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Horace Mann Educators Corp. (HMN)
NYSE:HMN
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Horace Mann Educators
(NYSE:HMN)
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Rating:78Outperform
Price Target:
$52.00
▲(15.10% Upside)
Horace Mann Educators receives a strong overall score driven by solid financial performance, attractive valuation, and a highly positive earnings call. The company's strategic initiatives and robust execution further bolster its position, despite minor challenges in auto retention and elevated expenses.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Cash Flow Management
Strong cash flow management enhances liquidity and operational flexibility, ensuring the company can invest in growth opportunities.
Strategic Partnerships
Strategic partnerships enhance brand engagement and customer acquisition, strengthening market position in the education sector.
Negative Factors
Decreased Auto Retention
Decreased auto retention may indicate customer dissatisfaction or competitive pressures, potentially impacting future revenue stability.
Elevated Expense Levels
Higher expenses due to growth investments could pressure margins, affecting short-term profitability and requiring careful cost management.
Equity Structure
A relatively low equity ratio suggests limited financial buffer, which could constrain the company's ability to absorb financial shocks.
Horace Mann Educators (HMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.84B
Dividend Yield3.01%
Average Volume (3M)252.62K
Price to Earnings (P/E)11.4
Beta (1Y)0.24
Revenue Growth5.44%
EPS Growth58.05%
CountryUS
Employees1,750
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.36
Shares Outstanding40,684,967
10 Day Avg. Volume330,917
30 Day Avg. Volume252,622
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.26
Price to Sales (P/S)1.02
P/FCF Ratio3.58
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit4.87
Enterprise Value/Ebitda10.23
Forecast
1Y Price Target
$48.00Price Target Upside6.24% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through the sale of insurance policies, which include property and casualty insurance, life insurance, and annuities. The company earns premiums from policyholders, which constitute a key revenue stream. Additionally, HMN generates income from investment products, where it invests the premiums received until claims are paid. The company also benefits from fees associated with managing retirement plans and investment products. Significant partnerships with educational institutions and organizations enhance its market reach and customer base, contributing to its overall earnings.
Horace Mann Educators Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call presented a very strong performance with record EPS, increased guidance, strong segment performances, and significant strategic growth initiatives. Despite minor challenges such as decreased auto retention and elevated expenses due to growth investments, the overall sentiment is highly positive due to the company's robust execution and strategic positioning.Q3-2025 Updates
Positive Updates
Record Third Quarter Core EPS
Horace Mann reported record third quarter core EPS of $1.36, a 64% increase over the prior year.
Significant Increase in Full Year Core EPS Guidance
The company raised its full year core EPS guidance to a range of $4.50 to $4.70.
Strong Performance Across All Segments
Business profitability across all segments is in line with or above target levels, with total revenues for the quarter up 6% and net premiums and contract charges earned up over 7%.
Growth in Supplemental and Group Benefits Segment
Individual supplemental sales increased by 40%, and Group Benefits sales nearly doubled in the quarter.
Decreased Catastrophe Losses
Pretax catastrophe losses year-to-date were $56 million compared to $91 million last year, reflecting lighter severe weather activity.
Strategic Partnerships and Brand Engagement
New partnerships with Teach for America and Grand Canyon University, and increased brand awareness through events like Crayola Creativity Week.
Shareholder Value Creation
The company returned $20 million of capital to shareholders through share repurchases and $43 million through dividends.
Negative Updates
Decreased Household Retention in Auto
Household retention in auto decreased to 84% from the prior period.
Elevated Expense Levels
Expense levels are expected to be elevated in the near term as the company invests in growth and builds scale.
Company Guidance
In the third quarter of 2025, Horace Mann Educators achieved a record core EPS of $1.36, marking a 64% increase from the previous year. The company reported a 13.8% trailing 12-month core return on equity and increased its full-year core EPS guidance to a range of $4.50 to $4.70. Total revenues grew by 6% year-over-year, with net premiums and contract charges earned rising over 7%. The Supplemental and Group Benefits segment saw individual supplemental sales rise by 40%, while Group Benefits sales nearly doubled. Property and Casualty performance was strong, with a total combined ratio of 91.4% and an auto combined ratio of 96.4%, both aligning with targets. Property profitability was notable, with a combined ratio of 83.1%, well below the target of 90%. Year-to-date pretax catastrophe losses were $56 million, compared to $91 million the previous year. Life and Retirement segments benefited from strong net investment income, with the core new money yield exceeding book yield by more than 100 basis points. Horace Mann also focused on strategic investments, boosting brand engagement in the education sector and enhancing digital lead generation, which saw website visits increase by 120% year-over-year. The company remains committed to a 10% compound annual growth rate in core EPS and maintaining a 12% to 13% core return on equity by 2028.Horace Mann Educators Financial Statement Overview
Summary
Horace Mann Educators presents a solid financial performance with consistent revenue growth and strong profitability metrics. The balance sheet reflects a stable financial position with manageable leverage, while cash flow metrics highlight effective cash management. Continued focus on operational efficiency and equity strengthening could further enhance financial health.Income Statement
Horace Mann Educators shows a consistent revenue growth trend with a TTM revenue growth rate of 2.59%. The company maintains a healthy gross profit margin of 50.50% and a net profit margin of 8.74% in the TTM period, indicating strong profitability. However, the EBIT and EBITDA margins, while positive, suggest room for improvement in operational efficiency.Balance Sheet
The company's debt-to-equity ratio of 0.40 in the TTM period reflects a moderate level of leverage, which is manageable. Return on equity stands at 10.62%, showcasing effective use of equity to generate profits. The equity ratio of 9.30% indicates a stable financial structure, though there is potential to strengthen equity further.Cash Flow
Horace Mann Educators demonstrates strong cash flow management with a free cash flow growth rate of 119.80% in the TTM period. The free cash flow to net income ratio of 1.0 indicates efficient conversion of net income into free cash flow, supporting liquidity and operational flexibility.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.60B | 1.55B | 1.43B | 1.34B | 1.25B | 1.29B |
| Gross Profit | 558.50M | 478.40M | 356.80M | 332.50M | 409.00M | 416.10M |
| EBITDA | 266.10M | 189.60M | 109.20M | 63.50M | 242.40M | 198.20M |
| Net Income | 164.10M | 102.80M | 45.00M | 19.80M | 170.40M | 133.30M |
Balance Sheet | ||||||
| Total Assets | 15.49B | 14.49B | 14.05B | 13.31B | 14.38B | 13.47B |
| Cash, Cash Equivalents and Short-Term Investments | 674.90M | 513.30M | 5.49B | 5.41B | 6.72B | 6.71B |
| Total Debt | 842.90M | 547.00M | 546.00M | 498.00M | 502.60M | 437.30M |
| Total Liabilities | 14.05B | 13.20B | 12.87B | 12.21B | 12.58B | 11.68B |
| Stockholders Equity | 1.44B | 1.29B | 1.18B | 1.10B | 1.81B | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 616.80M | 452.10M | 302.10M | 171.50M | 204.90M | 259.80M |
| Operating Cash Flow | 616.80M | 452.10M | 302.10M | 171.50M | 204.90M | 259.80M |
| Investing Cash Flow | -239.00M | -135.80M | -107.40M | -214.60M | -302.00M | -406.76M |
| Financing Cash Flow | -115.10M | -307.90M | -207.80M | -47.80M | 208.50M | 143.78M |
Horace Mann Educators Technical Analysis
Negative
45.18
Price Trends
45.27
Negative
45.07
Positive
43.12
Positive
Market Momentum
0.30
Positive
43.84
Neutral
36.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HMN, the sentiment is Negative. The current price of 45.18 is below the 20-day moving average (MA) of 45.71, below the 50-day MA of 45.27, and above the 200-day MA of 43.12, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.97B | 14.39 | 16.06% | ― | 22.51% | 2.19% | |
78 Outperform | $2.38B | 11.74 | 31.94% | 0.82% | 8.71% | 17.26% | |
78 Outperform | $1.84B | 11.45 | 12.03% | 3.01% | 5.44% | 58.05% | |
75 Outperform | $1.13B | 12.86 | 9.97% | 4.59% | 13.35% | 16.56% | |
74 Outperform | $2.09B | 19.48 | 7.08% | 2.88% | 16.22% | 69.80% | |
70 Neutral | $1.10B | 22.74 | 17.02% | ― | 38.50% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HMN
Horace Mann Educators
45.18
8.58
23.44%
SAFT
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75.71
-1.11
-1.44%
STC
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69.99
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9.50%
HCI
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183.89
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62.95%
ROOT
Root
70.90
-6.55
-8.46%
SKWD
Skyward Specialty Insurance Group, Inc.
48.62
3.53
7.83%
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.