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MTG

MGIC InvestmentNYSE:MTG Stock Report

Last Price

US$15.25

Market Cap

US$5.0b

7D

-3.0%

1Y

28.6%

Updated

26 Jan, 2022

Data

Company Financials +
MTG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends3/6

MTG Stock Overview

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, Puerto Rico, and Guam.

MGIC Investment Competitors

Essent Group

NYSE:ESNT

US$5.0b

Federal National Mortgage Association

OTCPK:FNMA

US$4.7b

Radian Group

NYSE:RDN

US$4.0b

PennyMac Financial Services

NYSE:PFSI

US$3.8b

Price History & Performance

Summary of all time highs, changes and price drops for MGIC Investment
Historical stock prices
Current Share PriceUS$15.25
52 Week HighUS$16.85
52 Week LowUS$11.56
Beta1.71
1 Month Change5.83%
3 Month Change-5.69%
1 Year Change28.58%
3 Year Change23.28%
5 Year Change39.40%
Change since IPO114.98%

Recent News & Updates

Nov 01
MGIC Investment's (NYSE:MTG) Shareholders Will Receive A Bigger Dividend Than Last Year

MGIC Investment's (NYSE:MTG) Shareholders Will Receive A Bigger Dividend Than Last Year

MGIC Investment Corporation ( NYSE:MTG ) will increase its dividend on the 23rd of November to US$0.08. Even though the...

Oct 31

MGIC: Mortgage Insurer Gets The Excess Cash Flowing

MGIC announced a major stock buyback program. I expect steady large share repurchases in the years ahead. MGIC's conservative credit risk management over the past decade has sharply reduced its regulatory capital requirement, allowing for strong excess cash flow generation. I believe that this $16 stock is worth $30.

Shareholder Returns

MTGUS MortgageUS Market
7D-3.0%-3.3%-5.1%
1Y28.6%-12.9%3.3%

Return vs Industry: MTG exceeded the US Mortgage industry which returned -12.9% over the past year.

Return vs Market: MTG exceeded the US Market which returned 3.3% over the past year.

Price Volatility

Is MTG's price volatile compared to industry and market?
MTG volatility
MTG Average Weekly Movement4.1%
Mortgage Industry Average Movement3.8%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: MTG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MTG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1957739Tim Mattkehttps://mtg.mgic.com

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, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides contract underwriting services; and other services for the mortgage finance industry, such as analysis of loan originations and portfolios, and mortgage lead generation services, as well as reinsurance.

MGIC Investment Fundamentals Summary

How do MGIC Investment's earnings and revenue compare to its market cap?
MTG fundamental statistics
Market CapUS$4.97b
Earnings (TTM)US$612.48m
Revenue (TTM)US$1.19b

8.1x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTG income statement (TTM)
RevenueUS$1.19b
Cost of RevenueUS$334.60m
Gross ProfitUS$859.24m
ExpensesUS$246.76m
EarningsUS$612.48m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 02, 2022

Earnings per share (EPS)1.88
Gross Margin71.97%
Net Profit Margin51.30%
Debt/Equity Ratio25.5%

How did MTG perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

14%

Payout Ratio

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 ($15.25) is trading below our estimate of fair value ($46.27)

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 (8.1x) compared to the US Mortgage industry average (12.8x).

PE vs Market: MTG is good value based on its PE Ratio (8.1x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: MTG is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: MTG's PB Ratio (1x) is in line with the US Mortgage industry average.


Future Growth

How is MGIC Investment forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTG's forecast earnings growth (3.2% per year) is above the savings rate (2%).

Earnings vs Market: MTG's earnings (3.2% per year) are forecast to grow slower than the US market (12.9% per year).

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

Revenue vs Market: MTG's revenue (2.2% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: MTG's revenue (2.2% 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 (12.5%).


Past Performance

How has MGIC Investment performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTG has high quality earnings.

Growing Profit Margin: MTG's current net profit margins (51.3%) are higher than last year (39%).


Past Earnings Growth Analysis

Earnings Trend: MTG's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: MTG's earnings growth over the past year (29.8%) exceeds its 5-year average (9.1% per year).

Earnings vs Industry: MTG earnings growth over the past year (29.8%) underperformed the Mortgage industry 32%.


Return on Equity

High ROE: MTG's Return on Equity (12.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: MTG's Assets to Equity ratio (1.5x) 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, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if MTG has an appropriate level of Loans to Assets ratio.

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

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


Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTG's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: MTG's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MTG has been paying a dividend for less than 10 years.

Growing Dividend: MTG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.4%), MTG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTG's dividends in 3 years are forecast to be well covered by earnings (15.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Tim Mattke (45 yo)

2.5yrs

Tenure

US$5,517,169

Compensation

Mr. Timothy James Mattke, also known as Tim, is Chief Executive Officer of MGIC Investment Corporation and MGIC since 2019. He has been Director of MGIC Investment Corp. He joined the MGIC Investment Corpo...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD5.52M) is about average for companies of similar size in the US market ($USD6.49M).

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


Leadership Team

Experienced Management: MTG's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: MTG's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

MGIC Investment Corporation's 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
  • Implied Market Cap: US$4.965b
  • Shares outstanding: 325.58m
  • Website: https://mtg.mgic.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 23:58
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.