MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
USA - NYSE:MTG - US5528481030 - Common Stock
27.38 USD
-0.05 (-0.18%)
27.38 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MTG. MTG was compared to 99 industry peers in the Financial Services industry. MTG has an average financial health and profitability rating. MTG has a correct valuation and a medium growth rate.
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 (11.66%) than 93.94% of its industry peers.
MTG's Return On Equity of 14.79% is fine compared to the rest of the industry. MTG outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.66% | ||
| ROE | 14.79% | ||
| 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
MTG has a Profit Margin of 62.58%. This is amongst the best in the industry. MTG outperforms 97.98% of its industry peers.
MTG's Profit Margin has improved in the last couple of years.
MTG has a Operating Margin of 82.50%. This is amongst the best in the industry. MTG outperforms 97.98% of its industry peers.
MTG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 82.5% | ||
| PM (TTM) | 62.58% | ||
| 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.
MTG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTG has less shares outstanding
The debt/assets ratio for MTG has remained at the same level compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MTG is 0.84, which is an excellent value as it means it would take MTG, only 0.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.84, MTG belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
MTG has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.13, MTG is in the better half of the industry, outperforming 79.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.25%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.09%, which is quite good.
The Earnings Per Share has been growing by 9.48% on average over the past years. This is quite good.
MTG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.26%.
MTG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.10% yearly.
EPS 1Y (TTM)12.09%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%6.49%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%-0.34%
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 5.67% on average per year.
Based on estimates for the next years, MTG will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y5.86%
EPS Next 2Y4%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue Next Year1.47%
Revenue Next 2Y2.02%
Revenue Next 3Y2.65%
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.
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
Based on the Price/Earnings ratio of 8.95, the valuation of MTG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MTG indicates a somewhat cheap valuation: MTG is cheaper than 74.75% of the companies listed in the same industry.
MTG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
MTG is valuated reasonably with a Price/Forward Earnings ratio of 8.70.
Based on the Price/Forward Earnings ratio, MTG is valued a bit cheaper than the industry average as 62.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, MTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
MTG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MTG is cheaper than 86.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTG is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.19 | ||
| EV/EBITDA | 6.56 |
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)1.53
PEG (5Y)0.94
EPS Next 2Y4%
EPS Next 3Y5.67%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.15, MTG pays a bit more dividend than its industry peers.
MTG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of MTG is nicely growing with an annual growth rate of 33.24%!
MTG has paid a dividend for at least 10 years, which is a reliable track record.
MTG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)33.24%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
17.21% 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.
DP17.21%
EPS Next 2Y4%
EPS Next 3Y5.67%
27.38
-0.05 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.54%
Inst Owner Change-0.06%
Ins Owners1.68%
Ins Owner Change-7.02%
Market Cap6.31B
Revenue(TTM)1.22B
Net Income(TTM)762.61M
Analysts50.77
Price Target27.88 (1.83%)
Short Float %2.58%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend0.5
Dividend Growth(5Y)33.24%
DP17.21%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.42%
Min EPS beat(2)8.29%
Max EPS beat(2)12.54%
EPS beat(4)4
Avg EPS beat(4)10.63%
Min EPS beat(4)6.93%
Max EPS beat(4)14.77%
EPS beat(8)8
Avg EPS beat(8)12.35%
EPS beat(12)12
Avg EPS beat(12)17.99%
EPS beat(16)16
Avg EPS beat(16)21.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)-0.79%
Revenue beat(8)1
Avg Revenue beat(8)-1.54%
Revenue beat(12)1
Avg Revenue beat(12)-1.88%
Revenue beat(16)1
Avg Revenue beat(16)-1.61%
PT rev (1m)0%
PT rev (3m)0.61%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)4.02%
EPS NY rev (1m)0.77%
EPS NY rev (3m)4.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 8.7 | ||
| P/S | 5.18 | ||
| P/FCF | 8.19 | ||
| P/OCF | 8.18 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)3.06
EY11.18%
EPS(NY)3.15
Fwd EY11.49%
FCF(TTM)3.34
FCFY12.21%
OCF(TTM)3.35
OCFY12.23%
SpS5.29
BVpS22.36
TBVpS22.36
PEG (NY)1.53
PEG (5Y)0.94
Graham Number39.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.66% | ||
| ROE | 14.79% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 82.5% | ||
| PM (TTM) | 62.58% | ||
| GM | N/A | ||
| FCFM | 63.26% |
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-Score8
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 8.19% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 29.48 | ||
| Cash Conversion | 75.82% | ||
| Profit Quality | 101.08% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.25%
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)12.09%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%6.49%
EPS Next Y5.86%
EPS Next 2Y4%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue 1Y (TTM)3.26%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%-0.34%
Revenue Next Year1.47%
Revenue Next 2Y2.02%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y2.59%
EBIT growth 3Y3.34%
EBIT growth 5Y2.2%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y19.83%
FCF growth 3Y1.5%
FCF growth 5Y3.69%
OCF growth 1Y19.64%
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 6 / 10 to MGIC INVESTMENT CORP (MTG). This can be considered as Fairly Valued.
Can you provide the profitability details for MGIC INVESTMENT CORP?
MGIC INVESTMENT CORP (MTG) has a profitability rating of 6 / 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 17.21%.