MGIC INVESTMENT CORP (MTG)
US5528481030 - Common Stock
Overall MTG gets a fundamental rating of 5 out of 10. We evaluated MTG against 102 industry peers in the Financial Services industry. Both the profitability and the financial health of MTG get a neutral evaluation. Nothing too spectacular is happening here. MTG is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MTG had positive earnings in the past year.
MTG had a positive operating cash flow in the past year.
In the past 5 years MTG has always been profitable.
MTG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTG has a Return On Assets of 10.90%. This is amongst the best in the industry. MTG outperforms 94.12% of its industry peers.
MTG's Return On Equity of 14.06% is fine compared to the rest of the industry. MTG outperforms 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 14.06% | ||
| ROIC | N/A |
ROA(3y)11.17%
ROA(5y)10.08%
ROE(3y)15.25%
ROE(5y)14.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MTG's Profit Margin of 61.71% is amongst the best of the industry. MTG outperforms 97.06% of its industry peers.
In the last couple of years the Profit Margin of MTG has remained more or less at the same level.
MTG has a better Operating Margin (81.31%) than 98.04% of its industry peers.
MTG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 81.31% | ||
| PM (TTM) | 61.71% | ||
| GM | N/A |
OM growth 3Y14.73%
OM growth 5Y0.37%
PM growth 3Y18.38%
PM growth 5Y0.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MTG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for MTG has been reduced compared to 1 year ago.
MTG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MTG has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of MTG is 0.90, which is an excellent value as it means it would take MTG, only 0.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.90, MTG belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that MTG is not too dependend on debt financing.
MTG's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. MTG outperforms 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.72%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MTG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.65%.
Measured over the past 5 years, MTG shows a small growth in Earnings Per Share. The EPS has been growing by 7.29% on average per year.
MTG shows a decrease in Revenue. In the last year, the revenue decreased by -1.50%.
MTG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.55% yearly.
EPS 1Y (TTM)-13.65%
EPS 3Y23.91%
EPS 5Y7.29%
EPS growth Q2Q3.08%
Revenue 1Y (TTM)-1.5%
Revenue growth 3Y-1.24%
Revenue growth 5Y0.55%
Revenue growth Q2Q-2.85%
3.2 Future
Based on estimates for the next years, MTG will show a small growth in Earnings Per Share. The EPS will grow by 4.03% on average per year.
MTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y-1.71%
EPS Next 2Y1.19%
EPS Next 3Y4.03%
EPS Next 5YN/A
Revenue Next Year4.59%
Revenue Next 2Y4.24%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MTG is valuated reasonably with a Price/Earnings ratio of 8.04.
Based on the Price/Earnings ratio, MTG is valued cheaper than 83.33% of the companies in the same industry.
MTG is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
MTG is valuated reasonably with a Price/Forward Earnings ratio of 8.18.
81.37% of the companies in the same industry are more expensive than MTG, based on the Price/Forward Earnings ratio.
MTG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTG is valued cheaply inside the industry as 89.22% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTG indicates a rather cheap valuation: MTG is cheaper than 81.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 5.92 |
4.3 Compensation for Growth
The decent profitability rating of MTG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y1.19%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, MTG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.64, MTG pays a bit more dividend than its industry peers.
MTG's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
MTG has paid a dividend for at least 10 years, which is a reliable track record.
MTG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
17.25% of the earnings are spent on dividend by MTG. This is a low number and sustainable payout ratio.
DP17.25%
EPS Next 2Y1.19%
EPS Next 3Y4.03%
MGIC INVESTMENT CORP
NYSE:MTG (4/24/2024, 7:18:09 PM)
After market: 20.35 0 (0%)20.35
+0.05 (+0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 8.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 14.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 81.31% | ||
| PM (TTM) | 61.71% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.65%
EPS 3Y23.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.5%
Revenue growth 3Y-1.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y