MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
NYSE:MTG - US5528481030 - Common Stock
28.4 USD
-0.04 (-0.14%)
28.4 USD
0 (0%)
Overall MTG gets a fundamental rating of 5 out of 10. We evaluated MTG against 102 industry peers in the Financial Services industry. MTG has only an average score on both its financial health and profitability. MTG is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years MTG has been profitable.
Each year in the past 5 years MTG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.66%, MTG belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
MTG's Return On Equity of 14.79% is fine compared to the rest of the industry. MTG outperforms 73.53% 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
The Profit Margin of MTG (62.58%) is better than 98.04% of its industry peers.
MTG's Profit Margin has improved in the last couple of years.
MTG has a better Operating Margin (82.50%) than 97.06% 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.
Compared to 1 year ago, MTG has less shares outstanding
MTG has less shares outstanding than it did 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 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.84, MTG belongs to the best of the industry, outperforming 85.29% 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.
MTG's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. MTG outperforms 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.33%
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 12.09% over the past year.
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%.
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)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
MTG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.89% yearly.
The Revenue is expected to grow by 2.65% on average over the next years.
EPS Next Y5.05%
EPS Next 2Y3.25%
EPS Next 3Y4.89%
EPS Next 5YN/A
Revenue Next Year1.47%
Revenue Next 2Y2.02%
Revenue Next 3Y2.65%
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
MTG is valuated reasonably with a Price/Earnings ratio of 9.28.
MTG's Price/Earnings ratio is a bit cheaper when compared to the industry. MTG is cheaper than 77.45% of the companies in the same industry.
MTG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
With a Price/Forward Earnings ratio of 9.15, the valuation of MTG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTG indicates a somewhat cheap valuation: MTG is cheaper than 65.69% of the companies listed 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 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
87.25% of the companies in the same industry are more expensive than MTG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MTG is valued a bit cheaper than 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.49 | ||
| EV/EBITDA | 6.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MTG may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)0.98
EPS Next 2Y3.25%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 2.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.24, MTG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MTG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
On average, the dividend of MTG grows each year by 33.24%, which is quite nice.
MTG has paid a dividend for at least 10 years, which is 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 17.21% 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.
DP17.21%
EPS Next 2Y3.25%
EPS Next 3Y4.89%
28.4
-0.04 (-0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.54%
Inst Owner Change0.86%
Ins Owners1.72%
Ins Owner Change-3.89%
Market Cap6.55B
Analysts51.43
Price Target27.88 (-1.83%)
Short Float %2.69%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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)0.61%
PT rev (3m)1.23%
EPS NQ rev (1m)3.11%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 9.15 | ||
| P/S | 5.37 | ||
| P/FCF | 8.49 | ||
| P/OCF | 8.48 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 6.78 |
EPS(TTM)3.06
EY10.77%
EPS(NY)3.1
Fwd EY10.92%
FCF(TTM)3.34
FCFY11.77%
OCF(TTM)3.35
OCFY11.79%
SpS5.29
BVpS22.36
TBVpS22.36
PEG (NY)1.84
PEG (5Y)0.98
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
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-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
WACC8.33%
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 Y5.05%
EPS Next 2Y3.25%
EPS Next 3Y4.89%
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%