in the life and retirement segment were noted, but they were outweighed by the positive outcomes.Highlights
Record Fourth Quarter Earnings
Horace Mann reported record fourth quarter core earnings of $1.62 per share, a 93% increase over the prior year.
Improved P&C Profitability
The property and casualty segment saw a full-year combined ratio of 98%, a 15-point improvement over the prior year.
Strong Premium and Sales Growth
Premiums and contract deposits increased 8% over the prior year, with P&C net premiums earned increasing 14%. Sales grew by double-digit percentages in auto, individual supplemental, and life lines.
Increased Investment Income
Net investment income increased over the prior year due to strong core fixed income returns, benefiting from a higher interest rate environment.
Operational and Technological Advancements
The company rolled out a new CRM platform, Catalyst, and is nearing completion of straight-through processing capabilities in the individual supplemental line.
Lowlights
California Wildfires Impact
The current estimate of direct policyholder losses from the California wildfires is between $5 million to $10 million.
Lower Life & Retirement Earnings
Core earnings in life and retirement were below the prior year, primarily due to lower net interest margins.
Legacy Commercial Exposures
Recorded $18 million of reserves and $2 million of expenses pretax related to legacy commercial policies.
Company Guidance
During the Horace Mann Educators 2024 Fourth Quarter Investor call, the company provided guidance for 2025, focusing on continued profitability and growth. They reported record fourth-quarter core earnings of $1.62 per share, a 93% increase year-over-year, and a full-year 2024 core EPS of $3.18, more than doubling the prior year's results. The guidance for 2025 anticipates core earnings between $3.60 and $3.90 per share, with a return on equity of at least 10%. The company aims to maintain a property and casualty combined ratio in the mid-90s, reflecting ongoing efforts to manage risk and improve profitability. They expect net investment income to be between $470 million and $480 million, with a focus on leveraging higher interest rates and improving returns from commercial mortgage loans and limited partnerships. Horace Mann is also enhancing its product offerings and operational efficiencies, including the introduction of a new cancer product in the supplemental line and investments in technology such as the Catalyst CRM platform to support growth.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.