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 99 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.
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
With an excellent Return On Assets value of 11.85%, MTG belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
MTG has a Return On Equity of 15.07%. This is in the better half of the industry: MTG outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.85% | ||
| ROE | 15.07% | ||
| 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 63.49%, MTG belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
MTG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 83.56%, MTG belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Operating Margin of MTG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 83.56% | ||
| PM (TTM) | 63.49% | ||
| 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.
The number of shares outstanding for MTG has been reduced compared to 1 year ago.
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
The Debt to FCF ratio of MTG is 0.85, which is an excellent value as it means it would take MTG, only 0.85 years of fcf income to pay off all of its debts.
MTG's Debt to FCF ratio of 0.85 is amongst the best of the industry. MTG outperforms 86.87% of its industry peers.
MTG has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MTG (0.13) is better than 73.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.6%
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 14.02% over the past year.
Measured over the past years, MTG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.48% on average per year.
The Revenue has been growing slightly by 4.64% in the past year.
MTG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.10% yearly.
EPS 1Y (TTM)14.02%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%15.38%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%4.03%
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 4.31% on average per year.
Based on estimates for the next years, MTG will show a small growth in Revenue. The Revenue will grow by 2.78% on average per year.
EPS Next Y1.76%
EPS Next 2Y2.41%
EPS Next 3Y4.31%
EPS Next 5YN/A
Revenue Next Year1.55%
Revenue Next 2Y2.34%
Revenue Next 3Y2.78%
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
Based on the Price/Earnings ratio of 8.94, the valuation of MTG can be described as reasonable.
72.73% of the companies in the same industry are more expensive than MTG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MTG to the average of the S&P500 Index (26.60), we can say MTG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.82 indicates a reasonable valuation of MTG.
Based on the Price/Forward Earnings ratio, MTG is valued a bit cheaper than 62.63% of the companies in the same industry.
MTG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTG indicates a rather cheap valuation: MTG is cheaper than 86.87% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MTG is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.45 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTG does not grow enough to justify the current Price/Earnings ratio.
MTG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.07
PEG (5Y)0.94
EPS Next 2Y2.41%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 2.00%.
Compared to an average industry Dividend Yield of 4.93, MTG pays a bit more dividend than its industry peers.
MTG's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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 16.93% 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.
DP16.93%
EPS Next 2Y2.41%
EPS Next 3Y4.31%
NYSE:MTG (6/13/2025, 10:47:09 AM)
26.92
+0.02 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.42%
Inst Owner Change-4.96%
Ins Owners1.51%
Ins Owner Change10.24%
Market Cap6.39B
Analysts51.43
Price Target27.71 (2.93%)
Short Float %3.86%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend0.5
Dividend Growth(5Y)33.24%
DP16.93%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)6.93%
Max EPS beat(2)8.29%
EPS beat(4)4
Avg EPS beat(4)12.49%
Min EPS beat(4)6.93%
Max EPS beat(4)19.95%
EPS beat(8)8
Avg EPS beat(8)14.07%
EPS beat(12)12
Avg EPS beat(12)22.19%
EPS beat(16)16
Avg EPS beat(16)20.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-0.82%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.55%
Revenue beat(12)1
Avg Revenue beat(12)-1.83%
Revenue beat(16)2
Avg Revenue beat(16)-1.49%
PT rev (1m)0.62%
PT rev (3m)0.09%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)4.08%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.82 | ||
| P/S | 5.24 | ||
| P/FCF | 8.45 | ||
| P/OCF | 8.43 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)3.01
EY11.18%
EPS(NY)3.05
Fwd EY11.34%
FCF(TTM)3.19
FCFY11.84%
OCF(TTM)3.19
OCFY11.86%
SpS5.14
BVpS21.65
TBVpS21.65
PEG (NY)5.07
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.85% | ||
| ROE | 15.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 83.56% | ||
| PM (TTM) | 63.49% | ||
| GM | N/A | ||
| FCFM | 62.06% |
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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 8.87% | ||
| Cap/Sales | 0.11% | ||
| Interest Coverage | 29.89 | ||
| Cash Conversion | 73.34% | ||
| Profit Quality | 97.74% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.6%
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)14.02%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%15.38%
EPS Next Y1.76%
EPS Next 2Y2.41%
EPS Next 3Y4.31%
EPS Next 5YN/A
Revenue 1Y (TTM)4.64%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%4.03%
Revenue Next Year1.55%
Revenue Next 2Y2.34%
Revenue Next 3Y2.78%
Revenue Next 5YN/A
EBIT growth 1Y5.82%
EBIT growth 3Y3.34%
EBIT growth 5Y2.2%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y19.85%
FCF growth 3Y1.5%
FCF growth 5Y3.69%
OCF growth 1Y19.53%
OCF growth 3Y1.36%
OCF growth 5Y3.53%