Horace Mann Educators (HMN) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: 3%
• Average Volume (3M): 234.82K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.31
• Revenue Growth: 6.01%
• EPS Growth: 72.52%
• Country: US
• Employees: 1,750
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.07
• Shares Outstanding: 40,695,730
• 10 Day Avg. Volume: 172,789
• 30 Day Avg. Volume: 234,817
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 10.25
• 1Y Price Target: $49.00
• Price Target Upside: 6.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 82 Outperform
• Price Target: $52.00 ▲(13.09% Upside)

Horace Mann Educators receives a strong overall score due to its robust financial performance, bullish technical indicators, and positive earnings call sentiment. The company's attractive valuation and enhanced financial flexibility from recent corporate events further support its favorable outlook.

Positive Factors

Capital Management

High confidence in the near-term property and casualty margin improvement thesis plus capital management outlook.

Sales Strategy

Horace Mann's strategy of selling mainly to schoolteachers through its captive salesforce is one that can bear meaningful fruit.

Valuation

Valuation remains more than 10% less expensive compared to peers.

Negative Factors

Management Guidance

Management's recent KPI guidance track record is mixed.

Horace Mann Educators Business Overview & Revenue Model

Company Description

Horace Mann Educators Corporation (HMN) is a publicly traded insurance and financial services company focused primarily on serving the needs of educators and their families. Established in 1945, the company offers a range of products, including auto, home, and life insurance, as well as annuities and retirement plans. HMN operates primarily in the insurance sector, catering specifically to teachers and educational professionals, and emphasizes personalized service and understanding of their unique financial needs.

How the Company Makes Money

Horace Mann generates revenue primarily through the sale of insurance premiums and financial products. The company earns income from its property and casualty insurance lines, including auto and homeowners insurance, as well as life insurance premiums. Additionally, HMN earns fees and commissions from its investment products, such as annuities and retirement savings plans. The company also benefits from investment income generated by the premiums collected, which are invested in various financial instruments. Key partnerships with educational organizations and institutions help drive customer acquisition and retention, enhancing their revenue streams.

Horace Mann Educators Financial Statement Overview

Summary

Horace Mann Educators demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable, with a sound equity base and controlled debt levels. Cash flow generation is robust, supporting operational and strategic initiatives. While profitability margins can be further optimized, the overall financial position is positive, supporting future growth prospects.

Income Statement

Horace Mann Educators shows a positive trajectory in its income statement. The TTM Gross Profit Margin is exceptionally high, suggesting efficient cost management. Net Profit Margin indicates profitability, though lower relative to gross margins. Revenue Growth Rate year-over-year is strong, indicating successful expansion and market penetration. However, EBIT and EBITDA Margins are moderate, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet of Horace Mann Educators reflects moderate financial stability. The Debt-to-Equity Ratio is stable, reflecting controlled leverage. Return on Equity is healthy, showcasing effective use of equity to generate profits. The Equity Ratio is strong, highlighting a solid capital structure with sufficient equity to cover liabilities. However, the overall debt levels should be monitored for any potential increase.

Cash Flow

The cash flow statement indicates robust cash generation capabilities. Free Cash Flow has shown solid growth, and the Operating Cash Flow to Net Income Ratio is favorable, indicating efficient cash conversion. Free Cash Flow to Net Income Ratio is healthy, affirming strong cash retention after capital expenditures. The company should maintain this momentum to support future investments and dividends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.55B	1.43B	1.34B	1.25B	1.29B
Gross Profit	523.00M	478.40M	1.43B	1.34B	1.25B	1.29B
EBITDA	227.80M	155.00M	109.20M	63.50M	228.50M	198.20M
Net Income	140.10M	102.80M	45.00M	19.80M	170.40M	133.30M
Balance Sheet
Total Assets	14.73B	14.49B	14.05B	13.31B	14.38B	13.47B
Cash, Cash Equivalents and Short-Term Investments	5.49B	5.43B	5.49B	5.41B	6.72B	6.71B
Total Debt	547.50M	547.00M	546.00M	498.00M	502.60M	437.30M
Total Liabilities	7.63B	13.20B	12.87B	12.21B	12.58B	11.68B
Stockholders Equity	1.36B	1.29B	1.18B	1.10B	1.81B	1.79B
Cash Flow
Free Cash Flow	609.50M	452.10M	302.10M	171.50M	204.90M	259.80M
Operating Cash Flow	609.50M	452.10M	302.10M	171.50M	204.90M	259.80M
Investing Cash Flow	-120.60M	-135.80M	-107.40M	-214.60M	-302.00M	-406.76M
Financing Cash Flow	-462.60M	-307.90M	-207.80M	-47.80M	208.50M	143.78M

Horace Mann Educators Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 45.98 is above the 20-day moving average (MA) of 44.54, above the 50-day MA of 42.84, and above the 200-day MA of 41.05, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 67.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HMN.

Horace Mann Educators Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMN	82 Outperform	$1.87B	13.63	10.91%	3.00%	6.01%	72.52%
SAFT	81 Outperform	$1.10B	12.95	10.08%	4.86%	18.52%	65.66%
STC	78 Outperform	$2.04B	23.45	6.27%	2.75%	14.00%	100.44%
HCI	73 Outperform	$2.16B	14.77	23.90%	0.96%	9.62%	-18.69%
SKWD	73 Outperform	$1.96B	15.25	16.20%	―	22.20%	5.78%
Sector *	68 Neutral	$17.93B	11.86	10.28%	3.71%	9.75%	1.60%
ROOT	65 Neutral	$1.42B	19.40	27.52%	―	59.76%	―

Horace Mann Educators Corporate Events

Horace Mann Educators COO Steps Down August 2025

Stephen J. McAnena, Executive Vice President and Chief Operating Officer of Horace Mann Educators Corporation, has stepped down from his role effective August 10, 2025. He will remain with the company until March 1, 2026, to ensure a smooth transition, during which he will continue to receive his salary and benefits, and his equity awards will continue to vest according to their terms.

Horace Mann Educators Amends Credit Agreement with PNC

On May 19, 2025, Horace Mann Educators Corporation amended its Credit Agreement with PNC Bank, extending the commitment termination date to May 19, 2030, and replacing the Eurodollar-based interest rate benchmark with a Term SOFR Rate. This amendment, which includes a Term SOFR Rate adjustment, aims to enhance financial flexibility and stability, potentially impacting the company’s financial operations and stakeholder interests positively.