MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MTG - US5528481030 - Common Stock
29.72 USD
+0.04 (+0.13%)
29.72 USD
0 (0%)
Overall MTG gets a fundamental rating of 5 out of 10. We evaluated MTG against 99 industry peers in the Financial Services industry. While MTG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MTG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MTG was profitable.
In the past year MTG had a positive cash flow from operations.
MTG had positive earnings in each of the past 5 years.
Each year in the past 5 years MTG had a positive operating cash flow.
1.2 Ratios
MTG has a Return On Assets of 11.38%. This is amongst the best in the industry. MTG outperforms 92.93% of its industry peers.
With a decent Return On Equity value of 14.57%, MTG is doing good in the industry, outperforming 75.76% of the companies in the same industry.
MTG has a Return On Invested Capital of 11.99%. This is amongst the best in the industry. MTG outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 14.57% | ||
| ROIC | 11.99% |
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
Looking at the Profit Margin, with a value of 61.96%, MTG belongs to the top of the industry, outperforming 95.96% of the companies in the same industry.
MTG's Profit Margin has improved in the last couple of years.
MTG's Operating Margin of 81.07% is amongst the best of the industry. MTG outperforms 96.97% of its industry peers.
In the last couple of years the Operating Margin of MTG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 81.07% | ||
| PM (TTM) | 61.96% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MTG is still creating some value.
MTG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTG has less shares outstanding
Compared to 1 year ago, MTG has about the same debt to assets ratio.
2.2 Solvency
MTG has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
MTG has a Debt to FCF ratio of 0.80. This is amongst the best in the industry. MTG outperforms 82.83% of its industry peers.
MTG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
MTG has a Debt to Equity ratio of 0.12. This is in the better half of the industry: MTG outperforms 74.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC8.4%
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 9.09% 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 2.20%.
MTG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.10% yearly.
EPS 1Y (TTM)9.09%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%7.79%
Revenue 1Y (TTM)2.2%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%-0.7%
3.2 Future
The Earnings Per Share is expected to grow by 6.34% on average over the next years.
The Revenue is expected to grow by 2.37% on average over the next years.
EPS Next Y9.36%
EPS Next 2Y4.96%
EPS Next 3Y6.34%
EPS Next 5YN/A
Revenue Next Year0.98%
Revenue Next 2Y2.02%
Revenue Next 3Y2.37%
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.
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
Based on the Price/Earnings ratio of 9.53, the valuation of MTG can be described as reasonable.
66.67% 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 26.50, MTG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.27, the valuation of MTG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTG is on the same level as its industry peers.
MTG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTG is valued cheaper than 83.84% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTG indicates a rather cheap valuation: MTG is cheaper than 82.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
MTG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.02
PEG (5Y)1
EPS Next 2Y4.96%
EPS Next 3Y6.34%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 2.43, MTG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, MTG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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
MTG pays out 17.51% of its income as dividend. This is a sustainable payout ratio.
MTG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.51%
EPS Next 2Y4.96%
EPS Next 3Y6.34%
29.72
+0.04 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.43%
Inst Owner Change-3.95%
Ins Owners1.63%
Ins Owner Change-7.61%
Market Cap6.65B
Revenue(TTM)1.22B
Net Income(TTM)753.74M
Analysts50.77
Price TargetN/A
Short Float %2.71%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.5
Dividend Growth(5Y)33.24%
DP17.51%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.35%
Min EPS beat(2)10.16%
Max EPS beat(2)12.54%
EPS beat(4)4
Avg EPS beat(4)9.48%
Min EPS beat(4)6.93%
Max EPS beat(4)12.54%
EPS beat(8)8
Avg EPS beat(8)12.05%
EPS beat(12)12
Avg EPS beat(12)13.66%
EPS beat(16)16
Avg EPS beat(16)21.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.18%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)-0.82%
Revenue beat(8)1
Avg Revenue beat(8)-1.7%
Revenue beat(12)1
Avg Revenue beat(12)-1.81%
Revenue beat(16)1
Avg Revenue beat(16)-1.63%
PT rev (1m)0.61%
PT rev (3m)1.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.1%
EPS NY rev (1m)0%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 9.27 | ||
| P/S | 5.47 | ||
| P/FCF | 8.28 | ||
| P/OCF | 8.27 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 7.05 |
EPS(TTM)3.12
EY10.5%
EPS(NY)3.21
Fwd EY10.79%
FCF(TTM)3.59
FCFY12.08%
OCF(TTM)3.6
OCFY12.1%
SpS5.44
BVpS23.12
TBVpS23.12
PEG (NY)1.02
PEG (5Y)1
Graham Number40.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 14.57% | ||
| ROCE | 15.2% | ||
| ROIC | 11.99% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 13.17% | ||
| OM | 81.07% | ||
| PM (TTM) | 61.96% | ||
| GM | N/A | ||
| FCFM | 66.05% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 9.23% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 28.92 | ||
| Cash Conversion | 80.74% | ||
| Profit Quality | 106.6% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.4%
ROIC/WACC1.43
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)9.09%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%7.79%
EPS Next Y9.36%
EPS Next 2Y4.96%
EPS Next 3Y6.34%
EPS Next 5YN/A
Revenue 1Y (TTM)2.2%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%-0.7%
Revenue Next Year0.98%
Revenue Next 2Y2.02%
Revenue Next 3Y2.37%
Revenue Next 5YN/A
EBIT growth 1Y-1.33%
EBIT growth 3Y3.34%
EBIT growth 5Y2.2%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.36%
FCF growth 3Y1.5%
FCF growth 5Y3.69%
OCF growth 1Y16.1%
OCF growth 3Y1.36%
OCF growth 5Y3.53%
MGIC INVESTMENT CORP / MTG FAQ
What is the fundamental rating for MTG stock?
ChartMill assigns a fundamental rating of 5 / 10 to MTG.
What is the valuation status for MTG stock?
ChartMill assigns a valuation rating of 7 / 10 to MGIC INVESTMENT CORP (MTG). This can be considered as Undervalued.
Can you provide the profitability details for MGIC INVESTMENT CORP?
MGIC INVESTMENT CORP (MTG) has a profitability rating of 7 / 10.
What is the financial health of MGIC INVESTMENT CORP (MTG) stock?
The financial health rating of MGIC INVESTMENT CORP (MTG) is 4 / 10.
How sustainable is the dividend of MGIC INVESTMENT CORP (MTG) stock?
The dividend rating of MGIC INVESTMENT CORP (MTG) is 6 / 10 and the dividend payout ratio is 17.51%.