MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
NYSE:MTG - New York Stock Exchange, Inc. - US5528481030 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MTG. MTG was compared to 100 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
In the past year MTG was profitable.
MTG had a positive operating cash flow in the past year.
Each year in the past 5 years MTG has been profitable.
MTG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.85%, MTG belongs to the top of the industry, outperforming 94.00% 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 73.00% 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
MTG has a better Profit Margin (63.49%) than 98.00% of its industry peers.
MTG's Profit Margin has improved in the last couple of years.
MTG has a better Operating Margin (83.56%) than 97.00% of its industry peers.
MTG's Operating Margin has improved in the last couple of years.
| 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.
MTG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MTG has been reduced compared to 5 years ago.
The debt/assets ratio for MTG has remained at the same level compared to a year ago.
2.2 Solvency
MTG has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
The Debt to FCF ratio of MTG (0.85) is better than 87.00% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that MTG is not too dependend on debt financing.
The Debt to Equity ratio of MTG (0.13) is better than 73.00% 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.
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 4.64%.
The Revenue has been decreasing by -0.10% on average over the past years.
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
MTG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.31% yearly.
MTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.78% yearly.
EPS Next Y1.5%
EPS Next 2Y2.65%
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
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 8.39.
Based on the Price/Earnings ratio, MTG is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
MTG is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
MTG is valuated reasonably with a Price/Forward Earnings ratio of 8.24.
Based on the Price/Forward Earnings ratio, MTG is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MTG to the average of the S&P500 Index (21.76), we can say MTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTG is valued cheaper than 86.00% of the companies in the same industry.
79.00% of the companies in the same industry are more expensive than MTG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.92 | ||
| EV/EBITDA | 6.37 |
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.
The decent profitability rating of MTG may justify a higher PE ratio.
PEG (NY)5.61
PEG (5Y)0.89
EPS Next 2Y2.65%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, MTG has a reasonable but not impressive dividend return.
MTG's Dividend Yield is a higher than the industry average which is at 5.00.
MTG's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| 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 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
MTG pays out 16.93% of its income as dividend. This is a sustainable payout ratio.
The dividend of MTG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.93%
EPS Next 2Y2.65%
EPS Next 3Y4.31%
25.26
-0.61 (-2.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.59%
Inst Owner Change0.01%
Ins Owners1.79%
Ins Owner Change9.96%
Market Cap6.00B
Analysts51.43
Price Target27.71 (9.7%)
Short Float %2.65%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)3.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 8.24 | ||
| P/S | 4.92 | ||
| P/FCF | 7.92 | ||
| P/OCF | 7.91 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)3.01
EY11.92%
EPS(NY)3.07
Fwd EY12.14%
FCF(TTM)3.19
FCFY12.62%
OCF(TTM)3.19
OCFY12.64%
SpS5.14
BVpS21.65
TBVpS21.65
PEG (NY)5.61
PEG (5Y)0.89
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 Y1.5%
EPS Next 2Y2.65%
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%