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HMNHorace Mann Educators Corporation
$51.60$2.1B
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Horace Mann Educators Corporation (HMN) Financial Ratios

Latest Ratios: P/E Ratio 13.2x · EV/EBITDA 11.6x · ROE 11.7%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

HMN Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.1B$1.9B$1.6B$1.4B$1.6B$1.6B$1.8B$1.8B$1.6B$1.8B$1.8B
Enterprise Value$2.7B$2.5B$2.1B$1.9B$2.0B$2.0B$2.2B$2.2B$1.9B$2.1B$2.0B
P/E Ratio →13.2311.8415.8230.0079.5111.4213.069.9285.1110.8121.19
P/S Ratio1.281.181.050.941.161.311.371.301.331.561.57
P/B Ratio1.451.301.261.151.420.900.991.171.221.221.37
P/FCF21.2619.603.604.489.117.976.8014.347.817.148.56
P/OCF21.2619.603.604.489.117.976.8014.347.817.148.56

P/E links to full P/E history page with 30-year chart

HMN EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.531.381.311.501.601.691.591.581.811.78
EV / EBITDA11.6110.9013.8223.5345.768.7611.928.8868.9722.2815.91
EV / EBIT13.1810.4713.1222.5456.218.9412.488.8857.0021.0915.91
EV / FCF—25.394.746.1911.779.778.4017.539.238.279.67

HMN Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin35.2%35.2%30.9%24.9%24.8%32.7%32.3%35.4%18.9%24.6%26.5%
Operating Margin12.4%12.4%8.3%3.7%1.2%16.8%12.4%16.8%1.7%7.6%10.1%
Net Profit Margin10.0%10.0%6.6%3.1%1.5%13.6%10.3%13.1%1.6%14.5%7.4%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE11.7%11.7%8.3%4.0%1.4%9.5%7.9%12.9%1.3%12.1%6.5%
ROA1.1%1.1%0.7%0.3%0.1%1.2%1.0%1.6%0.2%1.6%0.8%
ROIC7.8%7.8%5.5%2.5%0.7%7.2%5.7%10.0%0.9%4.0%5.7%
ROCE1.4%1.4%0.9%0.4%0.1%1.5%1.2%2.0%0.2%0.8%1.1%

HMN Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.400.400.420.460.450.280.240.280.230.200.19
Debt / EBITDA2.602.603.536.8711.292.202.391.7211.073.121.96
Net Debt / Equity—0.380.400.440.420.200.230.260.220.190.18
Net Debt / EBITDA2.482.483.326.5010.341.622.271.6210.633.041.83
Debt / FCF—5.791.141.712.661.801.603.191.421.131.11
Interest Coverage6.536.534.722.791.8516.1211.5016.152.508.4210.67

HMN Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio—————27.00—————
Quick Ratio—————27.00—————
Cash Ratio—————27.00—————
Asset Turnover—0.110.110.100.100.090.100.110.110.100.11
Inventory Turnover———————————
Days Sales Outstanding———————————

HMN Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield2.7%3.0%3.4%4.0%3.4%3.1%2.8%2.6%3.0%2.5%2.5%
Payout Ratio35.2%35.2%54.0%119.8%265.7%30.2%37.2%25.7%254.5%27.2%52.9%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield7.6%8.4%6.3%3.3%1.3%8.8%7.7%10.1%1.2%9.3%4.7%
FCF Yield4.7%5.1%27.8%22.3%11.0%12.5%14.7%7.0%12.8%14.0%11.7%
Buyback Yield1.0%1.1%0.5%0.5%1.5%0.3%0.1%0.0%0.3%0.1%1.2%
Total Shareholder Yield3.7%4.1%3.9%4.5%4.9%3.5%2.9%2.6%3.3%2.6%3.7%
Shares Outstanding—$42M$42M$41M$42M$42M$42M$42M$42M$42M$41M

Key Metrics

Growth RegimeStable
ProfitabilityModerate
Balance SheetHealthy
Cash FlowStable
Top Statement Risk

P&C underwriting margin volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Reflects Niche Market Constraints

Based on recent market data, HMN trades at a P/B of 1.45, which appears to discount the firm relative to higher-ROE peers like Globe Life, suggesting investors remain cautious regarding the company's ability to consistently generate underwriting profits above its cost of capital in the current environment.

The current P/B multiple indicates that the market is not yet pricing in a significant premium for the company's exclusive educator distribution moat. This valuation suggests that investors are waiting for more sustained evidence of underwriting stability before assigning a higher multiple, as the current ROE levels remain modest compared to broader industry benchmarks.

Combined Ratio Volatility Warrants Caution

As reported in quarterly filings, the combined ratio has exhibited significant variance, peaking at 98.8% in 2024Q2 before recovering to 89.1% by 2025Q4, which highlights the inherent sensitivity of the P&C segment to inflationary pressures and unpredictable claims activity within the educator-focused policyholder base.

The fluctuation in the combined ratio suggests that while the company possesses a unique distribution advantage, it remains vulnerable to external cost shocks in auto and property lines. The improvement toward the end of 2025 indicates successful rate implementation, yet the historical volatility implies that underwriting profitability may remain inconsistent without further structural margin expansion.

Conservative Leverage Preserves Capital Flexibility

According to the provided balance sheet data, the company maintains a stable debt-to-equity ratio of 0.40, which appears to provide a significant buffer against potential underwriting shocks and supports the firm's ability to navigate periods of economic uncertainty without compromising its core capital position.

This low leverage profile is a hallmark of the company's conservative capital allocation strategy, prioritizing balance sheet strength over aggressive growth. Such a position is prudent given the volatility observed in the P&C underwriting results, as it ensures that the firm can absorb adverse reserve development without requiring external financing.

Misapplication of Headline ROE Metrics

Investors frequently misapply headline ROE to evaluate this insurer, failing to adjust for the volatility introduced by reserve development and the cyclical nature of P&C underwriting, which can obscure the underlying quality of the company's core insurance operations and its long-term earnings power.

Relying solely on ROE without adjusting for underwriting volatility can lead to a distorted view of performance, as periodic reserve releases or charges can artificially inflate or depress returns. A more accurate assessment would involve analyzing the operating ROE, which isolates underwriting profitability from investment income and one-time accounting adjustments.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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HMN — Frequently Asked Questions

Quick answers to the most common questions about buying HMN stock.

What is Horace Mann Educators Corporation's P/E ratio?

Horace Mann Educators Corporation's current P/E ratio is 13.2x. The historical average is 22.2x. This places it at the 43th percentile of its historical range.

What is Horace Mann Educators Corporation's EV/EBITDA?

Horace Mann Educators Corporation's current EV/EBITDA is 11.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.5x.

What is Horace Mann Educators Corporation's ROE?

Horace Mann Educators Corporation's return on equity (ROE) is 11.7%. The historical average is 8.9%.

Is HMN stock overvalued?

Based on historical data, Horace Mann Educators Corporation is trading at a P/E of 13.2x. This is at the 43th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Horace Mann Educators Corporation's dividend yield?

Horace Mann Educators Corporation's current dividend yield is 2.66% with a payout ratio of 35.2%.

What are Horace Mann Educators Corporation's profit margins?

Horace Mann Educators Corporation has 35.2% gross margin and 12.4% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Horace Mann Educators Corporation have?

Horace Mann Educators Corporation's Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.