Horace Mann Educators Corporation (HMN) Company Bio
Horace Mann Educators Corporation provides auto and homeowners insurance, retirement annuities, life insurance and other financial solutions to K-12 teachers, administrators, and other employees of public schools and their families. The company was founded in 1945 and is based in Springfield, Illinois.
HMN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HMN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Horace Mann Educators Corp ranked in the 48th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 12.5%. As for the metrics that stood out in our discounted cash flow analysis of Horace Mann Educators Corp, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 8.4; that's higher than 64.92% of US stocks in the Financial Services sector that have positive free cash flow.
The company's compound free cash flow growth rate over the past 5.75 years comes in at -0.02%; that's greater than just 22.37% of US stocks we're applying DCF forecasting to.
Horace Mann Educators Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 17.59% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PZN, SLF, WLTW, BGCP, and FCFS can be thought of as valuation peers to HMN, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Horace Mann Educators Corporation (NYSE:HMN) today announced it is giving all public school educators and school districts nationwide access to its Student Loan Solutions suite of student loan management resources, which includes guidance on how to successfully qualify for federal student loan forgiveness available to educators. These Student Loan Solutions accounts, powered by Tuition.io, are traditionally only offered through large private sector employers as an employee benefit.