MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
NYSE:MTG - New York Stock Exchange, Inc. - US5528481030 - Common Stock - Currency: USD
Taking everything into account, MTG scores 5 out of 10 in our fundamental rating. MTG was compared to 101 industry peers in the Financial Services industry. MTG has an average financial health and profitability rating. MTG has a correct valuation and a medium 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.
MTG had positive earnings in each of the past 5 years.
In the past 5 years MTG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.85%, MTG belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.07%, MTG is in the better half of the industry, outperforming 73.27% of the companies in the same industry.
| 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's Profit Margin of 63.49% is amongst the best of the industry. MTG outperforms 97.03% of its industry peers.
In the last couple of years the Profit Margin of MTG has grown nicely.
The Operating Margin of MTG (83.56%) is better than 99.01% 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.
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 0.85. 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.
With an excellent Debt to FCF ratio value of 0.85, MTG belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that MTG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, MTG is in the better half of the industry, outperforming 76.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC9.49%
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.
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)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%3.78%
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 4.94% 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 Y-2.22%
EPS Next 2Y1.43%
EPS Next 3Y4.94%
EPS Next 5YN/A
Revenue Next Year1.63%
Revenue Next 2Y2.54%
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 8.69.
71.29% 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 (24.21), we can say MTG is valued rather cheaply.
The Price/Forward Earnings ratio is 8.74, 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 60.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, MTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
87.13% of the companies in the same industry are more expensive than MTG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTG indicates a somewhat cheap valuation: MTG is cheaper than 79.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
The decent profitability rating of MTG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y1.43%
EPS Next 3Y4.94%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 1.98%.
MTG's Dividend Yield is a higher than the industry average which is at 5.19.
MTG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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
16.93% 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.
DP16.93%
EPS Next 2Y1.43%
EPS Next 3Y4.94%
26.17
-0.07 (-0.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.42%
Inst Owner Change-4.48%
Ins Owners1.51%
Ins Owner Change10.92%
Market Cap6.35B
Analysts51.43
Price Target27.54 (5.24%)
Short Float %3.66%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)-1.37%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)1
Avg Revenue beat(12)-1.85%
Revenue beat(16)2
Avg Revenue beat(16)-1.5%
PT rev (1m)-0.53%
PT rev (3m)2.72%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)1.65%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 8.74 | ||
| P/S | 5.2 | ||
| P/FCF | 8.39 | ||
| P/OCF | 8.37 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)3.01
EY11.5%
EPS(NY)2.99
Fwd EY11.44%
FCF(TTM)3.12
FCFY11.92%
OCF(TTM)3.13
OCFY11.94%
SpS5.03
BVpS21.19
TBVpS21.19
PEG (NY)N/A
PEG (5Y)0.92
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
WACC9.49%
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 Y-2.22%
EPS Next 2Y1.43%
EPS Next 3Y4.94%
EPS Next 5YN/A
Revenue 1Y (TTM)4.64%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%3.78%
Revenue Next Year1.63%
Revenue Next 2Y2.54%
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%