MBIA (MBI) AI Stock Analysis

• Market Cap: $233.72M
• Dividend Yield: N/A
• Average Volume (3M): 327.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 583.33%
• EPS Growth: 6.59%
• Country: US
• Employees: 57
• Sector: Financial
• Sector Strength: 88
• Industry: Insurance - Specialty
• EPS (TTM): -0.16
• Shares Outstanding: 50,370,625
• 10 Day Avg. Volume: 234,471
• 30 Day Avg. Volume: 327,165
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 15.97
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 88.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.50
• Price Target Upside: 51.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

The overall stock score for MBIA is low at 28, reflecting serious financial instability, poor technical indicators, and unattractive valuation metrics. While there are some improvements in loss reduction, significant risks remain, such as high liabilities and unresolved debt issues, which overshadow any positive developments.

MBIA Business Overview & Revenue Model

Company Description

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 segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions and territories, as well as utilities, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, utilities, and privately issued bonds used for the financing of projects that include toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.

How the Company Makes Money

MBIA makes money primarily through premiums earned from its financial guarantee insurance products. The company collects premiums from clients in exchange for providing insurance that guarantees the timely payment of principal and interest on bonds and other securities. This insurance is particularly valuable to issuers of municipal bonds, as it enhances the credit quality of the bonds, potentially lowering borrowing costs for issuers and providing security for investors. Additionally, MBIA may earn investment income from its portfolio of invested assets, which includes the premiums collected and other funds. The company's revenue is also influenced by the overall health of the financial markets, interest rates, and the creditworthiness of its insured entities.

MBIA Financial Statement Overview

Summary

MBIA's financial statements indicate severe financial instability. Persistent losses, negative cash flows, and an unsustainable balance sheet highlight significant financial challenges. The company needs to address its debt and improve operational efficiency to stabilize its financial health.

Income Statement

The income statement shows a negative trajectory with declining revenue over recent years. The company has consistently negative EBIT and net income, reflecting poor profitability. The gross profit margin is misleadingly high due to negligible costs, but the net profit margin is deep in the negative, indicating significant losses.

Balance Sheet

The balance sheet is concerning, with negative stockholders' equity suggesting insolvency risk. The debt-to-equity ratio is negative due to negative equity, indicating an unsustainable capital structure. The equity ratio is also negative, highlighting that liabilities exceed assets significantly.

Cash Flow

Cash flow statements reflect operational struggles, with negative operating cash flow and free cash flow over several years. Although there was a slight improvement in operating cash flow from 2023 to 2024, it remains negative, indicating ongoing cash flow challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
42.00M	6.00M	150.00M	159.00M	282.00M
	Gross Profit
42.00M	6.00M	74.00M	62.00M	190.00M
	EBIT
-441.00M	-92.00M	-22.00M	-445.00M	-578.00M
	EBITDA
-441.00M	0.00	32.00M	0.00	0.00
	Net Income Common Stockholders
-444.00M	-491.00M	-149.00M	-445.00M	-578.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01B	107.00M	2.23B	2.69B	2.71B
	Total Assets
2.17B	2.61B	3.38B	4.70B	5.75B
	Total Debt
2.74B	3.16B	3.10B	3.21B	3.56B
	Net Debt
2.66B	3.06B	3.04B	3.05B	3.40B
	Total Liabilities
4.24B	4.25B	4.25B	3.21B	3.56B
	Stockholders Equity
-2.09B	-1.66B	-882.00M	-313.00M	136.00M
Cash Flow		Free Cash Flow
-176.00M	-195.00M	-418.00M	510.00M	-390.00M
	Operating Cash Flow
-176.00M	-195.00M	-418.00M	511.00M	-390.00M
	Investing Cash Flow
287.00M	767.00M	623.00M	-61.00M	1.74B
	Financing Cash Flow
-132.00M	-542.00M	-285.00M	-457.00M	-1.26B

MBIA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBI, the sentiment is Negative. The current price of 4.3 is below the 20-day moving average (MA) of 4.51, below the 50-day MA of 4.86, and below the 200-day MA of 5.05, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MBI.

MBIA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	84 Outperform	$5.44B	8.22	14.09%	2.05%	4.33%	10.21%
MTG	79 Outperform	$6.18B	8.66	15.12%	1.93%	4.64%	15.36%
RDN	78 Outperform	$4.51B	8.62	13.22%	2.95%	2.95%	4.08%
AGO	66 Neutral	$4.45B	12.81	7.90%	1.45%	-4.43%	-45.42%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%
AMBC	60 Neutral	$414.35M	5.59	2.04%	―	46.32%	640.18%
MBI	28 Underperform	$233.72M	―	26.69%	―	583.33%	6.59%

MBIA Corporate Events

MBIA to Update Financial Statements for Q4 2024

MBIA announced that on February 27, 2025, it will update its website with the Quarterly Operating Supplement and Quarterly and Annual Statements for the fourth quarter of 2024. These updates will include detailed information about MBIA Insurance Corporation and National Public Finance Guarantee Corporation. Additionally, MBIA will provide insights into its insured portfolios as of December 31, 2024, with further updates to its Frequently Asked Questions section expected on or around February 28, 2025.

MBIA Approves $10M Retention Awards for Executives

On February 11, 2025, MBIA Inc.’s Board of Directors approved special cash retention awards totaling $10,175,000 for four executive officers under its Omnibus Incentive Plan. These awards aim to retain the executives crucial for managing the company’s runoff portfolios and ensuring shareholder value through 2028. The vesting of these awards is contingent upon continued employment until 2028, with conditions for early vesting in case of a qualifying termination.