NMI HOLDINGS INC (NMIH) Stock Fundamental Analysis
USA - NASDAQ:NMIH - US6292093050 - Common Stock
37.58 USD
+0.36 (+0.97%)
37.58 USD
0 (0%)
Overall NMIH gets a fundamental rating of 5 out of 10. We evaluated NMIH against 99 industry peers in the Financial Services industry. While NMIH has a great profitability rating, 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.
In the past 5 years NMIH has always been profitable.
NMIH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NMIH (10.22%) is better than 91.75% of its industry peers.
The Return On Equity of NMIH (15.14%) is better than 75.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.10%, NMIH belongs to the top of the industry, outperforming 87.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NMIH is above the industry average of 8.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 15.14% | ||
| ROIC | 11.1% |
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 better Profit Margin (55.02%) than 93.81% of its industry peers.
In the last couple of years the Profit Margin of NMIH has grown nicely.
NMIH's Operating Margin of 74.83% is amongst the best of the industry. NMIH outperforms 95.88% of its industry peers.
In the last couple of years the Operating Margin of NMIH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 74.83% | ||
| PM (TTM) | 55.02% | ||
| 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
NMIH 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 NMIH has been reduced compared to 1 year ago.
NMIH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NMIH has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of NMIH is 1.08, which is an excellent value as it means it would take NMIH, only 1.08 years of fcf income to pay off all of its debts.
NMIH has a better Debt to FCF ratio (1.08) than 82.47% of its industry peers.
NMIH has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
NMIH's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. NMIH outperforms 71.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | N/A |
ROIC/WACC1.38
WACC8.03%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
NMIH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.66%.
Measured over the past years, NMIH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.51% on average per year.
The Revenue has grown by 8.86% 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)7.66%
EPS 3Y18.13%
EPS 5Y11.51%
EPS Q2Q%5.22%
Revenue 1Y (TTM)8.86%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%5.57%
3.2 Future
Based on estimates for the next years, NMIH will show a small growth in Earnings Per Share. The EPS will grow by 7.18% on average per year.
Based on estimates for the next years, NMIH will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y11.03%
EPS Next 2Y7.48%
EPS Next 3Y7.18%
EPS Next 5YN/A
Revenue Next Year2.94%
Revenue Next 2Y4.04%
Revenue Next 3Y3.87%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.86, the valuation of NMIH can be described as very cheap.
77.32% of the companies in the same industry are more expensive than NMIH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NMIH to the average of the S&P500 Index (25.89), we can say NMIH is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.23, the valuation of NMIH can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NMIH indicates a somewhat cheap valuation: NMIH is cheaper than 70.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, NMIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NMIH is valued cheaply inside the industry as 88.66% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NMIH is valued cheaply inside the industry as 82.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
NMIH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NMIH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.71
PEG (5Y)0.68
EPS Next 2Y7.48%
EPS Next 3Y7.18%
5. Dividend
5.1 Amount
No dividends for NMIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.58
+0.36 (+0.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.95%
Inst Owner Change-0.64%
Ins Owners1.94%
Ins Owner Change-1.18%
Market Cap2.92B
Revenue(TTM)692.21M
Net Income(TTM)380.88M
Analysts80
Price Target45.46 (20.97%)
Short Float %2.18%
Short Ratio4.69
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)0
Avg EPS beat(2)-1.1%
Min EPS beat(2)-1.55%
Max EPS beat(2)-0.64%
EPS beat(4)1
Avg EPS beat(4)1.28%
Min EPS beat(4)-6.75%
Max EPS beat(4)14.08%
EPS beat(8)4
Avg EPS beat(8)3.43%
EPS beat(12)8
Avg EPS beat(12)3.96%
EPS beat(16)12
Avg EPS beat(16)4.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)-1.21%
Revenue beat(4)0
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-1.21%
Revenue beat(8)0
Avg Revenue beat(8)-3.06%
Revenue beat(12)1
Avg Revenue beat(12)-2.51%
Revenue beat(16)5
Avg Revenue beat(16)-0.5%
PT rev (1m)0.92%
PT rev (3m)0.92%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.23 | ||
| P/S | 4.21 | ||
| P/FCF | 7.54 | ||
| P/OCF | 7.41 | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 6.05 |
EPS(TTM)4.78
EY12.72%
EPS(NY)5.2
Fwd EY13.83%
FCF(TTM)4.99
FCFY13.27%
OCF(TTM)5.07
OCFY13.49%
SpS8.92
BVpS32.42
TBVpS32.37
PEG (NY)0.71
PEG (5Y)0.68
Graham Number59.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 15.14% | ||
| ROCE | 14.25% | ||
| ROIC | 11.1% | ||
| ROICexc | 11.51% | ||
| ROICexgc | 13.03% | ||
| OM | 74.83% | ||
| PM (TTM) | 55.02% | ||
| GM | N/A | ||
| FCFM | 55.89% |
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%
ROICexgc growth 3Y5.83%
ROICexgc 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 | 0.17 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 56.63% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 11.39 | ||
| Cash Conversion | 74.29% | ||
| Profit Quality | 101.57% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.03%
ROIC/WACC1.38
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)7.66%
EPS 3Y18.13%
EPS 5Y11.51%
EPS Q2Q%5.22%
EPS Next Y11.03%
EPS Next 2Y7.48%
EPS Next 3Y7.18%
EPS Next 5YN/A
Revenue 1Y (TTM)8.86%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%5.57%
Revenue Next Year2.94%
Revenue Next 2Y4.04%
Revenue Next 3Y3.87%
Revenue Next 5YN/A
EBIT growth 1Y4.52%
EBIT growth 3Y15.11%
EBIT growth 5Y16.08%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y15.93%
FCF growth 3Y7.25%
FCF growth 5Y14.3%
OCF growth 1Y14.22%
OCF growth 3Y6.52%
OCF growth 5Y13.58%
NMI HOLDINGS INC / NMIH FAQ
What is the fundamental rating for NMIH stock?
ChartMill assigns a fundamental rating of 5 / 10 to NMIH.
What is the valuation status for NMIH stock?
ChartMill assigns a valuation rating of 8 / 10 to NMI HOLDINGS INC (NMIH). This can be considered as Undervalued.
How profitable is NMI HOLDINGS INC (NMIH) stock?
NMI HOLDINGS INC (NMIH) has a profitability rating of 7 / 10.
What is the valuation of NMI HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NMI HOLDINGS INC (NMIH) is 7.86 and the Price/Book (PB) ratio is 1.16.
What is the financial health of NMI HOLDINGS INC (NMIH) stock?
The financial health rating of NMI HOLDINGS INC (NMIH) is 4 / 10.