NYSE:MBI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Overvalued with worrying 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


Market Performance


7 Day Return

1.9%

MBI

-0.01%

US Insurance

1.0%

US Market


1 Year Return

1.4%

MBI

15.1%

US Insurance

6.7%

US Market

Return vs Industry: MBI underperformed the US Insurance industry which returned 15.1% over the past year.

Return vs Market: MBI underperformed the US Market which returned 6.7% over the past year.


Share holder returns

MBIIndustryMarket
7 Day1.9%-0.01%1.0%
30 Day-1.2%-1.6%-1.8%
90 Day1.8%-3.5%-1.8%
1 Year1.4%1.4%17.9%15.1%9.1%6.7%
3 Year23.8%23.8%42.0%31.1%46.1%36.6%
5 Year4.4%4.4%74.5%53.7%66.9%48.6%

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?

0.79x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate MBI's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate MBI's fair value to establish if it is undervalued.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: MBI is good value based on its PB Ratio (0.8x) compared to the US Insurance industry average (1.2x).


Next Steps

  • Explore potentially undervalued companies in the Insurance industry.

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

Earnings vs Savings Rate: MBI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MBI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MBI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MBI's revenue is expected to decline over the next 3 years (-13% per year).

High Growth Revenue: MBI's revenue is forecast to decline over the next 3 years (-13%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: MBI is forecast to be unprofitable in 3 years.


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

Earnings Trend: MBI is unprofitable, and losses have increased over the past 5 years at a rate of -53.7% 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 (3.1%).


Return on Equity

High ROE: MBI has a negative Return on Equity (-22.7%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MBI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MBI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is MBIA'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: MBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: MBI's 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.

Stable Cash Runway: MBI has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: MBI has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -0.4% each year


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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: MBI is not paying a notable dividend for .


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

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

2.6yrs

Average management tenure


CEO

Bill Fallon (59yo)

2.1yrs

Tenure

US$13,855,479

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

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


Management Age and Tenure

2.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: MBI's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: MBI's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: MBI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$35,10030 Aug 19
Theodore Shasta
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,900
Max PriceUS$9.00
SellUS$271,99528 Aug 19
Theodore Shasta
EntityIndividual
Role
Member of the Board of Directors
Director
Shares29,809
Max PriceUS$9.15
SellUS$129,21008 Mar 19
Theodore Shasta
EntityIndividual
Role
Member of the Board of Directors
Director
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: 2.1yrs
    • Compensation: US$13.86m
  • Greg Diamond

    Managing Director

    • Tenure: 13.5yrs
  • Anthony McKiernan (49yo)

    Executive VP & CFO

    • Tenure: 3.6yrs
    • Compensation: US$7.09m
  • Jonathan Harris (47yo)

    General Counsel & Secretary

    • Tenure: 2.6yrs
    • Compensation: US$4.67m
  • Joe Schachinger (50yo)

    Assistant VP

    • Tenure: 2.4yrs

Board Members

  • Steve Gilbert (72yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$240.67k
  • Richard Vaughan (69yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$236.00k
  • Charlie Rinehart (72yo)

    Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$369.00k
  • Diane Dewbrey (54yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$100.00k
  • Bill Fallon (59yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: US$13.86m
  • Ted Shasta (68yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$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$821.290m
  • Shares outstanding: 84.76m
  • Website: https://www.mbia.com

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 Analysis2019/10/14 01:16
End of Day Share Price2019/10/11 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.

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