DB:MBJ

Stock Analysis Report

Executive Summary

MBIA Inc. provides financial guarantee insurance services to public finance markets.


Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has MBIA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MBJ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

MBJ

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

0.4%

MBJ

27.1%

DE Insurance

14.8%

DE Market

Return vs Industry: MBJ underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: MBJ underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

MBJIndustryMarket
7 Day3.1%0.4%0.07%
30 Day1.2%0.8%1.9%
90 Day-4.0%4.5%7.1%
1 Year0.4%0.4%32.7%27.1%18.4%14.8%
3 Year-20.1%-20.1%64.7%44.8%17.4%7.0%
5 Year7.1%7.1%95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

How volatile is MBIA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is MBIA undervalued compared to its fair value and its price relative to the market?

0.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MBJ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MBJ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MBJ is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: MBJ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MBJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MBJ is good value based on its PB Ratio (0.7x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is MBIA forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBJ is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MBJ is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MBJ is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MBJ's revenue is expected to decline over the next 3 years (-35.9% per year).

High Growth Revenue: MBJ's revenue is forecast to decline over the next 3 years (-35.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MBJ is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has MBIA performed over the past 5 years?

-44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBJ is currently unprofitable.

Growing Profit Margin: MBJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MBJ is unprofitable, and losses have increased over the past 5 years at a rate of -44.7% per year.

Accelerating Growth: Unable to compare MBJ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MBJ is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (7.8%).


Return on Equity

High ROE: MBJ has a negative Return on Equity (-11.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MBIA's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MBJ has a low level of unsold assets or inventory.

Debt Coverage by Assets: MBJ's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MBJ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MBJ has sufficient cash runway for 1.8 years if free cash flow continues to grow at historical rates of 11.6% each year.


Financial Institutions Analysis

Asset Level: MBJ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MBJ has a sufficient allowance for bad loans.

Low Risk Liabilities: MBJ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MBJ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MBJ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MBJ has an appropriate level of bad loans.


Next Steps

Dividend

What is MBIA's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MBJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MBJ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MBJ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MBJ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MBJ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MBJ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of MBIA's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Bill Fallon (59yo)

2.3yrs

Tenure

US$13,855,479

Compensation

Mr. William Charles Fallon, also known as Bill, serves as the President of National Public Finance Guarantee Corporation since 2010 and its Chief Executive Officer since July 13, 2010 also serves as its Di ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD13.86M) is above average for companies of similar size in the German market ($USD1.28M).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

49yo

Average Age

Experienced Management: MBJ's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

68.5yo

Average Age

Experienced Board: MBJ's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: MBJ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€186,31713 Nov 19
Richard Vaughan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max Price€9.48
Sell€31,66730 Aug 19
Theodore Shasta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,900
Max Price€8.12
Sell€245,20428 Aug 19
Theodore Shasta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares29,809
Max Price€8.25
Sell€114,35108 Mar 19
Theodore Shasta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,121
Max Price€9.43

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bill Fallon (59yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$13.86m
  • Greg Diamond

    Managing Director

    • Tenure: 13.8yrs
  • Anthony McKiernan (49yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$7.09m
  • Jonathan Harris (47yo)

    General Counsel & Secretary

    • Tenure: 2.8yrs
    • Compensation: US$4.67m
  • Joe Schachinger (49yo)

    Assistant VP

    • Tenure: 2.7yrs

Board Members

  • Steve Gilbert (72yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$240.67k
  • Richard Vaughan (69yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$236.00k
  • Charlie Rinehart (72yo)

    Chairman of the Board

    • Tenure: 4.7yrs
    • Compensation: US$369.00k
  • Diane Dewbrey (54yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$100.00k
  • Bill Fallon (59yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$13.86m
  • Ted Shasta (68yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$271.00k

Company Information

MBIA Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MBIA Inc.
  • Ticker: MBJ
  • Exchange: DB
  • Founded: 1973
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$746.880m
  • Listing Market Cap: US$673.312m
  • Shares outstanding: 80.05m
  • Website: https://www.mbia.com

Number of Employees


Location

  • MBIA Inc.
  • 1 Manhattanville Road
  • Suite 301
  • Purchase
  • New York
  • 10577
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBINYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1987
MBJDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1987
MBJETLX (Eurotlx)YesCommon StockITEURJul 1987

Biography

MBIA Inc. provides financial guarantee insurance services to public finance markets. It operates through U.S. Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions and territories, as well as utilities, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, utilities, and privately issued bonds used for the financing of projects that include toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 20:42
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.