NMI HOLDINGS INC (NMIH) Stock Fundamental Analysis
NASDAQ:NMIH - Nasdaq - US6292093050 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NMIH. NMIH was compared to 99 industry peers in the Financial Services industry. NMIH has an excellent profitability rating, but there are some minor concerns on its financial health. NMIH may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year NMIH was profitable.
NMIH had a positive operating cash flow in the past year.
Each year in the past 5 years NMIH has been profitable.
In the past 5 years NMIH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.81%, NMIH belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
NMIH's Return On Equity of 16.09% is fine compared to the rest of the industry. NMIH outperforms 74.75% of its industry peers.
The Return On Invested Capital of NMIH (11.90%) is better than 86.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NMIH is in line with the industry average of 11.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.81% | ||
| ROE | 16.09% | ||
| ROIC | 11.9% |
ROA(3y)11.12%
ROA(5y)10.14%
ROE(3y)17.04%
ROE(5y)15.68%
ROIC(3y)12.44%
ROIC(5y)11.39%
1.3 Margins
NMIH has a Profit Margin of 55.93%. This is amongst the best in the industry. NMIH outperforms 94.95% of its industry peers.
NMIH's Profit Margin has improved in the last couple of years.
The Operating Margin of NMIH (77.28%) is better than 94.95% of its industry peers.
NMIH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.28% | ||
| PM (TTM) | 55.93% | ||
| GM | N/A |
OM growth 3Y4.36%
OM growth 5Y4.16%
PM growth 3Y5.11%
PM growth 5Y4.03%
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), NMIH is creating some value.
NMIH has less shares outstanding than it did 1 year ago.
NMIH has more shares outstanding than it did 5 years ago.
NMIH has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of NMIH is 1.10, which is an excellent value as it means it would take NMIH, only 1.10 years of fcf income to pay off all of its debts.
NMIH's Debt to FCF ratio of 1.10 is amongst the best of the industry. NMIH outperforms 82.83% of its industry peers.
NMIH has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
NMIH's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. NMIH outperforms 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.1 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC8.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
NMIH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.34%, which is quite good.
NMIH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.51% yearly.
The Revenue has grown by 11.60% in the past year. This is quite good.
The Revenue has been growing by 11.44% on average over the past years. This is quite good.
EPS 1Y (TTM)16.34%
EPS 3Y18.13%
EPS 5Y11.51%
EPS Q2Q%18.52%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%9.3%
3.2 Future
NMIH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.85% yearly.
NMIH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y10.71%
EPS Next 2Y7.03%
EPS Next 3Y6.85%
EPS Next 5YN/A
Revenue Next Year1.99%
Revenue Next 2Y2.7%
Revenue Next 3Y4.12%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NMIH is valuated reasonably with a Price/Earnings ratio of 8.36.
Based on the Price/Earnings ratio, NMIH is valued a bit cheaper than the industry average as 73.74% of the companies are valued more expensively.
NMIH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.29.
Based on the Price/Forward Earnings ratio of 7.62, the valuation of NMIH can be described as very cheap.
NMIH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NMIH is cheaper than 68.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.17. NMIH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
84.85% of the companies in the same industry are more expensive than NMIH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NMIH is valued a bit cheaper than 79.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.14 | ||
| EV/EBITDA | 6.51 |
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 NMIH may justify a higher PE ratio.
PEG (NY)0.78
PEG (5Y)0.73
EPS Next 2Y7.03%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
NMIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NMIH (6/3/2025, 10:42:45 AM)
39.28
-0.33 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.77%
Inst Owner Change1.72%
Ins Owners1.38%
Ins Owner Change2.65%
Market Cap3.07B
Analysts81.54
Price Target42.67 (8.63%)
Short Float %2.66%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.66%
Min EPS beat(2)-6.75%
Max EPS beat(2)14.08%
EPS beat(4)2
Avg EPS beat(4)4.72%
Min EPS beat(4)-6.75%
Max EPS beat(4)14.08%
EPS beat(8)6
Avg EPS beat(8)5.55%
EPS beat(12)10
Avg EPS beat(12)5.81%
EPS beat(16)13
Avg EPS beat(16)4.64%
Revenue beat(2)0
Avg Revenue beat(2)-4.9%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-3.42%
Revenue beat(4)0
Avg Revenue beat(4)-4.1%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-2.45%
Revenue beat(8)0
Avg Revenue beat(8)-3.33%
Revenue beat(12)3
Avg Revenue beat(12)-1.36%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)-0.4%
PT rev (3m)-2.06%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)2.79%
EPS NY rev (1m)5.62%
EPS NY rev (3m)5.29%
Revenue NQ rev (1m)-3%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)-2.57%
Revenue NY rev (3m)-2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 7.62 | ||
| P/S | 4.59 | ||
| P/FCF | 8.14 | ||
| P/OCF | 8.01 | ||
| P/B | 1.32 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 6.51 |
EPS(TTM)4.7
EY11.97%
EPS(NY)5.16
Fwd EY13.12%
FCF(TTM)4.82
FCFY12.28%
OCF(TTM)4.91
OCFY12.49%
SpS8.55
BVpS29.72
TBVpS29.67
PEG (NY)0.78
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.81% | ||
| ROE | 16.09% | ||
| ROCE | 15.28% | ||
| ROIC | 11.9% | ||
| ROICexc | 12.17% | ||
| ROICexgc | 13.84% | ||
| OM | 77.28% | ||
| PM (TTM) | 55.93% | ||
| GM | N/A | ||
| FCFM | 56.4% |
ROA(3y)11.12%
ROA(5y)10.14%
ROE(3y)17.04%
ROE(5y)15.68%
ROIC(3y)12.44%
ROIC(5y)11.39%
ROICexc(3y)12.73%
ROICexc(5y)11.75%
ROICexgc(3y)14.21%
ROICexgc(5y)12.86%
ROCE(3y)15.97%
ROCE(5y)14.63%
ROICexcg growth 3Y5.83%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y3.34%
ROICexc growth 5Y-3.31%
OM growth 3Y4.36%
OM growth 5Y4.16%
PM growth 3Y5.11%
PM growth 5Y4.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.1 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 54.32% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.57% | ||
| Profit Quality | 100.84% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.31%
ROIC/WACC1.43
Cap/Depr(3y)76.04%
Cap/Depr(5y)92.06%
Cap/Sales(3y)1.57%
Cap/Sales(5y)2.01%
Profit Quality(3y)104.75%
Profit Quality(5y)118%
High Growth Momentum
Growth
EPS 1Y (TTM)16.34%
EPS 3Y18.13%
EPS 5Y11.51%
EPS Q2Q%18.52%
EPS Next Y10.71%
EPS Next 2Y7.03%
EPS Next 3Y6.85%
EPS Next 5YN/A
Revenue 1Y (TTM)11.6%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%9.3%
Revenue Next Year1.99%
Revenue Next 2Y2.7%
Revenue Next 3Y4.12%
Revenue Next 5YN/A
EBIT growth 1Y11.4%
EBIT growth 3Y15.11%
EBIT growth 5Y16.08%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.45%
FCF growth 3Y7.25%
FCF growth 5Y14.3%
OCF growth 1Y18.67%
OCF growth 3Y6.52%
OCF growth 5Y13.58%