A Look At Horace Mann Educators (HMN) Valuation After Launch Of No Cost Horace Mann Club
Horace Mann Club launch puts educator relationships in focus
Horace Mann Educators (HMN) has launched the Horace Mann Club, a no cost program offering educators nationwide benefits like wellness partnerships, financial tools, classroom resources, and professional development opportunities.
This service expansion is directly aimed at deepening engagement with the company’s core customer base. This may matter for investors tracking how product ecosystems support retention and cross selling in education focused insurance and financial solutions.
See our latest analysis for Horace Mann Educators.
At a share price of $43.43, Horace Mann Educators has posted a 2.3% 30 day share price return and a 2% 7 day gain, while the 1 year total shareholder return sits at 8.8% and the 3 year total shareholder return at 32.4%, pointing to steadier long term momentum despite a weaker 90 day share price patch.
If this educator focused story has you thinking about longer term themes, it could be a good moment to check out our 22 top founder-led companies as another way to source ideas.
With the stock at $43.43, trading about 14% below the average analyst target and coming off a 3 year total return of 32.4%, you have to ask: is there still upside here, or is the market already pricing in future growth?
Most Popular Narrative: 12.6% Undervalued
With Horace Mann Educators at $43.43 and the most followed fair value estimate at $49.67, the narrative points to a meaningful valuation gap that leans on specific growth and margin assumptions.
Ongoing expansion of digital engagement platforms and proprietary technology solutions (such as the Catalyst lead management system) are improving agent productivity and making it easier for educators to engage, likely to drive increased policy sales, higher customer conversion rates, and improved customer retention, positively impacting both revenue growth and net margins.
Curious what level of revenue growth and profit margins are needed to support that higher value, and how a lower future P/E still fits the story? The full narrative lays out the exact earnings path that needs to materialize.
Result: Fair Value of $49.67 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on educators remaining a resilient customer base and catastrophe losses staying within modeled ranges, both of which could pressure margins if they turn less favorable.
Find out about the key risks to this Horace Mann Educators narrative.
Another View: Cash Flows Paint A Tougher Picture
There is a twist when you look at Horace Mann Educators through the SWS DCF model. At $43.43, the shares sit well above an estimated future cash flow value of $27.52. This points to the stock screening as overvalued on this framework. So which story do you put more weight on, earnings power or cash flows?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Horace Mann Educators for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
The mixed signals on value and cash flows make this a good moment to look under the hood yourself, act while the facts are fresh, and see how our 5 key rewards lines up with your own view.
Ready for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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