NMI Holdings
Market Cap
US$2.3b
Last Updated
2019/12/12 00:27 UTC
Data Sources
Company Financials +
Executive Summary
NMI Holdings, Inc., through its subsidiaries, provides private mortgage guaranty insurance services in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with high 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.4%
NMIH
-0.5%
US Mortgage
0.8%
US Market
1 Year Return
81.7%
NMIH
22.4%
US Mortgage
17.8%
US Market
Return vs Industry: NMIH exceeded the US Mortgage industry which returned 22.4% over the past year.
Return vs Market: NMIH exceeded the US Market which returned 17.8% over the past year.
Shareholder returns
| NMIH | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | -0.5% | 0.8% |
| 30 Day | 0.4% | -1.1% | 1.8% |
| 90 Day | 27.7% | 3.8% | 4.1% |
| 1 Year | 81.7%81.7% | 25.1%22.4% | 20.4%17.8% |
| 3 Year | 237.3%237.3% | 25.7%16.9% | 45.9%36.4% |
| 5 Year | 276.9%276.9% | 71.8%53.2% | 68.1%49.6% |
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
Can You Imagine How Chuffed NMI Holdings's (NASDAQ:NMIH) Shareholders Feel About Its 292% Share Price Gain?1 month 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
When Should You Buy NMI Holdings, Inc. (NASDAQ:NMIH)?Valuation
Is NMI Holdings undervalued compared to its fair value and its price relative to the market?
46.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NMIH ($33.73) is trading below our estimate of fair value ($63.18)
Significantly Below Fair Value: NMIH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NMIH is poor value based on its PE Ratio (14.4x) compared to the Mortgage industry average (14.4x).
PE vs Market: NMIH is good value based on its PE Ratio (14.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: NMIH is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: NMIH is overvalued based on its PB Ratio (2.6x) compared to the US Mortgage industry average (1.1x).
Next Steps
Future Growth
How is NMI Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
21.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NMIH's forecast earnings growth (21.8% per year) is above the savings rate (1.7%).
Earnings vs Market: NMIH's earnings (21.8% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NMIH's revenue (17.9% per year) is forecast to grow faster than the US market (7.4% per year).
High Growth Revenue: NMIH's revenue (17.9% 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 high in 3 years time (20%)
Next Steps
Past Performance
How has NMI Holdings performed over the past 5 years?
64.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NMIH has high quality earnings.
Growing Profit Margin: NMIH's current net profit margins (44.9%) are higher than last year (27.9%).
Past Earnings Growth Analysis
Earnings Trend: NMIH has become profitable over the past 5 years, growing earnings by 64.8% per year.
Accelerating Growth: NMIH's earnings growth over the past year (122.7%) exceeds its 5-year average (64.8% per year).
Earnings vs Industry: NMIH earnings growth over the past year (122.7%) exceeded the Mortgage industry 23.1%.
Return on Equity
High ROE: NMIH's Return on Equity (18%) is considered low.
Return on Assets
Return on Capital Employed
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
Inventory Level: NMIH has a low level of unsold assets or inventory.
Debt Coverage by Assets: NMIH's debt is covered by short term assets (assets are 1.2x debt).
Financial Institutions Analysis
Asset Level: NMIH's level of assets compared to its equity 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, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if NMIH has an acceptable proportion of non-loan assets held.
Low Risk Deposits: NMIH has advanced significantly more loans than the customer deposits it holds.
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?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NMIH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NMIH'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 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
What is the CEO of NMI Holdings's salary, the management and board of directors tenure and is there insider trading?
2.2yrs
Average management tenure
CEO
Claudia Merkle (60yo)
0.9yrs
Tenure
US$2,248,411
Compensation
Ms. Claudia J. Merkle is Chief Executive Officer and Director of NMI Holdings, Inc since January 1, 2019. Ms. Merkle served as President of NMI Holdings, Inc since May 10, 2018 until 2018. Ms. Merkle has b ...
CEO Compensation Analysis
Compensation vs Market: Claudia's total compensation ($USD2.25M) is below average for companies of similar size in the US market ($USD3.87M).
Compensation vs Earnings: Claudia's compensation has increased by more than 20% in the past year.
Management Age and Tenure
2.2yrs
Average Tenure
58.5yo
Average Age
Experienced Management: NMIH's management team is considered experienced (2.2 years average tenure).
Board Age and Tenure
7.4yrs
Average Tenure
64yo
Average Age
Experienced Board: NMIH's board of directors are considered experienced (7.4 years average tenure).
Insider Trading
Insider Buying: NMIH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$33.81 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 7,674 |
| Max Price | US$33.49 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$33.38 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 50,000 |
| Max Price | US$33.94 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP & Chief Risk Officer |
| Shares | 3,000 |
| Max Price | US$34.31 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,000 |
| Max Price | US$33.40 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Executive VP |
| Shares | 17,724 |
| Max Price | US$33.73 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 12,685 |
| Max Price | US$33.66 |
| Entity | Company |
| Shares | 5,000 |
| Max Price | US$27.88 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$27.56 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Executive VP |
| Shares | 4,821 |
| Max Price | US$28.02 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 12,500 |
| Max Price | US$27.78 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$27.86 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 12,500 |
| Max Price | US$28.02 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Executive VP |
| Shares | 4,092 |
| Max Price | US$28.05 |
| Entity | Company |
| Shares | 25,000 |
| Max Price | US$27.40 |
| Entity | Individual |
| Role | Lead Director Lead Director |
| Shares | 4,923 |
| Max Price | US$26.24 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 12,000 |
| Max Price | US$28.16 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$27.76 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 15,663 |
| Max Price | US$26.20 |
| Entity | Individual |
| Shares | 11,146 |
| Max Price | US$26.17 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.
Management Team
Brad Shuster (64yo)
Executive Chairman
- Tenure: 7.7yrs
- Compensation: US$6.71m
Mike Dirrane (62yo)
Chief Sales Officer & Senior MD
- Tenure: 1.8yrs
Pat Mathis (59yo)
Executive VP & COO
- Tenure: 1.6yrs
- Compensation: US$1.80m
Claudia Merkle (60yo)
CEO & Director
- Tenure: 0.9yrs
- Compensation: US$2.25m
Bill Leatherberry (48yo)
Executive VP
- Tenure: 5.9yrs
- Compensation: US$2.01m
Mary Sharp (58yo)
Chief Human Resources Officer & Senior VP
- Tenure: 3.8yrs
Nicholas Ondrejka
Senior VP & Chief Information Officer
- Tenure: 2.2yrs
John Swenson
Vice President of Investor Relations & Treasury
- Tenure: 4.9yrs
Adam Pollitzer (39yo)
CFO & Executive VP
- Tenure: 2.6yrs
- Compensation: US$2.16m
Rob Smith (49yo)
Executive VP & Chief Risk Officer
- Tenure: 1.6yrs
Board Members
Steve Scheid (66yo)
Lead Director
- Tenure: 7.7yrs
- Compensation: US$150.00k
Brad Shuster (64yo)
Executive Chairman
- Tenure: 7.7yrs
- Compensation: US$6.71m
James Ozanne (76yo)
Independent Director
- Tenure: 7.7yrs
- Compensation: US$150.00k
Mike Embler (55yo)
Independent Director
- Tenure: 7.4yrs
- Compensation: US$150.00k
Jim Jones (70yo)
Independent Director
- Tenure: 7.4yrs
- Compensation: US$150.00k
Claudia Merkle (60yo)
CEO & Director
- Tenure: 0.9yrs
- Compensation: US$2.25m
Lynn McCreary (59yo)
Director
- Tenure: 0.6yrs
Michael Montgomery (64yo)
Independent Director
- Tenure: 7.4yrs
- Compensation: US$150.00k
Regina Muehlhauser (70yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$150.00k
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$2.293b
- Shares outstanding: 67.98m
- 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; reinsurance on loans; and outsourced loan re ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/12 00:27 |
| End of Day Share Price | 2019/12/11 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.