NYSE:MTG

Stock Analysis Report

Executive Summary

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States.

Snowflake

Fundamentals

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.4%

MTG

2.6%

US Mortgage

1.0%

US Market


1 Year Return

11.6%

MTG

18.4%

US Mortgage

8.0%

US Market

Return vs Industry: MTG underperformed the US Mortgage industry which returned 18.4% over the past year.

Return vs Market: MTG exceeded the US Market which returned 8% over the past year.


Shareholder returns

MTGIndustryMarket
7 Day5.4%2.6%1.0%
30 Day5.4%2.0%-0.07%
90 Day3.0%4.5%-1.0%
1 Year12.2%11.6%20.9%18.4%10.4%8.0%
3 Year58.5%57.8%42.3%32.6%46.2%36.7%
5 Year63.2%62.4%74.3%55.5%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTG ($13.74) is trading below our estimate of fair value ($28.88)

Significantly Below Fair Value: MTG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTG is good value based on its PE Ratio (7.5x) compared to the Mortgage industry average (14.3x).

PE vs Market: MTG is good value based on its PE Ratio (7.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: MTG is poor value based on its PEG Ratio (22.8x)


Price to Book Ratio

PB vs Industry: MTG is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is MGIC Investment forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTG's forecast earnings growth (0.3% per year) is below the savings rate (2.7%).

Earnings vs Market: MTG's earnings (0.3% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MTG's earnings are forecast to grow, but not significantly.

Revenue vs Market: MTG's revenue (3.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MTG's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTG's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has MGIC Investment performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MTG's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: MTG's earnings growth over the past year (38%) exceeds its 5-year average (4.7% per year).

Earnings vs Industry: MTG earnings growth over the past year (38%) exceeded the Mortgage industry 30.7%.


Return on Equity

High ROE: MTG's Return on Equity (16.3%) is considered low.


Return on Assets

ROA vs Industry: MTG has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: MTG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is MGIC Investment'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: MTG has a low level of unsold assets or inventory.

Debt Coverage by Assets: MTG's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MTG's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MTG's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Too early to tell whether MTG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MTG's dividend payments are increasing as they only just started paying a dividend.


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: MTG's dividends in 3 years are forecast to be thoroughly covered by earnings (13.3% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Tim Mattke (43yo)

0.3yrs

Tenure

US$3,153,477

Compensation

Mr. Timothy James Mattke is Chief Executive Officer of MGIC Investment Corporation (the company) and MGIC. He joined the Company in 2006. Prior to his appointment as CEO, he served as the Executive Vice Pr ...


CEO Compensation Analysis

Compensation vs. Market: Tim has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.0yrs

Average Tenure

50yo

Average Age

Experienced Management: MTG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

7.0yrs

Average Tenure

66yo

Average Age

Experienced Board: MTG's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: MTG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$61,45006 Aug 19
Daniel Arrigoni
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$12.29
BuyUS$81,87926 Oct 18
Michael Lehman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$11.70

Ownership Breakdown


Management Team

  • Mike Zimmerman

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Sal Miosi (51yo)

    President & COO

    • Tenure: 0.3yrs
    • Compensation: US$2.75m
  • Paula Maggio (50yo)

    Executive VP

    • Tenure: 1.8yrs
  • Lisa Pendergast

    VP & Treasurer

    • Tenure: 0yrs
  • Tim Mattke (43yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$3.15m
  • Deepak Khullar

    Group Chief Financial Officer

    • Tenure: 11.8yrs
  • Julie Sperber (45yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 5.6yrs
  • Jay Hughes (56yo)

    Executive Vice President of Sales & Business Development - Mortgage Guaranty Insurance Corporation

    • Tenure: 0yrs
    • Compensation: US$2.82m
  • Brian Remington

    VP & Assistant Secretary

    • Tenure: 0yrs
  • Nathan Colson

    Executive VP & CFO

    • Tenure: 0.3yrs

Board Members

  • Skip Poliner (66yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$332.00k
  • Tim Holt (66yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$315.00k
  • Mike Lehman (68yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$319.00k
  • Curt Culver (66yo)

    Non-Executive Chairman of the Board

    • Tenure: 14.8yrs
    • Compensation: US$355.00k
  • Cassandra Carr (73yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$272.00k
  • Kenny Jastrow (71yo)

    Lead Director

    • Tenure: 10yrs
    • Compensation: US$308.00k
  • Dan Arrigoni (68yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$314.00k
  • Pat Sinks (62yo)

    Vice Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: US$7.97m
  • Mark Zandi (60yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$263.00k
  • Tim Mattke (43yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$3.15m

Company Information

MGIC Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MGIC Investment Corporation
  • Ticker: MTG
  • Exchange: NYSE
  • Founded: 1957
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$4.866b
  • Shares outstanding: 354.15m
  • Website: https://mtg.mgic.com

Number of Employees


Location

  • MGIC Investment Corporation
  • MGIC Plaza
  • 250 East Kilbourn Avenue
  • Milwaukee
  • Wisconsin
  • 53202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTGNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1991
MGCDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1991
MTG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1991

Biography

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:41
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.