MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
NYSE:MTG - New York Stock Exchange, Inc. - US5528481030 - Common Stock - Currency: USD
MTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MTG had positive earnings in the past year.
In the past year MTG had a positive cash flow from operations.
MTG had positive earnings in each of the past 5 years.
In the past 5 years MTG always reported a positive cash flow from operatings.
1.2 Ratios
MTG has a better Return On Assets (11.65%) than 94.06% of its industry peers.
MTG's Return On Equity of 14.75% is fine compared to the rest of the industry. MTG outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 14.75% | ||
| ROIC | N/A |
ROA(3y)12.16%
ROA(5y)10.24%
ROE(3y)15.82%
ROE(5y)14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 63.18%, MTG belongs to the best of the industry, outperforming 97.03% of the companies in the same industry.
In the last couple of years the Profit Margin of MTG has grown nicely.
With an excellent Operating Margin value of 83.16%, MTG belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
MTG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 83.16% | ||
| PM (TTM) | 63.18% | ||
| GM | N/A |
OM growth 3Y2.71%
OM growth 5Y2.31%
PM growth 3Y5.66%
PM growth 5Y2.62%
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.
Compared to 1 year ago, MTG has less shares outstanding
The number of shares outstanding for MTG has been reduced compared to 5 years ago.
MTG has about the same debt/assets ratio as last year.
2.2 Solvency
MTG has a debt to FCF ratio of 0.89. This is a very positive value and a sign of high solvency as it would only need 0.89 years to pay back of all of its debts.
MTG's Debt to FCF ratio of 0.89 is amongst the best of the industry. MTG outperforms 85.15% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that MTG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, MTG is doing good in the industry, outperforming 76.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.73%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.02% over the past year.
MTG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.48% yearly.
MTG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.55%.
Measured over the past years, MTG shows a decrease in Revenue. The Revenue has been decreasing by -0.10% on average per year.
EPS 1Y (TTM)15.02%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%7.46%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%6.16%
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 4.94% on average per year.
Based on estimates for the next years, MTG will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y-2.22%
EPS Next 2Y1.43%
EPS Next 3Y4.94%
EPS Next 5YN/A
Revenue Next Year1.72%
Revenue Next 2Y2.3%
Revenue Next 3Y2.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MTG is valuated reasonably with a Price/Earnings ratio of 8.32.
74.26% of the companies in the same industry are more expensive than MTG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.78, MTG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.51 indicates a reasonable valuation of MTG.
Based on the Price/Forward Earnings ratio, MTG is valued a bit cheaper than the industry average as 64.36% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.32. MTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTG is valued cheaply inside the industry as 88.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MTG is valued a bit cheaper than 79.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The decent profitability rating of MTG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y1.43%
EPS Next 3Y4.94%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.92, MTG pays a bit more dividend than its industry peers.
MTG's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of MTG grows each year by 33.24%, which is quite nice.
MTG has been paying a dividend for at least 10 years, so it has a reliable track record.
As MTG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)33.24%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
17.10% of the earnings are spent on dividend by MTG. This is a low number and sustainable payout ratio.
MTG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.1%
EPS Next 2Y1.43%
EPS Next 3Y4.94%
24.22
-0.49 (-1.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.42%
Inst Owner Change-41.78%
Ins Owners1.51%
Ins Owner Change10.92%
Market Cap5.87B
Analysts52
Price Target27.2 (12.3%)
Short Float %3.37%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend0.5
Dividend Growth(5Y)33.24%
DP17.1%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.85%
Min EPS beat(2)6.93%
Max EPS beat(2)14.77%
EPS beat(4)4
Avg EPS beat(4)12.03%
Min EPS beat(4)6.47%
Max EPS beat(4)19.95%
EPS beat(8)8
Avg EPS beat(8)13.81%
EPS beat(12)12
Avg EPS beat(12)23.32%
EPS beat(16)16
Avg EPS beat(16)20.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-0.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.89%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)2
Avg Revenue beat(16)-1.6%
PT rev (1m)-1.75%
PT rev (3m)2.28%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)2.65%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 8.51 | ||
| P/S | 4.86 | ||
| P/FCF | 8.11 | ||
| P/OCF | 8.1 | ||
| P/B | 1.14 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)2.91
EY12.01%
EPS(NY)2.85
Fwd EY11.75%
FCF(TTM)2.98
FCFY12.32%
OCF(TTM)2.99
OCFY12.34%
SpS4.98
BVpS21.33
TBVpS21.33
PEG (NY)N/A
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 14.75% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 83.16% | ||
| PM (TTM) | 63.18% | ||
| GM | N/A | ||
| FCFM | 59.94% |
ROA(3y)12.16%
ROA(5y)10.24%
ROE(3y)15.82%
ROE(5y)14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.71%
OM growth 5Y2.31%
PM growth 3Y5.66%
PM growth 5Y2.62%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 6.37% | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 29.45 | ||
| Cash Conversion | 70.89% | ||
| Profit Quality | 94.87% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC14.73%
ROIC/WACCN/A
Cap/Depr(3y)6.04%
Cap/Depr(5y)6.01%
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.23%
Profit Quality(3y)89.78%
Profit Quality(5y)108.35%
High Growth Momentum
Growth
EPS 1Y (TTM)15.02%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%7.46%
EPS Next Y-2.22%
EPS Next 2Y1.43%
EPS Next 3Y4.94%
EPS Next 5YN/A
Revenue 1Y (TTM)4.55%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%6.16%
Revenue Next Year1.72%
Revenue Next 2Y2.3%
Revenue Next 3Y2.76%
Revenue Next 5YN/A
EBIT growth 1Y6.93%
EBIT growth 3Y3.34%
EBIT growth 5Y2.2%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.81%
FCF growth 3Y1.5%
FCF growth 5Y3.69%
OCF growth 1Y1.69%
OCF growth 3Y1.36%
OCF growth 5Y3.53%