MGIC INVESTMENT CORP (MTG) Stock Fundamental Analysis
NYSE:MTG - New York Stock Exchange, Inc. - US5528481030 - Common Stock - Currency: USD
MTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. Both the profitability and the financial health of MTG get a neutral evaluation. Nothing too spectacular is happening here. MTG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MTG was profitable.
In the past year MTG had a positive cash flow from operations.
Each year in the past 5 years MTG has been profitable.
MTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.42%, MTG belongs to the top of the industry, outperforming 93.07% of the companies in the same industry.
MTG has a better Return On Equity (14.41%) than 68.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.42% | ||
| ROE | 14.41% | ||
| ROIC | N/A |
ROA(3y)12.16%
ROA(5y)10.24%
ROE(3y)15.82%
ROE(5y)14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 64.09%, MTG belongs to the best of the industry, outperforming 97.03% of the companies in the same industry.
MTG's Profit Margin has improved in the last couple of years.
MTG has a Operating Margin of 83.97%. This is amongst the best in the industry. MTG outperforms 98.02% of its industry peers.
In the last couple of years the Operating Margin of MTG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 83.97% | ||
| PM (TTM) | 64.09% | ||
| GM | N/A |
OM growth 3Y2.71%
OM growth 5Y2.31%
PM growth 3Y5.66%
PM growth 5Y2.62%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MTG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MTG has less shares outstanding
The number of shares outstanding for MTG has been reduced compared to 5 years ago.
Compared to 1 year ago, MTG has about the same debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of MTG is 0.89, which is an excellent value as it means it would take MTG, only 0.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MTG (0.89) is better than 84.16% of its industry peers.
MTG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
MTG's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. MTG outperforms 75.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.86%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.02% over the past year.
MTG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.48% yearly.
The Revenue has been growing slightly by 4.55% in the past year.
Measured over the past years, MTG shows a decrease in Revenue. The Revenue has been decreasing by -0.10% on average per year.
EPS 1Y (TTM)15.02%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%7.46%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%6.16%
3.2 Future
The Earnings Per Share is expected to grow by 4.66% on average over the next years.
MTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.90% yearly.
EPS Next Y-1.91%
EPS Next 2Y1.51%
EPS Next 3Y4.66%
EPS Next 5YN/A
Revenue Next Year2.61%
Revenue Next 2Y2.82%
Revenue Next 3Y1.9%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.24, which indicates a very decent valuation of MTG.
Compared to the rest of the industry, the Price/Earnings ratio of MTG indicates a somewhat cheap valuation: MTG is cheaper than 78.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MTG to the average of the S&P500 Index (29.63), we can say MTG is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.40, the valuation of MTG can be described as very reasonable.
MTG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTG is cheaper than 66.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
89.11% of the companies in the same industry are more expensive than MTG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTG indicates a rather cheap valuation: MTG is cheaper than 82.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.18 | ||
| EV/EBITDA | 6.3 |
4.3 Compensation for Growth
The decent profitability rating of MTG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y1.51%
EPS Next 3Y4.66%
5. Dividend
5.1 Amount
MTG has a Yearly Dividend Yield of 2.12%.
MTG's Dividend Yield is a higher than the industry average which is at 3.84.
Compared to an average S&P500 Dividend Yield of 2.29, MTG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
MTG has paid a dividend for at least 10 years, which is a reliable track record.
MTG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
MTG pays out 16.96% of its income as dividend. This is a sustainable payout ratio.
DP16.96%
EPS Next 2Y1.51%
EPS Next 3Y4.66%
23.97
-0.45 (-1.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.63%
Inst Owner Change0.06%
Ins Owners1.38%
Ins Owner Change3.36%
Market Cap5.96B
Analysts51.43
Price Target26.81 (11.85%)
Short Float %4.01%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend0.43
Dividend Growth(5Y)N/A
DP16.96%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.36%
Min EPS beat(2)14.77%
Max EPS beat(2)19.95%
EPS beat(4)4
Avg EPS beat(4)14.62%
Min EPS beat(4)6.47%
Max EPS beat(4)19.95%
EPS beat(8)8
Avg EPS beat(8)15.75%
EPS beat(12)12
Avg EPS beat(12)25.86%
EPS beat(16)16
Avg EPS beat(16)20.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.94%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)2
Avg Revenue beat(16)-1.53%
PT rev (1m)0.82%
PT rev (3m)-1.34%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)2.03%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 8.4 | ||
| P/S | 5 | ||
| P/FCF | 8.18 | ||
| P/OCF | 8.17 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)2.91
EY12.14%
EPS(NY)2.85
Fwd EY11.91%
FCF(TTM)2.93
FCFY12.22%
OCF(TTM)2.93
OCFY12.24%
SpS4.79
BVpS21.31
TBVpS21.31
PEG (NY)N/A
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.42% | ||
| ROE | 14.41% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 83.97% | ||
| PM (TTM) | 64.09% | ||
| GM | N/A | ||
| FCFM | 61.14% |
ROA(3y)12.16%
ROA(5y)10.24%
ROE(3y)15.82%
ROE(5y)14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.71%
OM growth 5Y2.31%
PM growth 3Y5.66%
PM growth 5Y2.62%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 5.62% | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.46% | ||
| Profit Quality | 95.41% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC14.86%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.02%
EPS 3Y14.47%
EPS 5Y9.48%
EPS Q2Q%7.46%
EPS Next Y-1.91%
EPS Next 2Y1.51%
EPS Next 3Y4.66%
EPS Next 5YN/A
Revenue 1Y (TTM)4.55%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.1%
Sales Q2Q%6.16%
Revenue Next Year2.61%
Revenue Next 2Y2.82%
Revenue Next 3Y1.9%
Revenue Next 5YN/A
EBIT growth 1Y5.16%
EBIT growth 3Y3.34%
EBIT growth 5Y2.2%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.2%
OCF growth 3YN/A
OCF growth 5YN/A