NasdaqGM:NMIH

Stock Analysis Report

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Executive Summary

NMI Holdings, Inc., through its subsidiaries, provides private mortgage guaranty insurance services in the United States. More Details


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

NMIHIndustryMarket
7 Day0.4%-0.06%2.8%
30 Day5.5%7.6%11.1%
90 Day31.8%-8.5%6.5%
1 Year-32.1%-32.1%-7.8%-10.6%23.6%20.9%
3 Year32.9%32.9%12.7%3.6%47.3%37.6%
5 Year224.8%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

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

NamePositionTenureCompensationOwnership
Bradley Shuster
Executive Chairman8.58yrsUS$3.46m0.67%
$ 13.0m
Claudia Merkle
CEO & Director1.83yrsUS$3.46m0.059%
$ 1.1m
Adam Pollitzer
CFO & Executive VP3.5yrsUS$2.35m0.038%
$ 725.5k
Patrick Mathis
Executive VP & COO2.5yrsUS$1.89m0.034%
$ 653.2k
William Leatherberry
Executive VP6.83yrsUS$2.16m0.11%
$ 2.1m
John Swenson
Vice President of Investor Relations & Treasury5.83yrsno datano data
Norman Fitzgerald
Senior VP & Chief Sales Officerno datano datano data
Mary Sharp
Chief Human Resources Officer & Senior VP4.67yrsno datano data
Robert Smith
Executive VP & Chief Risk Officer2.5yrsno data0.010%
$ 200.9k
Julie Norberg
Controllerno datano data0.0022%
$ 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

NamePositionTenureCompensationOwnership
Bradley Shuster
Executive Chairman8.58yrsUS$3.46m0.67%
$ 13.0m
Claudia Merkle
CEO & Director1.83yrsUS$3.46m0.059%
$ 1.1m
Steven Scheid
Independent Lead Director8.5yrsUS$205.00k0.075%
$ 1.5m
James Ozanne
Independent Director8.58yrsUS$205.00k0.092%
$ 1.8m
Michael Embler
Independent Director8.33yrsUS$205.00k0.077%
$ 1.5m
James Jones
Independent Director8.33yrsUS$205.00k0.18%
$ 3.5m
Lynn McCreary
Independent Director1.5yrsUS$299.99k0.0051%
$ 99.2k
Michael Montgomery
Independent Director8.33yrsUS$197.50k0.025%
$ 481.9k
Regina Muehlhauser
Independent Director3.67yrsUS$197.50k0.040%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMIHNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDNov 2013
6NMDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 00:29
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.