(MTG) MGIC Investment - Overview
Sector: Financial Services | Industry: Insurance - Specialty | Exchange: NYSE (USA) | Market Cap: 5.535m USD | Total Return: -0.7% in 12m
Avg Turnover: 46.9M
EPS Trend: 92.9%
Qual. Beats: 0
Rev. Trend: 88.8%
Qual. Beats: -2
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
MGIC Investment Corporation (MTG) is a provider of private mortgage insurance (PMI) and credit risk management solutions across the United States and its territories. The company primarily offers default protection on residential mortgage loans, covering unpaid principal, interest, and foreclosure expenses for a client base that includes commercial banks, credit unions, and mortgage lenders. Beyond insurance, the firm provides contract underwriting and reinsurance services to facilitate mortgage originations.
The private mortgage insurance industry operates as a critical component of the housing finance market by allowing borrowers to purchase homes with down payments of less than 20% while protecting lenders against loss. MGICs business model is highly sensitive to macroeconomic factors, particularly national home price appreciation and employment rates, which directly impact claim frequency and severity. Investors looking for deeper insights into these industry drivers can find comprehensive data on ValueRay.
Founded in 1957 and headquartered in Milwaukee, Wisconsin, the company functions as a key counterparty to Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac. By assuming a portion of the credit risk on low-down-payment loans, MTG helps lenders meet the capital standards required to sell mortgages into the secondary market.
- New insurance written volume fluctuates with US residential mortgage origination levels
- Persistently low unemployment rates drive down mortgage delinquency and claim costs
- Rising interest rates impact refinancing activity and persistency of insurance in force
- Capital allocation strategy and share buybacks influence earnings per share growth
- Regulatory changes to GSE capital requirements affect private mortgage insurance demand
| Net Income: 718.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -0.59 > 1.0 |
| NWC/Revenue: 461.9% < 20% (prev 466.5%; Δ -4.61% < -1%) |
| CFO/TA 0.11 > 3% & CFO 706.0m > Net Income 718.2m |
| Net Debt (-5.29b) to EBITDA (912.5m): -5.80 < 3 |
| Current Ratio: 10.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (218.2m) vs 12m ago -11.48% < -2% |
| Gross Margin: 93.58% > 18% (prev 1.00%; Δ 9.26k% > 0.5%) |
| Asset Turnover: 18.60% > 50% (prev 18.66%; Δ -0.06% > 0%) |
| Interest Coverage Ratio: 26.33 > 6 (EBITDA TTM 912.5m / Interest Expense TTM 34.5m) |
| A: 0.87 (Total Current Assets 6.16b - Total Current Liabilities 591.7m) / Total Assets 6.42b |
| B: 0.50 (Retained Earnings 3.20b / Total Assets 6.42b) |
| C: 0.14 (EBIT TTM 908.4m / Avg Total Assets 6.48b) |
| D: 2.35 (Book Value of Equity 3.24b / Total Liabilities 1.38b) |
| Altman-Z'' = 10.72 = AAA |
| DSRI: 1.21 (Receivables 202.5m/168.8m, Revenue 1.20b/1.22b) |
| GMI: 1.07 (GM 93.58% / 100.1%) |
| AQI: 1.00 (AQ_t 0.04 / AQ_t-1 0.04) |
| SGI: 0.99 (Revenue 1.20b / 1.22b) |
| TATA: 0.00 (NI 718.2m - CFO 706.0m) / TA 6.42b) |
| Beneish M = -2.79 (Cap -4..+1) = A |
As of May 28, 2026, the stock is trading at USD 25.86 with a total of 1,357,030 shares traded.
Over the past week, the price has changed by -0.81%,
over one month by -10.41%,
over three months by -1.96% and
over the past year by -0.66%.
MGIC Investment has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold MTG.
- StrongBuy: 0
- Buy: 1
- Hold: 4
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 28.8 | 11.4% |
P/E Trailing = 8.3079
P/E Forward = 8.4388
P/S = 4.5951
P/B = 1.0987
P/EG = 0.396
Revenue TTM = 1.20b USD
EBIT TTM = 908.4m USD
EBITDA TTM = 912.5m USD
Long Term Debt = 646.5m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 646.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -5.29b USD (calculated: Debt 646.5m - CCE 5.94b)
Enterprise Value = 243.0m USD (5.53b + Debt 646.5m - CCE 5.94b)
Interest Coverage Ratio = 26.33 (Ebit TTM 908.4m / Interest Expense TTM 34.5m)
EV/FCF = 0.34x (Enterprise Value 243.0m / FCF TTM 705.0m)
FCF Yield = 290.1% (FCF TTM 705.0m / Enterprise Value 243.0m)
FCF Margin = 58.53% (FCF TTM 705.0m / Revenue TTM 1.20b)
Net Margin = 59.63% (Net Income TTM 718.2m / Revenue TTM 1.20b)
Gross Margin = 93.58% ((Revenue TTM 1.20b - Cost of Revenue TTM 77.3m) / Revenue TTM)
Gross Margin QoQ = 88.40% (prev 89.55%)
Tobins Q-Ratio = 0.04 (Enterprise Value 243.0m / Total Assets 6.42b)
Interest Expense / Debt = 5.34% (Interest Expense 34.5m / Debt 646.5m)
Taxrate = 20.08% (41.5m / 206.8m)
NOPAT = 726.0m (EBIT 908.4m * (1 - 20.08%))
Current Ratio = 10.40 (Total Current Assets 6.16b / Total Current Liabilities 591.7m)
Debt / Equity = 0.13 (Debt 646.5m / totalStockholderEquity, last quarter 5.04b)
Debt / EBITDA = -5.80 (Net Debt -5.29b / EBITDA 912.5m)
Debt / FCF = -7.51 (Net Debt -5.29b / FCF TTM 705.0m)
Total Stockholder Equity = 5.13b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.09% (Net Income 718.2m / Total Assets 6.42b)
RoE = 14.00% (Net Income TTM 718.2m / Total Stockholder Equity 5.13b)
RoCE = 15.73% (EBIT 908.4m / Capital Employed (Equity 5.13b + L.T.Debt 646.5m))
RoIC = 12.86% (NOPAT 726.0m / Invested Capital 5.64b)
WACC = 7.17% (E(5.53b)/V(6.18b) * Re(7.51%) + D(646.5m)/V(6.18b) * Rd(5.34%) * (1-Tc(0.20)))
Discount Rate = 7.51% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -10.34%
[DCF] Terminal Value 74.46% ; FCFF base≈725.7m ; Y1≈686.8m ; Y5≈646.3m
[DCF] Fair Price = 73.18 (EV 10.2b - Net Debt -5.29b = Equity 15.5b / Shares 211.5m; r=8.35% [WACC [floored]]; 5y FCF grow -6.86% → 2.50% )
EPS Correlation: 92.87 | EPS CAGR: 9.01% | SUE: -0.22 | # QB: 0
Revenue Correlation: 88.80 | Revenue CAGR: 2.11% | SUE: -1.41 | # QB: -2
EPS current Quarter (2026-06-30): EPS=0.76 | Chg30d=-1.30% | Revisions=-20% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.77 | Chg30d=-1.29% | Revisions=-20% | Analysts=4
EPS current Year (2026-12-31): EPS=3.05 | Chg30d=-0.52% | Revisions=+0% | GrowthEPS=-2.7% | GrowthRev=-0.8%
EPS next Year (2027-12-31): EPS=3.31 | Chg30d=-1.34% | Revisions=+0% | GrowthEPS=+8.2% | GrowthRev=+2.6%
[Analyst] Revisions Ratio: -20%