NYSE:MBI

Stock Analysis Report

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Market Cap

US$709.3m

Last Updated

2021/07/31 22:50 UTC

Data Sources

Company Financials +

Executive Summary

MBIA Inc. provides financial insurance services to public finance markets. More Details


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MBI's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

9.3%

MBI

0.8%

US Insurance

-0.5%

US Market


1 Year Return

62.9%

MBI

31.3%

US Insurance

35.9%

US Market

Return vs Industry: MBI exceeded the US Insurance industry which returned 30.9% over the past year.

Return vs Market: MBI exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

MBIIndustryMarket
7 Day9.3%0.8%-0.5%
30 Day17.1%-1.4%0.09%
90 Day30.2%-2.4%3.2%
1 Year62.9%62.9%34.6%31.3%38.0%35.9%
3 Year27.4%27.4%34.5%24.5%62.8%52.6%
5 Year53.0%53.0%74.9%53.2%121.2%96.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MBIA 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: MBI ($13.05) is trading below our estimate of fair value ($179.81)

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


Price To Earnings Ratio

PE vs Industry: MBI is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: MBI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MBI has negative assets, so we can't compare its PB Ratio to the US Insurance industry average.


Future Growth

How is MBIA forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-44.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MBI's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if MBI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MBI's revenue is expected to decline over the next 3 years (-44.9% per year).

High Growth Revenue: MBI's revenue is forecast to decline over the next 3 years (-44.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MBI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has MBIA performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBI is currently unprofitable.

Growing Profit Margin: MBI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MBI is unprofitable, but has reduced losses over the past 5 years at a rate of 1.6% per year.

Accelerating Growth: Unable to compare MBI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MBI is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (67%).


Return on Equity

High ROE: MBI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is MBIA's financial position?


Financial Position Analysis

Short Term Liabilities: MBI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MBI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MBI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MBI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MBI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MBI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13.8% per year.


Dividend

What is MBIA current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MBI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MBI'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 MBI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MBI'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 MBI'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?

4.8yrs

Average management tenure


CEO

Bill Fallon (61 yo)

3.75yrs

Tenure

US$4,080,200

Compensation

Mr. William Charles Fallon, also known as Bill, serves as the President of National Public Finance Guarantee Corporation since 2010 and its Chief Executive Officer since July 13, 2010 also serves as its Di...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD4.08M) is above average for companies of similar size in the US market ($USD2.42M).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: MBI's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: MBI's board of directors are considered experienced (8.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MBI insiders have only sold shares 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

MBIA Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MBIA Inc.
  • Ticker: MBI
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$709.257m
  • Shares outstanding: 54.35m
  • Website: https://www.mbia.com

Number of Employees


Location

  • MBIA Inc.
  • 1 Manhattanville Road
  • Suite 301
  • Purchase
  • New York
  • 10577
  • United States

Listings


Biography

MBIA Inc. provides financial insurance services to public finance markets. It operates through United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:50
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
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.