Horace Mann Educators Corp. (HMN)
NYSE:HMN
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Horace Mann Educators
(NYSE:HMN)
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Rating:75Outperform
Price Target:
$54.00
▲(18.92% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improved financial performance and a positive earnings update with reaffirmed guidance, stronger profitability, and continued capital returns. Supportive valuation (low P/E with a ~3% yield) adds to the appeal, while near-overbought technical signals and historical volatility in profits/cash flow keep the score from being higher.
Positive Factors
Improved Profitability
Sustained margin recovery and record quarterly core EPS demonstrate the business is generating more reliable underwriting and operating earnings. Higher margins and stronger core EPS provide a more durable earnings base that supports reinvestment in distribution and steadier capital returns over the medium term.
Negative Factors
Investment & Underwriting Volatility
Earnings remain exposed to market and investment performance as well as underwriting cycles. Variable LP returns, compressed annuity spreads, and commercial mortgage runoff can materially swing net income and reserving needs, reducing predictability of cash flow and ROE across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
Sustained margin recovery and record quarterly core EPS demonstrate the business is generating more reliable underwriting and operating earnings. Higher margins and stronger core EPS provide a more durable earnings base that supports reinvestment in distribution and steadier capital returns over the medium term.
Read all positive factors
Horace Mann Educators (HMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.89B
Dividend Yield3.01%
Average Volume (3M)252.62K
Price to Earnings (P/E)11.6
Beta (1Y)0.31
Revenue Growth5.46%
EPS Growth44.56%
CountryUS
Employees1,750
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.00
Shares Outstanding40,381,172
10 Day Avg. Volume330,917
30 Day Avg. Volume252,622
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.29
Price to Sales (P/S)1.18
P/FCF Ratio19.59
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda9.14
Forecast
1Y Price Target
$51.00Price Target Upside12.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.49
Revenue Forecast (FY)$1.28B
Horace Mann Educators Business Overview & Revenue Model
Company Description
Horace 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...
How the Company Makes Money
Horace Mann primarily generates revenue through its insurance and financial services operations. In its property & casualty business, it earns premiums from policies (such as auto and homeowners and other educator-focused coverages) and seeks to p...
Horace Mann Educators Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a largely positive tone driven by record quarterly core EPS (+20% YoY), strong multiline sales growth (life +17%, individual supplemental +11%), marked improvement in P&C profitability (combined ratio improvement of ~5 points and P&C earnings +46% YoY), meaningful capital returns, and progress on distribution and brand awareness. Notable challenges include a lagging California auto result, a higher auto combined ratio vs. property, some investment portfolio variability (LP returns and commercial mortgage loan runoff) that compressed the fixed annuity spread this quarter, and the inherently variable size of the Group Benefits business. Overall, the positive operational momentum and strong capital management outweigh the contained headwinds, with management maintaining guidance and multi-year targets.Positive Updates
Record Core EPS and Earnings Growth
Record first quarter core earnings per share of $1.28, up 20% year over year; core earnings of $53 million for the quarter.
Negative Updates
California Auto Profitability Lag
California remains the one state not yet at targeted profitability; the company has taken a conservative approach in the state which has weighed on overall auto growth (auto premiums essentially flat overall).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Core EPS and Earnings Growth
Record first quarter core earnings per share of $1.28, up 20% year over year; core earnings of $53 million for the quarter.
Read all positive updates
Company Guidance
Management reaffirmed 2026 core EPS guidance of $4.20–$4.50 and left the outlook unchanged after a strong Q1 (record core EPS $1.28 / $53M, +20% YoY), with trailing‑12‑month core ROE at 12.7% and continued confidence in the three‑year targets of 10% CAGR in core EPS and a sustainable 12%–13% shareholder ROE. They expect roughly a 25‑basis‑point reduction in the corporate expense ratio in 2026, will continue disciplined capital returns (Q1 returns totaled $33M, including ~$18M of buybacks — ≈420k shares — and $15M of dividends), and noted tangible book value per share was up 9% YoY. Management also signaled the quarter’s 1.34% fixed‑annuity spread should improve (core fixed‑income yield +23 bps YoY; new‑money yields 5.38%; LP returns ~7% vs. ~8% target) and emphasized that profitable growth in higher‑return lines (life sales +17%, individual supplemental +11%, group benefits sales tripled to $11M) underpins their confidence in meeting guidance.Horace Mann Educators Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.66B | 1.62B | 1.55B | 1.43B | 1.34B | 1.25B |
| Gross Profit | 693.50M | 572.00M | 478.40M | 356.80M | 332.50M | 409.00M |
| EBITDA | 267.70M | 264.70M | 189.60M | 109.20M | 63.50M | 242.40M |
| Net Income | 165.10M | 162.10M | 102.80M | 45.00M | 19.80M | 170.40M |
Balance Sheet | ||||||
| Total Assets | 14.97B | 15.27B | 14.49B | 14.05B | 13.31B | 14.38B |
| Cash, Cash Equivalents and Short-Term Investments | 497.50M | 634.50M | 513.30M | 5.49B | 5.41B | 6.72B |
| Total Debt | 593.80M | 593.40M | 547.00M | 546.00M | 498.00M | 502.60M |
| Total Liabilities | 13.50B | 13.78B | 13.20B | 12.87B | 12.21B | 12.58B |
| Stockholders Equity | 1.47B | 1.48B | 1.29B | 1.18B | 1.10B | 1.81B |
Cash Flow | ||||||
| Free Cash Flow | 473.70M | 98.00M | 452.10M | 302.10M | 171.50M | 204.90M |
| Operating Cash Flow | 473.70M | 98.00M | 452.10M | 302.10M | 171.50M | 204.90M |
| Investing Cash Flow | -200.80M | -75.90M | -135.80M | -107.40M | -214.60M | -302.00M |
| Financing Cash Flow | -282.30M | -21.70M | -307.90M | -207.80M | -47.80M | 208.50M |
Horace Mann Educators Technical Analysis
Positive
45.41
Price Trends
44.69
Positive
43.84
Positive
44.27
Positive
Market Momentum
0.58
Negative
55.26
Neutral
68.74
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 45.41 is below the 20-day moving average (MA) of 45.73, above the 50-day MA of 44.69, and above the 200-day MA of 44.27, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 68.74 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.99B | 5.82 | 32.64% | 0.82% | 22.11% | 90.84% | |
76 Outperform | $856.99M | 14.17 | 14.75% | ― | 22.83% | 2.00% | |
76 Outperform | $1.86B | 10.19 | 17.35% | ― | 28.95% | 37.60% | |
75 Outperform | $1.89B | 11.57 | 11.48% | 3.01% | 5.46% | 44.56% | |
69 Neutral | $2.07B | 15.73 | 8.36% | 2.88% | 21.30% | 69.50% | |
68 Neutral | $1.05B | 16.21 | 7.16% | 4.59% | 10.67% | -13.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HMN
Horace Mann Educators
46.35
4.40
10.48%
SAFT
Safety Insurance Group
70.47
-8.40
-10.65%
STC
Stewart Information Services
66.11
7.73
13.25%
HCI
HCI Group
154.54
-6.68
-4.15%
ROOT
Root
52.50
-72.82
-58.11%
SKWD
Skyward Specialty Insurance Group, Inc.
44.77
-17.18
-27.73%
Horace Mann Educators Corporate Events
Executive/Board ChangesShareholder Meetings
Horace Mann Shareholders Reelect Board, Affirm Governance Practices
Positive
May 21, 2026
At its Annual Meeting of Shareholders held on May 20, 2026, Horace Mann Educators Corporation shareholders elected nine directors, including Thomas A. Bradley and CEO Marita Zuraitis, with substantial majorities of votes cast in favor of each nomi...
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.