Horace Mann Educators Corp (HMN, Financial) has recently witnessed a notable uptick in its stock performance. With a current market capitalization of $1.5 billion, the company's stock price stands at $36.81, reflecting a 2.82% gain over the past week and an 11.55% gain over the past three months. This positive trajectory is further underscored by the GF Value of $41.13, which suggests that the stock is modestly undervalued compared to its past GF Value of $40.71. The consistent modest undervaluation over time indicates potential for investors.
Understanding Horace Mann Educators Corp
Horace Mann Educators Corp operates within the insurance industry, providing a range of insurance and financial solutions. The company specializes in personal lines of property and casualty insurance, retirement annuities, and life insurance, with a focus on the educational sector. Its target market includes K-12 teachers, administrators, and public school employees, offering products tailored to their unique needs. Horace Mann leverages a salesforce that includes former educators, which enhances its connection with its core customer base. The company's business segments include Property and Casualty, Supplemental & Group Benefits, Life & Retirement, and Corporate and Other.
Profitability Insights
Horace Mann's Profitability Rank stands at 5/10, indicating a moderate level of profitability. The company's Return on Equity (ROE) is currently at -3.08%, which, despite being negative, is better than 13.64% of the industry. Similarly, its Return on Assets (ROA) of -0.25% and Return on Invested Capital (ROIC) of -0.11% are also better than 14.93% and 16.43% of the industry, respectively. Over the past decade, Horace Mann has maintained profitability for 9 years, outperforming 51.9% of its peers.
Growth Trajectory
The company's Growth Rank is currently at 3/10, reflecting some challenges in its growth metrics. Horace Mann's 3-Year Revenue Growth Rate per Share is -1.40%, which is still better than 30.16% of the industry. The 5-Year Revenue Growth Rate per Share shows a slight improvement at 2.10%, surpassing 34.43% of the industry. However, the 3-Year and 5-Year EPS without NRI Growth Rates are -81.50% and -41.30%, respectively, which are concerning but still outperform a small fraction of the industry.
Top Shareholders
Horace Mann's stock is held by notable investors, with HOTCHKIS & WILEY leading the pack, holding 978,545 shares, which translates to a 2.4% share percentage. Following closely is Steven Scruggs (Trades, Portfolio), who owns 440,798 shares, accounting for 1.08% of the company. John Rogers (Trades, Portfolio) also holds a significant stake with 340,981 shares, representing 0.83% of Horace Mann.
Competitive Landscape
In comparison to its competitors, Horace Mann holds its ground with a market cap of $1.5 billion. Its closest competitors include Palomar Holdings Inc (PLMR, Financial) with a market cap of $1.51 billion, Skyward Specialty Insurance Group Inc (SKWD, Financial) at $1.25 billion, and Safety Insurance Group Inc (SAFT, Financial) closely behind at $1.24 billion. This competitive positioning highlights Horace Mann's stable standing within the insurance industry.
Conclusion: Assessing Horace Mann's Market Position
In summary, Horace Mann Educators Corp's recent stock price increase can be attributed to its modest undervaluation as indicated by the GF Value, alongside a stable profitability track record. Despite facing growth challenges, the company's better-than-industry performance in key profitability metrics and its strategic focus on the educational sector provide a solid foundation for potential growth. With its market position relative to competitors and the backing of significant shareholders, Horace Mann presents an interesting case for value investors looking for opportunities in the insurance sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
