MGIC Investment (MTG) AI Stock Analysis

• Market Cap: $6.13B
• Dividend Yield: 1.97%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.67
• Revenue Growth: 2.20%
• EPS Growth: 9.90%
• Country: US
• Employees: 555
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.83
• Shares Outstanding: 223,740,980
• 10 Day Avg. Volume: 1,998,703
• 30 Day Avg. Volume: 1,865,898
• PEG Ratio: 0.51
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 5.14
• P/FCF Ratio: 8.57
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 5.92
• Enterprise Value/Gross Profit: 6.29
• Enterprise Value/Ebitda: 9.34
• 1Y Price Target: $29.00
• Price Target Upside: 5.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $31.00 ▲(13.06% Upside)

MGIC Investment's strong financial performance and positive earnings call are the most significant factors contributing to its high score. The company's robust balance sheet, high profitability, and effective capital returns highlight its financial strength. However, technical indicators suggest a neutral trend, and potential challenges such as increased competition and higher operating expenses could impact future performance.

Positive Factors

Strong Financial Health

MGIC's debt-free status and high equity ratio indicate financial stability and low risk, supporting long-term operational resilience and growth potential.

Effective Capital Management

Strong capital management through share repurchases and dividends enhances shareholder value and reflects confidence in future cash flow generation.

High Persistency and Insurance in Force

High persistency rates and stable insurance in force demonstrate MGIC's ability to maintain customer relationships and revenue streams over time.

Negative Factors

Challenges in Housing Market

The slowdown in home sales due to high interest rates could restrict MGIC's growth in new insurance policies, impacting long-term revenue potential.

Flat Investment Income

Flat investment income limits MGIC's ability to leverage its reserves for additional revenue, potentially affecting profitability and cash flow.

Potential Increase in Delinquency Rates

Rising delinquency rates could increase claims and reduce profitability, posing a risk to MGIC's financial stability and insurance portfolio quality.

MGIC Investment Business Overview & Revenue Model

Company Description

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

MGIC generates revenue primarily through the sale of mortgage insurance premiums. When a lender issues a mortgage that exceeds a certain loan-to-value ratio, they may require the borrower to obtain mortgage insurance to mitigate the risk of default. MGIC charges these lenders premiums for coverage, which can be collected as a one-time upfront payment or as monthly installments throughout the life of the loan. Additionally, MGIC earns income through investment returns on its reserves and capital, which are allocated to cover potential future claims. The company may also engage in reinsurance arrangements or partnerships with other financial institutions to share risk and enhance its offerings. The stability of MGIC's revenue model is significantly influenced by housing market conditions, interest rates, and regulatory changes affecting the mortgage industry.

MGIC Investment Financial Statement Overview

Summary

MGIC Investment exhibits strong financial health with consistent revenue growth and high profitability. The balance sheet reflects excellent stability with no debt as of 2024, enhancing financial security. Cash flow metrics indicate robust cash generation capabilities. However, the lack of EBIT and EBITDA metrics for the latest period slightly limits the evaluation of operational efficiency.

Income Statement

MGIC Investment showed robust revenue growth, increasing from $1,155.1 million in 2023 to $1,207.7 million in 2024. The company achieved a high net profit margin of 63.17% in 2024, indicating strong profitability. However, the absence of EBIT and EBITDA figures for 2024 limits the assessment of operating efficiency.

Balance Sheet

The company's financial position is strong with a debt-free status as of 2024 and a high equity ratio of 88.34%, showing high stability and low financial risk. The return on equity in 2024 was 14.75%, which indicates effective use of equity to generate profits.

Cash Flow

MGIC Investment reported a healthy free cash flow growth from $710.9 million in 2023 to $723.9 million in 2024, indicating strong cash generation. The operating cash flow to net income ratio was 0.95, demonstrating efficient conversion of income to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.21B	1.16B	1.17B	1.19B	1.20B
Gross Profit	1.15B	1.21B	929.10M	936.09M	987.23M	1.02B
EBITDA	771.80M	1.02B	974.36M	1.19B	939.15M	676.67M
Net Income	762.61M	762.99M	712.95M	865.35M	634.98M	446.09M
Balance Sheet
Total Assets	6.49B	6.55B	6.54B	6.21B	7.33B	7.35B
Cash, Cash Equivalents and Short-Term Investments	298.89M	6.08B	363.67M	327.38M	284.69M	287.95M
Total Debt	645.40M	644.67M	643.20M	662.81M	1.15B	1.24B
Total Liabilities	1.33B	1.36B	1.47B	1.57B	1.15B	1.24B
Stockholders Equity	5.15B	5.17B	5.07B	4.64B	4.86B	4.70B
Cash Flow
Free Cash Flow	770.86M	723.86M	710.96M	646.76M	692.20M	729.00M
Operating Cash Flow	771.90M	725.03M	712.96M	650.01M	696.32M	732.31M
Investing Cash Flow	119.19M	-142.00M	-179.19M	410.49M	-160.75M	-772.51M
Financing Cash Flow	-880.01M	-719.04M	-496.04M	-1.03B	-527.29M	167.82M

MGIC Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTG, the sentiment is Positive. The current price of 27.42 is above the 20-day moving average (MA) of 27.09, below the 50-day MA of 27.75, and above the 200-day MA of 25.87, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 59.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTG.

MGIC Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	―	$5.27B	8.12	13.47%	2.21%	3.15%	5.70%
MTG	―	$6.13B	8.82	14.40%	1.97%	2.20%	9.90%
RDN	―	$4.60B	8.55	13.07%	2.98%	0.24%	3.14%
NMIH	―	$2.83B	7.73	16.91%	―	9.99%	11.47%
ESNT	―	$5.97B	8.83	12.94%	2.00%	4.79%	-0.76%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	―	$6.37B	13.43	9.28%	3.47%	25.99%	426.44%

MGIC Investment Corporate Events

MGIC Investment Corp: Steady Q3 2025 Performance

MGIC Investment Corporation is a holding company primarily engaged in providing private mortgage insurance through its subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), to lenders and government-sponsored entities in the United States. The company operates within the financial services sector, focusing on protecting lenders from losses due to borrower defaults on low down payment residential mortgage loans.

MGIC Investment Appoints New Board Members

On October 22, 2025, MGIC Investment Corporation’s Board of Directors elected Martin P. Klein and Daniela A. O’Leary-Gill as new members. Mr. Klein, with extensive experience in financial roles at Athene Holdings LTD and Genworth Financial, joins the Risk Management and Securities Investment Committees. Ms. O’Leary-Gill, who has held senior roles at BMO Financial Group and Discover Financial Services, joins the Audit and Business Transformation & Technology Committees. On October 31, 2025, both will receive restricted stock units valued at $36,302.00 under the MGIC Investment Corporation Deferred Compensation Plan for Non-Employee Directors, reflecting a pro-rated annual grant for non-management directors.

The most recent analyst rating on (MTG) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on MGIC Investment stock, see the MTG Stock Forecast page.

MGIC Investment Corp Reports Stable Q2 2025 Earnings

MGIC Investment Corporation is a holding company primarily engaged in the mortgage insurance business through its subsidiary, Mortgage Guaranty Insurance Corporation (MGIC). The company provides mortgage insurance to lenders and government-sponsored entities in the United States to protect against losses from defaults on low down payment residential mortgage loans. MGIC operates in the financial services sector and is known for its involvement in credit risk transfer programs with Fannie Mae and Freddie Mac.

MGIC Investment Corp’s Earnings Call Highlights Resilience Amid Challenges

MGIC Investment Corp’s recent earnings call revealed a mixed sentiment, highlighting the company’s strong financial performance and shareholder returns, but also acknowledging challenges in the housing market and limited growth in insurance in force. Despite these hurdles, MGIC’s robust capital management and favorable loss reserve development demonstrate the company’s resilience.