MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MTG - US5528481030 - Common Stock
28.28 USD
-0.09 (-0.32%)
28.28 USD
0 (0%)
Taking everything into account, MTG scores 6 out of 10 in our fundamental rating. MTG was compared to 98 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years MTG had a positive operating cash flow.
1.2 Ratios
MTG has a better Return On Assets (11.38%) than 93.88% of its industry peers.
Looking at the Return On Equity, with a value of 14.57%, MTG is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
The Return On Invested Capital of MTG (11.99%) is better than 88.78% 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
MTG has a better Profit Margin (61.96%) than 96.94% of its industry peers.
In the last couple of years the Profit Margin of MTG has grown nicely.
With an excellent Operating Margin value of 81.07%, MTG belongs to the best of the industry, outperforming 96.94% 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 | 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
MTG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
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.
Compared to 1 year ago, MTG has about the same debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of MTG is 0.80, which is an excellent value as it means it would take MTG, only 0.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.80, MTG belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
MTG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MTG (0.12) is better than 74.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC8.31%
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.
Looking at the last year, MTG shows a small growth in Revenue. The Revenue has grown by 2.20% in the last year.
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)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
Based on estimates for the next years, MTG will show a small growth in Earnings Per Share. The EPS will grow by 6.01% on average per year.
MTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.
EPS Next Y9.36%
EPS Next 2Y4.86%
EPS Next 3Y6.01%
EPS Next 5YN/A
Revenue Next Year0.98%
Revenue Next 2Y2.22%
Revenue Next 3Y2.63%
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 9.06, 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 67.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. MTG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.84, which indicates a very decent valuation of MTG.
Based on the Price/Forward Earnings ratio, MTG is valued a bit cheaper than the industry average as 60.20% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MTG to the average of the S&P500 Index (36.20), we can say MTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
MTG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MTG is cheaper than 83.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTG is valued cheaply inside the industry as 80.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MTG may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)0.96
EPS Next 2Y4.86%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 2.11%.
Compared to an average industry Dividend Yield of 4.97, 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
The dividend of MTG is nicely growing with an annual growth rate of 33.24%!
MTG has been paying a dividend for at least 10 years, so it has 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
17.51% 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.
DP17.51%
EPS Next 2Y4.86%
EPS Next 3Y6.01%
28.28
-0.09 (-0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.54%
Inst Owner Change-3.96%
Ins Owners1.68%
Ins Owner Change-7.48%
Market Cap6.33B
Revenue(TTM)1.22B
Net Income(TTM)753.74M
Analysts50.77
Price Target28.22 (-0.21%)
Short Float %2.52%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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)2.7%
EPS NQ rev (3m)5.1%
EPS NY rev (1m)3.24%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.84 | ||
| P/S | 5.2 | ||
| P/FCF | 7.87 | ||
| P/OCF | 7.87 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)3.12
EY11.03%
EPS(NY)3.2
Fwd EY11.31%
FCF(TTM)3.59
FCFY12.7%
OCF(TTM)3.6
OCFY12.71%
SpS5.44
BVpS23.12
TBVpS23.12
PEG (NY)0.97
PEG (5Y)0.96
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
WACC8.31%
ROIC/WACC1.44
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 2Y4.86%
EPS Next 3Y6.01%
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 2Y2.22%
Revenue Next 3Y2.63%
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 6 / 10 to MTG.
What is the valuation status for MTG stock?
ChartMill assigns a valuation rating of 8 / 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%.