NMI HOLDINGS INC (NMIH) Stock Fundamental Analysis
NASDAQ:NMIH - Nasdaq - US6292093050 - Common Stock - Currency: USD
NMIH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. While NMIH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NMIH is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years NMIH had a positive operating cash flow.
1.2 Ratios
NMIH has a better Return On Assets (10.75%) than 92.08% of its industry peers.
NMIH's Return On Equity of 16.24% is fine compared to the rest of the industry. NMIH outperforms 74.26% of its industry peers.
The Return On Invested Capital of NMIH (12.00%) is better than 85.15% of its industry peers.
NMIH had an Average Return On Invested Capital over the past 3 years of 12.44%. This is in line with the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.75% | ||
| ROE | 16.24% | ||
| ROIC | 12% |
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 55.32%. This is amongst the best in the industry. NMIH outperforms 94.06% of its industry peers.
NMIH's Profit Margin has improved in the last couple of years.
The Operating Margin of NMIH (76.86%) is better than 95.05% of its industry peers.
NMIH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.86% | ||
| PM (TTM) | 55.32% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NMIH is still creating some value.
Compared to 1 year ago, NMIH has less shares outstanding
Compared to 5 years ago, NMIH has more shares outstanding
Compared to 1 year ago, NMIH has an improved debt to assets ratio.
2.2 Solvency
NMIH has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.07, NMIH belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that NMIH is not too dependend on debt financing.
NMIH has a Debt to Equity ratio of 0.19. This is in the better half of the industry: NMIH outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | N/A |
ROIC/WACC1.31
WACC9.18%
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 16.34% over the past year.
NMIH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.51% yearly.
Looking at the last year, NMIH shows a quite strong growth in Revenue. The Revenue has grown by 12.43% in the last year.
NMIH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.44% yearly.
EPS 1Y (TTM)16.34%
EPS 3Y18.13%
EPS 5Y11.51%
EPS Q2Q%18.52%
Revenue 1Y (TTM)12.43%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%26.78%
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 6.42% on average per year.
Based on estimates for the next years, NMIH will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y4.82%
EPS Next 2Y6.41%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year4.68%
Revenue Next 2Y4.89%
Revenue Next 3Y6.11%
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.
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
NMIH is valuated reasonably with a Price/Earnings ratio of 8.14.
78.22% of the companies in the same industry are more expensive than NMIH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 23.99, NMIH is valued rather cheaply.
A Price/Forward Earnings ratio of 7.50 indicates a rather cheap valuation of NMIH.
70.30% of the companies in the same industry are more expensive than NMIH, based on the Price/Forward Earnings ratio.
NMIH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.14 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
NMIH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NMIH is cheaper than 87.13% of the companies in the same industry.
83.17% of the companies in the same industry are more expensive than NMIH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NMIH may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)0.71
EPS Next 2Y6.41%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
No dividends for NMIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.24
+0.27 (+0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.77%
Inst Owner Change-0.26%
Ins Owners1.38%
Ins Owner Change2.17%
Market Cap2.99B
Analysts81.54
Price Target42.67 (11.58%)
Short Float %1.86%
Short Ratio2.22
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)-3.73%
Min EPS beat(2)-6.75%
Max EPS beat(2)-0.71%
EPS beat(4)2
Avg EPS beat(4)3.03%
Min EPS beat(4)-6.75%
Max EPS beat(4)12.26%
EPS beat(8)6
Avg EPS beat(8)4.41%
EPS beat(12)10
Avg EPS beat(12)4.82%
EPS beat(16)13
Avg EPS beat(16)3.87%
Revenue beat(2)0
Avg Revenue beat(2)-5.26%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-4.14%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-2.03%
Revenue beat(8)0
Avg Revenue beat(8)-3.63%
Revenue beat(12)4
Avg Revenue beat(12)-0.51%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)-1.34%
PT rev (3m)-1.75%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-5.31%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.14 | ||
| Fwd PE | 7.5 | ||
| P/S | 4.6 | ||
| P/FCF | 7.74 | ||
| P/OCF | 7.61 | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 6.51 |
EPS(TTM)4.7
EY12.29%
EPS(NY)5.1
Fwd EY13.33%
FCF(TTM)4.94
FCFY12.91%
OCF(TTM)5.03
OCFY13.15%
SpS8.31
BVpS28.32
TBVpS28.27
PEG (NY)1.69
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.75% | ||
| ROE | 16.24% | ||
| ROCE | 15.41% | ||
| ROIC | 12% | ||
| ROICexc | 12.2% | ||
| ROICexgc | 13.95% | ||
| OM | 76.86% | ||
| PM (TTM) | 55.32% | ||
| GM | N/A | ||
| FCFM | 59.4% |
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 | 0.19 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 57.85% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 35.7 | ||
| Cash Conversion | 76.84% | ||
| Profit Quality | 107.39% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC9.18%
ROIC/WACC1.31
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 Y4.82%
EPS Next 2Y6.41%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue 1Y (TTM)12.43%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%26.78%
Revenue Next Year4.68%
Revenue Next 2Y4.89%
Revenue Next 3Y6.11%
Revenue Next 5YN/A
EBIT growth 1Y12.44%
EBIT growth 3Y15.11%
EBIT growth 5Y16.08%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.02%
FCF growth 3Y7.25%
FCF growth 5Y14.3%
OCF growth 1Y14.86%
OCF growth 3Y6.52%
OCF growth 5Y13.58%