NMI Holdings
Market Cap
US$1.9b
Last Updated
2020/11/29 00:29 UTC
Data Sources
Company Financials +
Executive Summary
NMI Holdings, Inc., through its subsidiaries, provides private mortgage guaranty insurance services in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with moderate growth potential.
Similar Companies
Share Price & News
How has NMI Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NMIH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: NMIH's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
0.4%
NMIH
-0.06%
US Mortgage
2.8%
US Market
1 Year Return
-32.1%
NMIH
-10.6%
US Mortgage
20.9%
US Market
Return vs Industry: NMIH underperformed the US Mortgage industry which returned -10.6% over the past year.
Return vs Market: NMIH underperformed the US Market which returned 20.7% over the past year.
Shareholder returns
| NMIH | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | -0.06% | 2.8% |
| 30 Day | 5.5% | 7.6% | 11.1% |
| 90 Day | 31.8% | -8.5% | 6.5% |
| 1 Year | -32.1%-32.1% | -7.8%-10.6% | 23.6%20.9% |
| 3 Year | 32.9%32.9% | 12.7%3.6% | 47.3%37.6% |
| 5 Year | 224.8%224.8% | 36.0%17.6% | 94.3%72.9% |
Long-Term Price Volatility Vs. Market
How volatile is NMI Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Controller Julie Norberg Just Sold A Bunch Of Shares In NMI Holdings, Inc. (NASDAQ:NMIH)2 weeks ago | Simply Wall St
Earnings Beat: NMI Holdings, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models1 month ago | Simply Wall St
Are Insiders Selling NMI Holdings, Inc. (NASDAQ:NMIH) Stock?Valuation
Is NMI Holdings undervalued compared to its fair value and its price relative to the market?
42.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NMIH ($22.8) is trading below our estimate of fair value ($39.92)
Significantly Below Fair Value: NMIH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NMIH is good value based on its PE Ratio (9.7x) compared to the US Mortgage industry average (12.3x).
PE vs Market: NMIH is good value based on its PE Ratio (9.7x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: NMIH is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: NMIH is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage industry average (0.9x).
Next Steps
Future Growth
How is NMI Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
21.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NMIH's forecast earnings growth (21.2% per year) is above the savings rate (2.2%).
Earnings vs Market: NMIH's earnings (21.2% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NMIH's revenue (12% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: NMIH's revenue (12% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NMIH's Return on Equity is forecast to be low in 3 years time (14.8%).
Next Steps
Past Performance
How has NMI Holdings performed over the past 5 years?
51.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NMIH has high quality earnings.
Growing Profit Margin: NMIH's current net profit margins (40.5%) are lower than last year (44.9%).
Past Earnings Growth Analysis
Earnings Trend: NMIH has become profitable over the past 5 years, growing earnings by 51.3% per year.
Accelerating Growth: NMIH's earnings growth over the past year (10.2%) is below its 5-year average (51.3% per year).
Earnings vs Industry: NMIH earnings growth over the past year (10.2%) exceeded the Mortgage industry 4.6%.
Return on Equity
High ROE: NMIH's Return on Equity (13.3%) is considered low.
Next Steps
Financial Health
How is NMI Holdings'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
Financial Institutions Analysis
Asset Level: NMIH's Assets to Equity ratio (1.6x) is low.
Allowance for Bad Loans: Insufficient data to determine if NMIH has a sufficient allowance for bad loans.
Low Risk Liabilities: NMIH reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.
Loan Level: Insufficient data to determine if NMIH has an appropriate level of Loans to Assets ratio.
Low Risk Deposits: NMIH reports no customer deposits, loans are made up entirely of externally borrowed funds.
Level of Bad Loans: Insufficient data to determine if NMIH has an appropriate level of bad loans.
Next Steps
Dividend
What is NMI Holdings's current dividend yield, its reliability and sustainability?
0.25%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NMIH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NMIH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NMIH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NMIH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NMIH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Claudia Merkle (61 yo)
1.83yrs
Tenure
US$3,464,985
Compensation
Ms. Claudia J. Merkle is Chief Executive Officer and Director of NMI Holdings, Inc since January 1, 2019. Ms. Merkle served as President of NMI Holdings, Inc since May 10, 2018 until 2018. She serves as Ch...
CEO Compensation Analysis
Compensation vs Market: Claudia's total compensation ($USD3.46M) is about average for companies of similar size in the US market ($USD4.17M).
Compensation vs Earnings: Claudia's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.58yrs | US$3.46m | 0.67% $ 13.0m | |
| CEO & Director | 1.83yrs | US$3.46m | 0.059% $ 1.1m | |
| CFO & Executive VP | 3.5yrs | US$2.35m | 0.038% $ 725.5k | |
| Executive VP & COO | 2.5yrs | US$1.89m | 0.034% $ 653.2k | |
| Executive VP | 6.83yrs | US$2.16m | 0.11% $ 2.1m | |
| Vice President of Investor Relations & Treasury | 5.83yrs | no data | no data | |
| Senior VP & Chief Sales Officer | no data | no data | no data | |
| Chief Human Resources Officer & Senior VP | 4.67yrs | no data | no data | |
| Executive VP & Chief Risk Officer | 2.5yrs | no data | 0.010% $ 200.9k | |
| Controller | no data | no data | 0.0022% $ 41.6k |
3.5yrs
Average Tenure
54.5yo
Average Age
Experienced Management: NMIH's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.58yrs | US$3.46m | 0.67% $ 13.0m | |
| CEO & Director | 1.83yrs | US$3.46m | 0.059% $ 1.1m | |
| Independent Lead Director | 8.5yrs | US$205.00k | 0.075% $ 1.5m | |
| Independent Director | 8.58yrs | US$205.00k | 0.092% $ 1.8m | |
| Independent Director | 8.33yrs | US$205.00k | 0.077% $ 1.5m | |
| Independent Director | 8.33yrs | US$205.00k | 0.18% $ 3.5m | |
| Independent Director | 1.5yrs | US$299.99k | 0.0051% $ 99.2k | |
| Independent Director | 8.33yrs | US$197.50k | 0.025% $ 481.9k | |
| Independent Director | 3.67yrs | US$197.50k | 0.040% $ 769.6k |
8.3yrs
Average Tenure
65yo
Average Age
Experienced Board: NMIH's board of directors are considered experienced (8.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NMIH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.8%.
Top Shareholders
Company Information
NMI Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NMI Holdings, Inc.
- Ticker: NMIH
- Exchange: NasdaqGM
- Founded: 2011
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$1.934b
- Shares outstanding: 84.81m
- Website: https://www.nationalmi.com
Number of Employees
Location
- NMI Holdings, Inc.
- 2100 Powell Street
- 12th Floor
- Emeryville
- California
- 94608
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NMIH | NasdaqGM (Nasdaq Global Market) | Yes | Class A Common Stock | US | USD | Nov 2013 |
| 6NM | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Nov 2013 |
Biography
NMI Holdings, Inc., through its subsidiaries, provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services; and outsourced loan review services...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/29 00:29 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.