(MTG) MGIC Investment - Ratings and Ratios
Private Mortgage Insurance, Pool Insurance, Contract Underwriting
MTG EPS (Earnings per Share)
MTG Revenue
Description: MTG MGIC Investment
MGIC Investment Corporation is a leading provider of private mortgage insurance and mortgage credit risk management solutions in the United States. The companys primary insurance product protects lenders against mortgage defaults, covering losses on loan principal, interest, and foreclosure expenses. Additionally, MGIC offers pool insurance for secondary market transactions, contract underwriting services, and reinsurance services to originators of residential mortgage loans, including banks, credit unions, and mortgage bankers.
To evaluate the companys performance, key performance indicators (KPIs) such as the insurance-in-force (IIF) growth rate, loss ratio, and return on equity (ROE) are crucial. A growing IIF indicates increasing market share, while a stable loss ratio suggests effective risk management. With a ROE of 14.95%, MGIC demonstrates a relatively strong return on shareholder equity. Furthermore, the companys market capitalization of $6.14 billion and a forward P/E ratio of 9.13 suggest a reasonable valuation.
MGICs business model is closely tied to the US housing market, making it essential to monitor housing market trends, interest rates, and regulatory changes. The companys exposure to mortgage credit risk is a key consideration, and its ability to manage this risk through reinsurance and other strategies is vital. By analyzing MGICs financials, industry trends, and competitive landscape, investors can make informed decisions about the companys prospects.
From a trading perspective, analyzing MGICs stock price movements and volatility can provide insights into market sentiment. The stocks current price of $25.63 is near its 50-day moving average, indicating a relatively stable trend. However, the average true range (ATR) of 1.66% suggests moderate volatility, which may be influenced by market news and earnings announcements.
MTG Stock Overview
| Market Cap in USD | 6,162m |
| Sub-Industry | Commercial & Residential Mortgage Finance |
| IPO / Inception | 1991-08-06 |
MTG Stock Ratings
| Growth Rating | 84.0% |
| Fundamental | 77.2% |
| Dividend Rating | 66.1% |
| Return 12m vs S&P 500 | -4.99% |
| Analyst Rating | 3.0 of 5 |
MTG Dividends
| Dividend Yield 12m | 1.97% |
| Yield on Cost 5y | 5.93% |
| Annual Growth 5y | 19.54% |
| Payout Consistency | 63.4% |
| Payout Ratio | 17.7% |
MTG Growth Ratios
| Growth Correlation 3m | 25.1% |
| Growth Correlation 12m | 75.2% |
| Growth Correlation 5y | 89.3% |
| CAGR 5y | 31.31% |
| CAGR/Max DD 3y (Calmar Ratio) | 2.18 |
| CAGR/Mean DD 3y (Pain Ratio) | 7.62 |
| Sharpe Ratio 12m | 1.32 |
| Alpha | -6.66 |
| Beta | 0.873 |
| Volatility | 23.08% |
| Current Volume | 1430.8k |
| Average Volume 20d | 1578k |
| Stop Loss | 26.5 (-3.1%) |
| Signal | 0.48 |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (762.6m TTM) > 0 and > 6% of Revenue (6% = 73.1m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA 0.86pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -10.24% (prev 76.64%; Δ -86.88pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 771.9m > Net Income 762.6m (YES >=105%, WARN >=100%) |
| Net Debt (346.5m) to EBITDA (771.8m) ratio: 0.45 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.71 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (238.0m) change vs 12m ago -10.83% (target <= -2.0% for YES) |
| Gross Margin 94.07% (prev 81.90%; Δ 12.17pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 18.79% (prev 18.21%; Δ 0.59pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 21.40 (EBITDA TTM 771.8m / Interest Expense TTM 35.6m) >= 6 (WARN >= 3) |
Altman Z'' 4.98
| (A) -0.02 = (Total Current Assets 298.9m - Total Current Liabilities 423.7m) / Total Assets 6.49b |
| (B) 0.51 = Retained Earnings (Balance) 3.33b / Total Assets 6.49b |
| (C) 0.12 = EBIT TTM 761.8m / Avg Total Assets 6.48b |
| (D) 2.52 = Book Value of Equity 3.35b / Total Liabilities 1.33b |
| Total Rating: 4.98 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 77.23
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 11.84% = 5.0 |
| 3. FCF Margin 63.26% = 7.50 |
| 4. Debt/Equity 0.13 = 2.49 |
| 5. Debt/Ebitda 0.45 = 2.35 |
| 6. ROIC - WACC (= 1.75)% = 2.19 |
| 7. RoE 14.69% = 1.22 |
| 8. Rev. Trend 74.85% = 5.61 |
| 9. EPS Trend -22.81% = -1.14 |
What is the price of MTG shares?
Over the past week, the price has changed by -0.04%, over one month by -2.70%, over three months by +6.97% and over the past year by +10.10%.
Is MGIC Investment a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MTG is around 30.96 USD . This means that MTG is currently undervalued and has a potential upside of +13.16% (Margin of Safety).
Is MTG a buy, sell or hold?
- Strong Buy: 0
- Buy: 1
- Hold: 4
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the MTG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 27.5 | 0.5% |
| Analysts Target Price | 27.5 | 0.5% |
| ValueRay Target Price | 34.5 | 26.1% |
Last update: 2025-10-13 02:02
MTG Fundamental Data Overview
P/E Trailing = 8.7639
P/E Forward = 8.8106
P/S = 5.0566
P/B = 1.2409
P/EG = 1.54
Beta = 0.873
Revenue TTM = 1.22b USD
EBIT TTM = 761.8m USD
EBITDA TTM = 771.8m USD
Long Term Debt = 645.4m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 645.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 346.5m USD (from netDebt column, last quarter)
Enterprise Value = 6.51b USD (6.16b + Debt 645.4m - CCE 294.9m)
Interest Coverage Ratio = 21.40 (Ebit TTM 761.8m / Interest Expense TTM 35.6m)
FCF Yield = 11.84% (FCF TTM 770.9m / Enterprise Value 6.51b)
FCF Margin = 63.26% (FCF TTM 770.9m / Revenue TTM 1.22b)
Net Margin = 62.58% (Net Income TTM 762.6m / Revenue TTM 1.22b)
Gross Margin = 94.07% ((Revenue TTM 1.22b - Cost of Revenue TTM 72.3m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 96.33%)
Tobins Q-Ratio = 1.00 (Enterprise Value 6.51b / Total Assets 6.49b)
Interest Expense / Debt = 1.38% (Interest Expense 8.90m / Debt 645.4m)
Taxrate = 21.78% (53.6m / 246.1m)
NOPAT = 595.8m (EBIT 761.8m * (1 - 21.78%))
Current Ratio = 0.71 (Total Current Assets 298.9m / Total Current Liabilities 423.7m)
Debt / Equity = 0.13 (Debt 645.4m / totalStockholderEquity, last quarter 5.15b)
Debt / EBITDA = 0.45 (Net Debt 346.5m / EBITDA 771.8m)
Debt / FCF = 0.45 (Net Debt 346.5m / FCF TTM 770.9m)
Total Stockholder Equity = 5.19b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.76% (Net Income 762.6m / Total Assets 6.49b)
RoE = 14.69% (Net Income TTM 762.6m / Total Stockholder Equity 5.19b)
RoCE = 13.05% (EBIT 761.8m / Capital Employed (Equity 5.19b + L.T.Debt 645.4m))
RoIC = 10.21% (NOPAT 595.8m / Invested Capital 5.84b)
WACC = 8.46% (E(6.16b)/V(6.81b) * Re(9.23%) + D(645.4m)/V(6.81b) * Rd(1.38%) * (1-Tc(0.22)))
Discount Rate = 9.23% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -7.64%
[DCF Debug] Terminal Value 74.78% ; FCFE base≈748.2m ; Y1≈781.4m ; Y5≈904.1m
Fair Price DCF = 55.76 (DCF Value 12.85b / Shares Outstanding 230.5m; 5y FCF grow 4.72% → 3.0% )
EPS Correlation: -22.81 | EPS CAGR: -57.66% | SUE: -4.0 | # QB: 0
Revenue Correlation: 74.85 | Revenue CAGR: 1.40% | SUE: -0.46 | # QB: 0
Additional Sources for MTG Stock
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Fund Manager Positions: Dataroma | Stockcircle