NYSE:MBI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


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 +/- 9% a week.

Volatility Over Time: MBI's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

6.1%

MBI

-1.0%

US Insurance

-0.5%

US Market


1 Year Return

-31.1%

MBI

-6.3%

US Insurance

18.3%

US Market

Return vs Industry: MBI underperformed the US Insurance industry which returned -6.2% over the past year.

Return vs Market: MBI underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

MBIIndustryMarket
7 Day6.1%-1.0%-0.5%
30 Day-4.2%6.5%3.6%
90 Day-19.3%9.0%5.6%
1 Year-31.1%-31.1%-3.8%-6.3%21.0%18.3%
3 Year-21.1%-21.1%10.5%2.4%45.2%35.6%
5 Year-1.7%-1.7%45.7%27.5%89.8%68.8%

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?

1.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


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 is overvalued based on its PB Ratio (1.5x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

-22.1%

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 (2.2%).

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 (-22.1% per year).

High Growth Revenue: MBI's revenue is forecast to decline over the next 3 years (-22.1% 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


Next Steps

Past Performance

How has MBIA performed over the past 5 years?

-13.9%

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, and losses have increased over the past 5 years at a rate of 13.9% 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 (5.9%).


Return on Equity

High ROE: MBI has a negative Return on Equity (-292.59%), as it is currently unprofitable.


Next Steps

Financial Health

How is MBIA's financial position?


Financial Position Analysis

Short Term Liabilities: MBI's short term assets ($3.0B) exceed its short term liabilities ($657.0M).

Long Term Liabilities: MBI's short term assets ($3.0B) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: MBI's debt to equity ratio (1918.1%) is considered high.

Reducing Debt: MBI's debt to equity ratio has increased from 237.2% to 1918.1% over the past 5 years.


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: MBI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MBI has sufficient cash runway for 2.7 years if free cash flow continues to reduce at historical rates of 26.4% each year.


Next Steps

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?

3.7yrs

Average management tenure


CEO

Bill Fallon (60 yo)

3.17yrs

Tenure

US$4,035,225

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 ($USD4.04M) is above average for companies of similar size in the US market ($USD1.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Fallon
CEO & Director3.17yrsUS$4.04m4.44%
$ 15.5m
Anthony McKiernan
Executive VP & CFO4.67yrsUS$2.05m2.13%
$ 7.4m
Jonathan Harris
General Counsel & Secretary3.67yrsUS$1.36m1.06%
$ 3.7m
Gregory Diamond
Managing Director14.58yrsno datano data
Joseph Schachinger
Assistant VP & Controller3.5yrsno data0.24%
$ 835.4k

3.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: MBI's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Fallon
CEO & Director3.17yrsUS$4.04m4.44%
$ 15.5m
Steven Gilbert
Independent Director9.5yrsUS$258.67k0.26%
$ 922.8k
Richard Vaughan
Independent Director13.25yrsUS$248.00k0.22%
$ 767.6k
Charles Rinehart
Independent Chairman of the Board5.5yrsUS$423.00k0.24%
$ 819.0k
Diane Dewbrey
Independent Director2yrsUS$237.99k0.070%
$ 245.2k
Theodore Shasta
Independent Director11.25yrsUS$275.00k0.15%
$ 526.4k

7.5yrs

Average Tenure

69.5yo

Average Age

Experienced Board: MBI's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MBI 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

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$348.377m
  • Shares outstanding: 53.93m
  • 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 United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance se...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 00:04
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.