Horace Mann Educators Corporation
Horace Mann Educators Corporation Fundamental Analysis
Horace Mann Educators Corporation (HMN) shows moderate financial fundamentals with a PE ratio of 11.05, profit margin of 9.86%, and ROE of 11.52%. The company generates $1.6B in annual revenue with moderate year-over-year growth of 8.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HMN's fundamental strength across five key dimensions:
Efficiency Score
WeakHMN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHMN trades at attractive valuation levels.
Growth Score
ModerateHMN shows steady but slowing expansion.
Financial Health Score
ModerateHMN shows balanced financial health with some risks.
Profitability Score
WeakHMN struggles to sustain strong margins.
Key Financial Metrics
Is HMN Expensive or Cheap?
P/E Ratio
HMN trades at 11.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HMN's PEG of -8.79 indicates potential undervaluation.
Price to Book
The market values Horace Mann Educators Corporation at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.85 times EBITDA. This is generally considered low.
How Well Does HMN Make Money?
Net Profit Margin
For every $100 in sales, Horace Mann Educators Corporation keeps $9.86 as profit after all expenses.
Operating Margin
Core operations generate 29.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.52 in profit for every $100 of shareholder equity.
ROA
Horace Mann Educators Corporation generates $1.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Horace Mann Educators Corporation generates strong operating cash flow of $413.90M, reflecting robust business health.
Free Cash Flow
Horace Mann Educators Corporation generates strong free cash flow of $413.90M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.17 in free cash annually.
FCF Yield
HMN converts 24.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-8.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HMN Stacks Against Its Sector Peers
| Metric | HMN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.05 | 18.86 | Better (Cheaper) |
| ROE | 11.52% | 847.00% | Weak |
| Net Margin | 9.86% | 4202.00% | Weak |
| Debt/Equity | 0.40 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 1.06% | -21543.00% (disorted) | Weak |
HMN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Horace Mann Educators Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.22%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-44.34%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
253.85%
Industry Style: Value, Dividend, Cyclical
High Growth