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HMN Stock Analysis 2026 - HORACE MANN EDUCATORS CORP /DE/ AI Rating

HMN NYSE Fire, Marine & Casualty Insurance DE CIK: 0000850141
Recently Updated • Analysis: Apr 11, 2026 • SEC Data: 2025-12-31
BUY
72% Conf
Pending
Analysis scheduled

📊 HMN Key Takeaways

Revenue: $1.7B
Net Margin: 9.5%
Free Cash Flow: $553.2M
Current Ratio: N/A
Debt/Equity: 0.40x
EPS: $3.90
AI Rating: BUY with 72% confidence

Is HMN a Good Investment? Thesis Analysis

Claude

HMN demonstrates solid operational execution with 6.7% revenue growth and exceptional 57.3% EPS growth, driven by strong 32.5% free cash flow generation and 9.5% net margins. Manageable leverage (0.40x Debt/Equity) and robust operating cash flow of $553.2M support fundamental quality, though modest absolute returns (10.9% ROE) and tight cash position require monitoring.

Why Buy HMN? Key Strengths

Claude
  • + Exceptional free cash flow generation at 32.5% FCF margin with $553.2M annual operating cash flow
  • + Strong EPS growth of 57.3% YoY demonstrating operational leverage and earnings power
  • + Solid 6.7% revenue growth in mature insurance sector with conservative leverage at 0.40x Debt/Equity

HMN Investment Risks to Consider

Claude
  • ! Tight liquidity position with only $27.5M cash against $1.5B equity base
  • ! Modest absolute profitability metrics with 9.5% net margin and 10.9% ROE limiting shareholder returns
  • ! Insurance sector cyclicality exposure with potential for catastrophic loss years impacting underwriting margins

Key Metrics to Watch

Claude
  • * Loss ratio trends and underwriting profitability - critical metric for insurance companies
  • * Operating margin sustainability - currently 11.8%, need to confirm if durable
  • * Cash deployment strategy and dividend/buyback activity relative to strong free cash flow generation

HMN Financial Metrics

Revenue
$1.7B
Net Income
$162.1M
EPS (Diluted)
$3.90
Free Cash Flow
$553.2M
Total Assets
$15.3B
Cash Position
$27.5M

💡 AI Analyst Insight

The 32.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

HMN Profitability Ratios

Gross Margin N/A
Operating Margin 11.8%
Net Margin 9.5%
ROE 10.9%
ROA 1.1%
FCF Margin 32.5%

HMN vs Finance Sector

How HORACE MANN EDUCATORS CORP /DE/ compares to Finance sector averages

Net Margin
HMN 9.5%
vs
Sector Avg 25.0%
HMN Sector
ROE
HMN 10.9%
vs
Sector Avg 12.0%
HMN Sector
Current Ratio
HMN 0.0x
vs
Sector Avg 1.2x
HMN Sector
Debt/Equity
HMN 0.4x
vs
Sector Avg 2.0x
HMN Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is HMN Overvalued or Undervalued?

Based on fundamental analysis, HORACE MANN EDUCATORS CORP /DE/ has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
10.9%
Sector avg: 12%
Net Profit Margin
9.5%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.40x
Sector avg: 2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

HMN Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.40x
Debt/Assets
90.3%
Interest Coverage
5.53x
Long-term Debt
$593.4M

HMN 5-Year Financial Trend & Growth Analysis

HMN 5-year financial data: Year 2021: Revenue $1.4B, Net Income $184.4M, EPS $4.40. Year 2022: Revenue $1.4B, Net Income $133.3M, EPS $3.17. Year 2023: Revenue $1.5B, Net Income $49.1M, EPS $1.16. Year 2024: Revenue $1.6B, Net Income $19.8M, EPS $0.47. Year 2025: Revenue $1.7B, Net Income $45.0M, EPS $1.09.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: HORACE MANN EDUCATORS CORP /DE/'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.09 reflects profitable operations.

HMN Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
32.5%
Free cash flow / Revenue

HMN Quarterly Performance

Quarterly financial performance data for HORACE MANN EDUCATORS CORP /DE/ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $412.1M $34.3M $0.83
Q2 2025 $388.1M $3.8M $0.09
Q1 2025 $386.0M $26.5M $0.64
Q3 2024 $378.7M $5.5M $0.13
Q2 2024 $356.4M $3.8M $0.09
Q1 2024 $353.9M $6.6M $0.16
Q3 2023 $342.6M $5.5M $0.13
Q2 2023 $345.9M -$4.2M $-0.10

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

HMN Capital Allocation

Operating Cash Flow
$553.2M
Cash generated from operations
Stock Buybacks
$20.8M
Shares repurchased (TTM)
Dividends Paid
$57.1M
Returned to shareholders

HMN SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for HORACE MANN EDUCATORS CORP /DE/ (CIK: 0000850141)

📋 Recent SEC Filings

Date Form Document Action
Apr 6, 2026 DEF 14A hmn-20260406.htm View →
Apr 3, 2026 4 xslF345X06/marketforms-72865.xml View →
Mar 30, 2026 4 xslF345X06/marketforms-72780.xml View →
Mar 27, 2026 8-K hmn-20260327.htm View →
Mar 6, 2026 4 xslF345X05/marketforms-72418.xml View →

Frequently Asked Questions about HMN

What is the AI rating for HMN?

HORACE MANN EDUCATORS CORP /DE/ (HMN) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are HMN's key strengths?

Claude: Exceptional free cash flow generation at 32.5% FCF margin with $553.2M annual operating cash flow. Strong EPS growth of 57.3% YoY demonstrating operational leverage and earnings power.

What are the risks of investing in HMN?

Claude: Tight liquidity position with only $27.5M cash against $1.5B equity base. Modest absolute profitability metrics with 9.5% net margin and 10.9% ROE limiting shareholder returns.

What is HMN's revenue and growth?

HORACE MANN EDUCATORS CORP /DE/ reported revenue of $1.7B.

Does HMN pay dividends?

HORACE MANN EDUCATORS CORP /DE/ pays dividends, with $57.1M distributed to shareholders in the trailing twelve months.

Where can I find HMN SEC filings?

Official SEC filings for HORACE MANN EDUCATORS CORP /DE/ (CIK: 0000850141) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is HMN's EPS?

HORACE MANN EDUCATORS CORP /DE/ has a diluted EPS of $3.90.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is HMN a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, HORACE MANN EDUCATORS CORP /DE/ has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.

Is HMN stock overvalued or undervalued?

Valuation metrics for HMN: ROE of 10.9% (sector avg: 12%), net margin of 9.5% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

Should I buy HMN stock in 2026?

Our dual AI analysis gives HORACE MANN EDUCATORS CORP /DE/ a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is HMN's free cash flow?

HORACE MANN EDUCATORS CORP /DE/'s operating cash flow is $553.2M, with capital expenditures of N/A. FCF margin is 32.5%.

How does HMN compare to other Finance stocks?

Vs Finance sector averages: Net margin 9.5% (avg: 25%), ROE 10.9% (avg: 12%), current ratio N/A (avg: 1.2).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 11, 2026 | Data as of: 2025-12-31 | Powered by Claude AI