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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$15.25|
|52 Week High||US$16.85|
|52 Week Low||US$11.56|
|1 Month Change||5.83%|
|3 Month Change||-5.69%|
|1 Year Change||28.58%|
|3 Year Change||23.28%|
|5 Year Change||39.40%|
|Change since IPO||114.98%|
Recent News & Updates
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...
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.
|MTG||US Mortgage||US Market|
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.
|MTG Average Weekly Movement||4.1%|
|Mortgage Industry Average Movement||3.8%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.4%|
|10% least volatile stocks in US Market||2.4%|
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
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
|MTG fundamental statistics|
Is MTG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MTG income statement (TTM)|
|Cost of Revenue||US$334.60m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 02, 2022
|Earnings per share (EPS)||1.88|
|Net Profit Margin||51.30%|
How did MTG perform over the long term?See historical performance and comparison
2.1%Current Dividend Yield
Is MGIC Investment undervalued compared to its fair value and its price relative to the market?
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.
How is MGIC Investment forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
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%).
How has MGIC Investment performed over the past 5 years?
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.
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
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.
What is MGIC Investment current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Mattke (45 yo)
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.
Experienced Management: MTG's management team is considered experienced (2.5 years average tenure).
Experienced Board: MTG's board of directors are considered experienced (8.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
MGIC Investment Corporation's employee growth, exchange listings and data sources
- 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
- MGIC Investment Corporation
- MGIC Plaza
- 250 East Kilbourn Avenue
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/26 23:58|
|End of Day Share Price||2022/01/26 00:00|
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.