NYSE:MBI

Stock Analysis Report

Executive Summary

MBIA Inc. provides financial guarantee insurance services to public finance markets.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.


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


Market Performance


7 Day Return

1.9%

NYSE:MBI

-1.5%

US Insurance

-1.0%

US Market


1 Year Return

-15.9%

NYSE:MBI

8.4%

US Insurance

-0.4%

US Market

MBI underperformed the Insurance industry which returned 8.4% over the past year.

MBI underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

MBIIndustryMarket
7 Day1.9%-1.5%-1.0%
30 Day-3.0%-3.1%-3.3%
90 Day0.1%2.3%0.8%
1 Year-15.9%-15.9%11.0%8.4%1.9%-0.4%
3 Year14.1%14.1%44.7%33.9%39.4%30.4%
5 Year-11.1%-11.1%66.5%46.8%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

0.75x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for MBIA to establish if it is available at moderate discount.

Unable to calculate intrinsic value for MBIA to establish if it is available at substantial discount.


Price Based on Earnings

MBIA is loss making, we can't compare its value to the US Insurance industry average.

MBIA is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for MBIA, we can't assess if its growth is good value.


Price Based on Value of Assets

MBIA is good value based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

34.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MBIA's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

MBIA is not considered high growth as it is expected to be loss making for the next 1-3 years.

MBIA's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Unable to compare MBIA's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare MBIA's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if MBIA will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has MBIA performed over the past 5 years?

-53.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MBIA does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare MBIA's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare MBIA's 1-year growth to the US Insurance industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if MBIA has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

MBIA used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if MBIA improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is MBIA's financial position?


Financial Position Analysis

MBIA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

MBIA's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MBIA's level of debt (553.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (229% vs 553.2% today).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


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.

MBIA has sufficient cash runway for more than 3 years based on current free cash flow.

MBIA has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 0.4% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate MBIA's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate MBIA's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as MBIA has not reported any payouts.

Unable to verify if MBIA's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as MBIA has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Bill Fallon (59yo)

1.9yrs

Tenure

US$13,855,479

Compensation

Mr. William Charles Fallon, also known as Bill, serves as the President of National Public Finance Guarantee Corporation and served as its Chief Executive Officer. Mr. Fallon serves as the Chief Operating  ...


CEO Compensation Analysis

Bill's remuneration is higher than average for companies of similar size in United States of America.

Bill's compensation has increased whilst company is loss making.


Management Age and Tenure

2.4yrs

Average Tenure

49.5yo

Average Age

The tenure for the MBIA management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

69yo

Average Age

The tenure for the MBIA board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$129,21008 Mar 19
Theodore Shasta
EntityIndividual
Role
Member of the Board of Directors
Shares12,121
Max PriceUS$10.66
SellUS$2,219,68615 Nov 18
Fine Capital Partners, L.P.
EntityCompany
Shares245,005
Max PriceUS$9.10
SellUS$3,604,71309 Nov 18
Fine Capital Partners, L.P.
EntityCompany
Shares358,000
Max PriceUS$10.10

Ownership Breakdown


Management Team

  • Bill Fallon (59yo)

    CEO & Director

    • Tenure: 1.9yrs
    • Compensation: $13.86m
  • Greg Diamond

    Managing Director

    • Tenure: 13.3yrs
  • Anthony McKiernan (49yo)

    Executive VP & CFO

    • Tenure: 3.4yrs
    • Compensation: $7.09m
  • Jonathan Harris (47yo)

    General Counsel & Secretary

    • Tenure: 2.4yrs
    • Compensation: $4.67m
  • Joseph Schachinger (50yo)

    Assistant VP

    • Tenure: 2.3yrs

Board Members

  • Steve Gilbert (72yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $240.67k
  • Richard Vaughan (69yo)

    Director

    • Tenure: 12.0yrs
    • Compensation: $236.00k
  • Charlie Rinehart (72yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: $369.00k
  • Diane Dewbrey (54yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: $100.00k
  • Bill Fallon (59yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: $13.86m
  • Frank Chin (69yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: $211.00k
  • Ted Shasta (68yo)

    Director

    • Tenure: 10.0yrs
    • Compensation: $271.00k

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$783.997m
  • Shares outstanding: 84.76m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBINYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1987
MBJDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1987

Biography

MBIA Inc. provides financial guarantee insurance services to public finance markets. It operates through U.S. Public Finance Insurance, and International and Structured Finance Insurance segments. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:42
End of Day Share Price2019/08/16 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.