MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
USA - NYSE:MTG - US5528481030 - Common Stock
28.48 USD
+0.19 (+0.67%)
28.48 USD
0 (0%)
Overall MTG gets a fundamental rating of 6 out of 10. We evaluated MTG against 97 industry peers in the Financial Services industry. MTG has an excellent profitability rating, but 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. These ratings could make MTG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year MTG was profitable.
MTG had a positive operating cash flow in the past year.
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
The Return On Assets of MTG (11.38%) is better than 93.81% of its industry peers.
MTG has a Return On Equity of 14.57%. This is in the better half of the industry: MTG outperforms 72.16% of its industry peers.
MTG's Return On Invested Capital of 11.99% is amongst the best of the industry. MTG outperforms 88.66% 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
With an excellent Profit Margin value of 61.96%, MTG belongs to the best of the industry, outperforming 97.94% of the companies in the same industry.
MTG's Profit Margin has improved in the last couple of years.
The Operating Margin of MTG (81.07%) is better than 96.91% of its industry peers.
MTG's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MTG 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
MTG has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of 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 84.54% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that MTG is not too dependend on debt financing.
MTG has a better Debt to Equity ratio (0.12) than 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC8.36%
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.
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.
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
MTG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.01% yearly.
Based on estimates for the next years, MTG will show a small growth in Revenue. The Revenue will grow by 2.63% on average per year.
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
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
The Price/Earnings ratio is 9.13, which indicates a very decent valuation of MTG.
Based on the Price/Earnings ratio, MTG is valued a bit cheaper than the industry average as 67.01% of the companies are valued more expensively.
MTG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 8.90 indicates a reasonable valuation of MTG.
MTG's Price/Forward Earnings ratio is in line with the industry average.
MTG is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTG is valued cheaply inside the industry as 84.54% of the companies are valued more expensively.
78.35% 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 | 8.17 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
MTG's 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 2.17%. Purely for dividend investing, there may be better candidates out there.
MTG's Dividend Yield is a higher than the industry average which is at 4.49.
MTG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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 17.51% 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.
DP17.51%
EPS Next 2Y4.86%
EPS Next 3Y6.01%
28.48
+0.19 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.54%
Inst Owner Change-1.03%
Ins Owners1.68%
Ins Owner Change-7.79%
Market Cap6.57B
Revenue(TTM)1.22B
Net Income(TTM)753.74M
Analysts50.77
Price Target28.05 (-1.51%)
Short Float %2.49%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)0.61%
EPS NQ rev (1m)2.97%
EPS NQ rev (3m)4.79%
EPS NY rev (1m)3.31%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 8.9 | ||
| P/S | 5.4 | ||
| P/FCF | 8.17 | ||
| P/OCF | 8.16 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)3.12
EY10.96%
EPS(NY)3.2
Fwd EY11.23%
FCF(TTM)3.49
FCFY12.24%
OCF(TTM)3.49
OCFY12.25%
SpS5.28
BVpS22.44
TBVpS22.44
PEG (NY)0.97
PEG (5Y)0.96
Graham Number39.69
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
WACC8.36%
ROIC/WACC1.43
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 7 / 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 5 / 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%.