Horace Mann Educators (HMN) AI Stock Analysis

• Market Cap: $1.84B
• Dividend Yield: 3.07%
• Average Volume (3M): 240.37K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.24
• Revenue Growth: 5.44%
• EPS Growth: 58.05%
• Country: US
• Employees: 1,750
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.36
• Shares Outstanding: 40,684,967
• 10 Day Avg. Volume: 213,230
• 30 Day Avg. Volume: 240,369
• PEG Ratio: 0.12
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 3.58
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: 10.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.65
• Revenue Forecast (FY): $1.23B

• Rating: 78 Outperform
• Price Target: $52.00 ▲(12.87% 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 Business Overview & Revenue Model

Company Description

Horace Mann Educators Corporation (HMN) is an insurance and financial services company founded in 1945, primarily focused on serving educators and their families. The company operates through various segments, including property and casualty insurance, life insurance, retirement annuities, and investment products. HMN aims to provide financial security and peace of mind to the education community by offering tailored insurance solutions and retirement planning services.

How the Company Makes Money

Horace 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 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

• Technical Analysis Sentiment: Positive
• Last Price: 46.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 46.07 is above the 20-day moving average (MA) of 45.63, above the 50-day MA of 45.11, and above the 200-day MA of 42.80, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 42.35 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	78 Outperform	$1.84B	11.46	12.03%	3.07%	5.44%	58.05%
SAFT	75 Outperform	$1.12B	12.79	9.97%	4.84%	13.35%	16.56%
STC	74 Outperform	$1.93B	19.18	7.08%	2.63%	16.22%	69.80%
SKWD	74 Outperform	$1.93B	14.09	16.06%	―	22.51%	2.19%
HCI	73 Outperform	$2.30B	11.35	31.94%	0.91%	8.71%	17.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ROOT	66 Neutral	$1.22B	25.15	17.02%	―	38.50%	―

Horace Mann Educators Corporate Events

Horace Mann Reports Strong Q3 2025 Earnings

Horace Mann Educators Corporation is the largest multiline financial services company focused on providing tailored insurance and financial solutions to America’s educators and community service workers. In its latest earnings report, Horace Mann announced a strong financial performance for the third quarter of 2025, with net income reaching $58.3 million and record core earnings of $56.6 million. The company’s total revenue rose by 6%, driven by a 7% increase in net premiums and contract charges. Notably, the Property & Casualty segment showed significant improvement with a combined ratio of 87.8%. Horace Mann’s book value per share increased by 11.7%, reflecting the company’s robust financial health. The company has raised its full-year 2025 core EPS guidance to a range of $4.50 to $4.70, indicating confidence in continued growth and profitability. Looking ahead, Horace Mann remains committed to its strategy of delivering sustainable growth and value to shareholders, with a focus on empowering educators to achieve financial success.

Horace Mann Reports Record EPS and Raises Guidance

Horace Mann Educators’ recent earnings call showcased a highly positive sentiment, driven by record earnings per share (EPS), increased guidance, and strong performance across all segments. Despite minor setbacks such as decreased auto retention and elevated expenses due to growth investments, the company’s robust execution and strategic positioning were emphasized, leaving investors optimistic about its future trajectory.

Horace Mann Plans Redemption of Senior Notes

On September 29, 2025, Horace Mann Educators Corporation announced its intention to redeem all outstanding 4.500% Senior Notes due 2025, with the redemption set for October 14, 2025. This move is part of the company’s financial strategy, potentially impacting its financial obligations and market positioning by addressing its debt structure.

The most recent analyst rating on (HMN) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Horace Mann Educators stock, see the HMN Stock Forecast page.

Horace Mann Completes $300M Senior Notes Offering

On September 26, 2025, Horace Mann Educators Corporation completed a public offering of $300 million in 4.700% Senior Notes due 2030. The proceeds from this issuance will be used for general corporate purposes, including repaying existing debt. This move is part of Horace Mann’s strategy to manage its financial obligations and maintain its market position as a key financial services provider for educators.

The most recent analyst rating on (HMN) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Horace Mann Educators stock, see the HMN Stock Forecast page.

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.

The most recent analyst rating on (HMN) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Horace Mann Educators stock, see the HMN Stock Forecast page.

Horace Mann’s Earnings Call Highlights Growth and Challenges

The recent earnings call of Horace Mann Educators painted a largely positive picture, underscored by significant achievements such as a remarkable increase in core earnings, improved combined ratios, and robust sales in the Individual Supplemental segment. Despite these successes, the company acknowledged ongoing challenges in stabilizing auto policy growth and managing variability in the Group Benefits segment. Nevertheless, Horace Mann remains optimistic about meeting or even exceeding its 2025 financial goals.