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Horace Mann Educators (Horace Mann Educators) Forward Rate of Return (Yacktman) % : 4.40% (As of Dec. 2023)


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What is Horace Mann Educators Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Horace Mann Educators's forward rate of return for was 4.40%.

The historical rank and industry rank for Horace Mann Educators's Forward Rate of Return (Yacktman) % or its related term are showing as below:

HMN' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -6.14   Med: 21.64   Max: 37.77
Current: 2.62

During the past 13 years, Horace Mann Educators's highest Forward Rate of Return was 37.77. The lowest was -6.14. And the median was 21.64.

HMN's Forward Rate of Return (Yacktman) % is ranked worse than
76.06% of 259 companies
in the Insurance industry
Industry Median: 15.96 vs HMN: 2.62

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Horace Mann Educators Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Horace Mann Educators's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Horace Mann Educators Forward Rate of Return (Yacktman) % Chart

Horace Mann Educators Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.73 22.40 32.90 27.46 4.40

Horace Mann Educators Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Forward Rate of Return (Yacktman) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.46 21.61 15.95 7.66 4.40

Competitive Comparison of Horace Mann Educators's Forward Rate of Return (Yacktman) %

For the Insurance - Property & Casualty subindustry, Horace Mann Educators's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Horace Mann Educators's Forward Rate of Return (Yacktman) % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Horace Mann Educators's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Horace Mann Educators's Forward Rate of Return (Yacktman) % falls into.



Horace Mann Educators Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Horace Mann Educators's Forward Rate of Return of Dec. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=4.77980952/32.7+-0.1022
=4.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Horace Mann Educators  (NYSE:HMN) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Horace Mann Educators Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Horace Mann Educators's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Horace Mann Educators (Horace Mann Educators) Business Description

Traded in Other Exchanges
N/A
Address
1 Horace Mann Plaza, Springfield, IL, USA, 62715-0001
Horace Mann Educators Corp is a diversified insurance holding company that markets and underwrites personal lines of property and casualty insurance, retirement annuities, and life insurance. The company's property and casualty operations focus on automobile and homeowner insurance, while the retirement annuities are 403(b) tax-qualified products. Horace Mann Educators markets its products to kindergarten through 12th-grade teachers, administrators, and other employees of public schools and their families. The company uses several former teachers in its salesforce. Its segments include Property and Casualty, Supplemental & Group Benefits, Life & Retirement and Corporate and Other.
Executives
Beverley J. Mcclure director C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Victor Fetter director 4828 PARKWAY PLAZA, CHARLOTTE NC 28217
Aaliyah A Samuel director C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Michael Weckenbrock officer: Senior Vice President C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Stephen J Mcanena officer: EVP & Chief Operating Officer C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Matthew P. Sharpe officer: Executive Vice President 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Thomas A Bradley director 199 WATER STREET, 24TH FLOOR, NEW YORK NY 10038
Kimberly A Johnson officer: Vice President & Controller C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Robert Stricker director C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Marita Zuraitis director, officer: President & CEO THE HANOVER INSURANCE GROUP, INC., 440 LINCOLN STREET, WORCESTER MA 01653
Elaine A Sarsynski director 312 FARMINGTON AVE, FARMINGTON CT 06032
Derik Tyson Sanders officer: Vice President C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Stephanie A Fulks officer: Senior Vice President C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Timothy A Darley officer: Senior Vice President C/O HORACE MANN EDUCATORS CORPORATION, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715
Bret A Conklin officer: SVP & Controller C/O HORACE MANN EDUCATORS CORP, 1 HORACE MANN PLAZA, SPRINGFIELD IL 62715