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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:82Outperform
Price Target:
$52.00
▲(14.59% 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
Revenue Growth
The company's robust revenue growth indicates strong sales performance and market demand, supporting long-term business expansion and stability.
Improved Profitability
Improved profitability reflects efficient cost management and operational effectiveness, contributing to sustainable financial health and shareholder value.
Financial Flexibility
The amended credit agreement provides enhanced financial flexibility, allowing the company to better manage capital and invest in growth opportunities.
Negative Factors
Historical Margin Volatility
Margin volatility suggests potential operational challenges, which may impact consistent profitability and require strategic adjustments to stabilize earnings.
Reliance on Debt
A higher reliance on debt can pose risks in volatile markets, potentially affecting financial stability and increasing interest obligations.
Leadership Change
Leadership changes can create uncertainty and may impact strategic direction and execution, affecting long-term business continuity and performance.
Horace Mann Educators (HMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.86B
Dividend Yield3.06%
Average Volume (3M)214.07K
Price to Earnings (P/E)13.6
Beta (1Y)0.32
Revenue Growth6.01%
EPS Growth72.52%
CountryUS
Employees1,750
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.07
Shares Outstanding40,695,730
10 Day Avg. Volume283,227
30 Day Avg. Volume214,070
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda10.25
Forecast
1Y Price Target
$49.00Price Target Upside7.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook with significant improvements in core earnings, increased guidance, and strong performance across multiple segments. Although there are some concerns about potential future catastrophe losses and a small decline in risks in force, the positive highlights significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Significant Increase in Core Earnings Per Share
Second quarter core earnings per share reached $1.06, a nearly threefold increase over the prior year.
Increase in Full Year 2025 Core EPS Guidance
The company increased its full-year 2025 core EPS guidance to a range of $4.15 to $4.45, reflecting strong first-half performance.
Improvement in Property and Casualty Segment
The Property and Casualty segment reported a combined ratio of 97%, a nearly 15-point improvement over the prior year, with core earnings of $17 million.
Record Sales in Individual Supplemental Segment
Second quarter sales in the Individual Supplemental segment reached $6 million, a 43% increase over the prior year, with year-to-date sales up over 50%.
Strong Performance in Life and Retirement Segment
Core earnings in the Life and Retirement segment doubled compared to last year, driven by higher net investment income and lower mortality costs.
Increased Website Traffic
Website traffic increased by 75% over the prior year, indicating successful lead generation and marketing efforts.
Strong Investment Returns
Limited partnership and commercial mortgage loan fund returns were significantly improved, with annualized returns of 10% and 7%, respectively.
Negative Updates
Decline in Risks in Force
There was a deceleration in the decline of risks in force, with the second quarter down less than 1% compared to the first quarter.
Uncertainty in Catastrophe Losses
Despite favorable second quarter results, there is caution around the potential for significant hurricane events in the second half of the year based on historical trends.
Company Guidance
In the Horace Mann Educators' Second Quarter 2025 Results Conference Call, the company reported a significant improvement in financial performance, with core earnings per share reaching $1.06, nearly tripling from the prior year. Total revenues increased by 6%, and net premiums and contract charges earned were up by 8%. The Property and Casualty segment saw a combined ratio improvement to 97%, with core earnings rising by $25 million from the previous year's segment loss. Catastrophe losses contributed 15 points to the combined ratio, reflecting an 8-point improvement from the previous year. The Life and Retirement segment also saw a doubling of core earnings, driven by higher net investment income and lower mortality costs. The Individual Supplemental and Group Benefits segment achieved record sales, with a 43% increase in second-quarter sales compared to the previous year. The company increased its full-year 2025 core EPS guidance to a range of $4.15 to $4.45, citing strong underlying business performance. Horace Mann aims for a 10% average compound annual growth rate in core EPS and a sustained 12% to 13% core return on equity by 2028, supported by strategic investments in technology and partnerships.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.75
Positive
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.70
Positive
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.80
Positive
| 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
Positive
45.38
Price Trends
44.16
Positive
43.06
Positive
41.30
Positive
Market Momentum
0.39
Positive
48.84
Neutral
18.03
Positive
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 45.38 is below the 20-day moving average (MA) of 46.08, above the 50-day MA of 44.16, and above the 200-day MA of 41.30, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 18.03 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.86B | 13.56 | 10.91% | 3.06% | 6.01% | 72.52% | |
80 Outperform | 1.07B | 12.61 | 8.54% | 5.08% | 18.52% | 65.66% | |
79 Outperform | 1.94B | 14.75 | 14.97% | ― | 22.20% | 5.78% | |
77 Outperform | 2.08B | 23.88 | 6.11% | 2.75% | 14.00% | 100.44% | |
73 Outperform | 2.33B | 15.94 | 24.25% | 0.89% | 9.62% | -18.69% | |
68 Neutral | 1.44B | 19.20 | 34.89% | ― | 59.76% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
HMN
Horace Mann Educators
45.38
10.98
31.92%
SAFT
Safety Insurance Group
71.20
-7.16
-9.14%
STC
Stewart Information Services
73.76
1.53
2.12%
HCI
HCI Group
180.43
74.04
69.59%
ROOT
Root
91.27
53.72
143.06%
SKWD
Skyward Specialty Insurance Group, Inc.
46.73
5.77
14.09%
Horace Mann Educators Corporate Events
Executive/Board Changes
Horace Mann Educators COO Steps Down August 2025
Neutral
Aug 13, 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.
Private Placements and FinancingBusiness Operations and Strategy
Horace Mann Educators Amends Credit Agreement with PNC
Positive
May 22, 2025
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.
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.