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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 56.6GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.8%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.08%
Trailing Yield
$3.08
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
34%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, HORACE MANN EDUCATORS CORP /DE/ (HMN) receives a "Hold" rating with a composite score of 53.1/100, ranked #208 out of 4446 stocks. Key factor scores: Quality 57/100, Value 79/100, Momentum 39/100. This is quantitative analysis only — not investment advice.
HORACE MANN EDUCATORS CORP /DE/ (HMN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does HORACE MANN EDUCATORS CORP /DE/ Do?
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 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. HORACE MANN EDUCATORS CORP /DE/ (HMN) is classified as a small-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Marita Zuraitis and employs approximately 1,450 people, headquartered in SPRINGFIELD, Illinois. With a market capitalization of $1.7B, HMN is one of the notable companies in the Financials sector.
HORACE MANN EDUCATORS CORP /DE/ (HMN) Stock Rating — Hold (April 2026)
As of April 2026, HORACE MANN EDUCATORS CORP /DE/ receives a Hold rating with a composite score of 53.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.HMN ranks #208 out of 4,446 stocks in our coverage universe. Within the Financials sector, HORACE MANN EDUCATORS CORP /DE/ ranks #79 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
HMN Stock Price and 52-Week Range
HORACE MANN EDUCATORS CORP /DE/ (HMN) currently trades at $44.12. The stock lost $0.91 (2.0%) in the most recent trading session. The 52-week high for HMN is $48.33, which means the stock is currently trading -8.7% from its annual peak. The 52-week low is $38.76, putting the stock 13.8% above its annual trough. Recent trading volume was 28K shares, suggesting relatively thin trading activity.
Is HMN Overvalued or Undervalued? — Valuation Analysis
HORACE MANN EDUCATORS CORP /DE/ (HMN) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.08x, compared to the Financials sector average of 14.88x — a discount of 26%. The price-to-book ratio stands at 1.20x, versus the sector average of 1.22x. The price-to-sales ratio is 1.06x, compared to 0.90x for the average Financials stock. On an enterprise value basis, HMN trades at 2.22x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, HORACE MANN EDUCATORS CORP /DE/ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
HORACE MANN EDUCATORS CORP /DE/ Profitability — ROE, Margins, and Quality Score
HORACE MANN EDUCATORS CORP /DE/ (HMN) earns a quality factor score of 57/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.8%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, HORACE MANN EDUCATORS CORP /DE/ reports gross margins of 0.0%. The operating margin is 63.2% (sector: 21.8%). Net profit margin stands at 9.5%, versus 17.7% for the average Financials stock. Revenue growth is running at 13.0% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
HMN Debt, Balance Sheet, and Financial Health
HORACE MANN EDUCATORS CORP /DE/ has a debt-to-equity ratio of 40.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $593M. Cash and equivalents stand at $47M.
HMN has a beta of 0.31, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for HORACE MANN EDUCATORS CORP /DE/ is 94/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
HORACE MANN EDUCATORS CORP /DE/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, HORACE MANN EDUCATORS CORP /DE/ reported revenue of $1.68B and earnings per share (EPS) of $3.93. Net income for the quarter was $160M. Gross margin was 0.0%. Operating income came in at $1.07B.
In FY 2025, HORACE MANN EDUCATORS CORP /DE/ reported revenue of $1.70B and earnings per share (EPS) of $3.93. Net income for the quarter was $162M. Revenue grew 6.7% year-over-year compared to FY 2024. Operating income came in at $1.37B.
In Q3 2025, HORACE MANN EDUCATORS CORP /DE/ reported revenue of $439M and earnings per share (EPS) of $1.42. Net income for the quarter was $58M. Revenue grew 6.4% year-over-year compared to Q3 2024. Operating income came in at $355M.
In Q2 2025, HORACE MANN EDUCATORS CORP /DE/ reported revenue of $412M and earnings per share (EPS) of $0.71. Net income for the quarter was $29M. Revenue grew 6.1% year-over-year compared to Q2 2024. Operating income came in at $330M.
Over the past 8 quarters, HORACE MANN EDUCATORS CORP /DE/ has demonstrated a growth trajectory, with revenue expanding from $388M to $1.68B. Investors analyzing HMN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
HMN Dividend Yield and Income Analysis
HORACE MANN EDUCATORS CORP /DE/ (HMN) currently pays a dividend yield of 3.1%. At this yield, a $10,000 investment in HMN stock would generate approximately $$308.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning HMN offers above-average income for its sector. The net margin of 9.5% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
HMN Momentum and Technical Analysis Profile
HORACE MANN EDUCATORS CORP /DE/ (HMN) has a momentum factor score of 39/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 22/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
HMN vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing HMN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HMN vs S&P 500 (SPY) comparison to assess how HORACE MANN EDUCATORS CORP /DE/ stacks up against the broader market across all factor dimensions.
HMN Next Earnings Date
No upcoming earnings date has been announced for HORACE MANN EDUCATORS CORP /DE/ (HMN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy HMN? — Investment Thesis Summary
HORACE MANN EDUCATORS CORP /DE/ presents a balanced picture with arguments on both sides. The value score of 79/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 39/100, a headwind for near-term performance. Low volatility (stability score 94/100) reduces downside risk.
In summary, HORACE MANN EDUCATORS CORP /DE/ (HMN) earns a Hold rating with a composite score of 53.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HMN stock.
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Institutional Research Dossier
HORACE MANN EDUCATORS CORP /DE/ (HMN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Horace Mann Educators Corporation (HMN) receives a Hold rating, reflecting a balanced view of its strengths and weaknesses. The company's focus on the education market provides a niche, but its financial performance is mixed, with strong operating margins offset by negative free cash flow. While the valuation appears attractive based on P/E and EV/EBITDA relative to the sector, concerns about capital allocation and growth prospects temper enthusiasm.
The company's stability, as indicated by a high stability score, is a positive attribute, particularly in volatile markets. However, the low investment score and negative free cash flow raise questions about its long-term growth potential and capital deployment strategies. A neutral stance is warranted until there is evidence of improved capital allocation and a return to positive free cash flow generation.
Business Strategy & Overview
Horace Mann operates as an insurance holding company, primarily serving the K-12 education market in the United States. Its core business revolves around providing insurance and retirement solutions tailored to educators and their families. The company's strategy centers on building strong relationships with educators through a dedicated sales force of full-time exclusive agents. This targeted approach allows Horace Mann to understand the specific needs of its customer base and offer customized products.
The company's revenue streams are diversified across three segments: Property & Casualty, Life & Retirement, and Supplemental & Group Benefits. Property & Casualty includes auto and property insurance, while Life & Retirement offers annuities and life insurance products. Supplemental & Group Benefits provides additional coverage options like cancer, heart, and disability insurance. This diversification helps mitigate risk and provides multiple avenues for growth.
Horace Mann's strategic positioning within the education market provides a degree of insulation from broader economic cycles. Educators represent a relatively stable customer base, which can lead to consistent demand for insurance and retirement products. The company's long-standing presence in this market has allowed it to build brand recognition and trust among educators.
The company also offers student loan solutions, including online student loan management accounts for educators. This offering complements its existing suite of products and services and further strengthens its relationship with educators. By providing comprehensive financial solutions, Horace Mann aims to become a trusted partner for educators throughout their careers.
However, the company faces competition from larger, more diversified insurance companies that may have greater resources and broader product offerings. To maintain its competitive edge, Horace Mann must continue to innovate and adapt its products and services to meet the evolving needs of educators. The company's ability to effectively manage its expenses and maintain profitability will also be crucial for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
13.0%
Sector: 9.4%
+38% VS SCTR
Economic Moat Analysis
Horace Mann's economic moat can be classified as Narrow. The company possesses some competitive advantages, primarily stemming from its niche focus on the education market and its established distribution network of exclusive agents. This specialization allows Horace Mann to develop a deep understanding of the needs of educators and tailor its products and services accordingly.
The dedicated sales force of full-time exclusive agents represents a significant investment and creates a barrier to entry for competitors. These agents have built relationships with educators over time, fostering trust and loyalty. This personal connection can be difficult for larger, more diversified insurance companies to replicate.
However, the moat is not particularly wide due to the relatively low switching costs for insurance products. Educators can easily compare prices and coverage options from different providers, which limits Horace Mann's pricing power. The insurance industry is highly competitive, with numerous players vying for market share.
While Horace Mann has built brand recognition within the education market, its brand is not as strong as some of the larger, more established insurance companies. This limits its ability to command premium prices or attract new customers solely based on brand reputation.
The company does not appear to possess significant cost advantages or efficient scale. Its operating margin, while high compared to the sector, is largely driven by its revenue mix and expense management rather than inherent cost efficiencies. The negative free cash flow suggests potential challenges in generating sustainable cash flow from its operations.
Overall, Horace Mann's narrow moat provides some protection from competition, but it is not insurmountable. The company must continue to innovate and differentiate its products and services to maintain its competitive edge and prevent erosion of its market share.
Financial Health & Profitability
Horace Mann's financial health presents a mixed picture. The company has demonstrated revenue growth, with TTM revenue of $1.70 billion, representing a 13.0% increase compared to the sector average of 9.3%. This growth is a positive sign, indicating the company's ability to expand its market share and generate increased sales.
The company's operating margin is exceptionally high at 63.2%, significantly exceeding the sector average of 22.0%. This suggests efficient expense management and a favorable revenue mix. However, the net margin of 9.5% is lower than the sector average of 17.8%, indicating that the company may be facing higher interest expenses or other non-operating costs.
The company's ROE of 10.8% is higher than the sector average of 8.5%, suggesting that it is effectively utilizing equity to generate profits. However, the negative free cash flow of -$392.20 million is a significant concern. This indicates that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows.
The company's balance sheet shows total debt of $593.40 million and total cash of $46.70 million. The debt-to-equity ratio is 40.00, which is significantly lower than the sector average of 115.00. This suggests that the company is less leveraged than its peers. The current ratio of 1.11 indicates that the company has sufficient current assets to cover its current liabilities.
Looking at the quarterly financial history, the company's operating margin has fluctuated significantly. In FY2025, the operating margin has been consistently high, ranging from 80.0% to 81.5%. However, in FY2024, the operating margin was much lower, particularly in Q2 and Q3. This volatility suggests that the company's profitability is sensitive to changes in its revenue mix and expense management.
Overall, Horace Mann's financial health is characterized by strong revenue growth and high operating margins, but also by negative free cash flow and fluctuating profitability. The company needs to address its cash flow issues and maintain its profitability to ensure its long-term financial stability.
Valuation Assessment
Horace Mann's valuation presents an interesting case, appearing relatively attractive compared to its peers based on certain metrics, but with caveats. The company's P/E ratio of 10.6x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 0.4x is substantially lower than the sector average of 3.5x, further indicating potential undervaluation.
However, these seemingly low multiples must be considered in the context of the company's financial performance and growth prospects. While the company has demonstrated revenue growth, its negative free cash flow raises concerns about its ability to generate sustainable cash flow. This could justify a lower valuation multiple compared to companies with stronger cash flow generation.
The company's ROE of 10.8% is higher than the sector average, which could support a higher valuation. However, the lower net margin compared to the sector suggests that the company's earnings quality may be lower. This could also justify a lower valuation multiple.
The BCR proprietary quant model assigns a Value score of 79/100, which supports the notion that the stock is undervalued. However, the Investment score of 28/100 suggests that the market has concerns about the company's capital allocation and growth prospects. This could be due to the negative free cash flow and the fluctuating profitability.
Given the mixed signals from the valuation metrics and the financial performance, it is difficult to definitively conclude whether the stock is cheap, fair, or expensive. The low P/E and EV/EBITDA ratios suggest potential undervaluation, but the negative free cash flow and concerns about capital allocation warrant caution.
A fair valuation would likely be somewhere between the current market price and a price that reflects the company's long-term growth potential and cash flow generation. Until the company demonstrates a consistent ability to generate positive free cash flow and improve its capital allocation, a neutral valuation stance is warranted.
Risk & Uncertainty
Horace Mann faces several specific risks that could impact its business and financial performance. One significant risk is the concentration of its customer base in the education market. Any adverse trends affecting the education sector, such as budget cuts or declining enrollment, could negatively impact the demand for Horace Mann's products and services.
Competition from larger, more diversified insurance companies poses another risk. These companies may have greater resources and broader product offerings, allowing them to compete more effectively for market share. Horace Mann must continue to innovate and differentiate its products and services to maintain its competitive edge.
Regulatory changes in the insurance industry could also impact Horace Mann's business. Changes in regulations related to pricing, underwriting, or capital requirements could increase the company's costs and reduce its profitability. The company must stay abreast of regulatory developments and adapt its business practices accordingly.
The company's reliance on its exclusive agent network also presents a risk. Any decline in the productivity or retention of its agents could negatively impact its sales and profitability. Horace Mann must invest in training and support for its agents to ensure their continued success.
Finally, the company's negative free cash flow is a significant risk. If the company is unable to generate positive free cash flow in the future, it may need to raise additional capital, which could dilute existing shareholders. The company must address its cash flow issues to ensure its long-term financial stability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWHorace Mann's focus on the stable education market provides a consistent customer base and insulates it from broader economic downturns.
BULL VIEWThe company's high operating margin demonstrates efficient expense management and strong profitability within its niche market.
BULL VIEWHMN's low P/E and EV/EBITDA ratios suggest the stock is undervalued, offering potential upside as the market recognizes its niche strength.
The Bear Case
BEAR VIEWHorace Mann's negative free cash flow raises concerns about its long-term financial sustainability and ability to fund future growth.
BEAR VIEWThe company's narrow moat and reliance on a dedicated agent network make it vulnerable to competition from larger, more diversified insurance companies.
BEAR VIEWHMN's low Investment score indicates concerns about capital allocation and growth prospects, potentially limiting future returns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score HMN and 4,400+ other equities.
HORACE MANN EDUCATORS CORP /DE/ exhibits a 10% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
63.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
9.5%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+24%
Income Projection audit
A $10,000 investment would generate approximately $308 annually in dividends at the current trailing rate.
