MGIC Investment (MTG) AI Stock Analysis

• Market Cap: $6.51B
• Dividend Yield: 1.91%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.68
• Revenue Growth: 4.64%
• EPS Growth: 15.36%
• Country: US
• Employees: 555
• Sector: Financial
• Sector Strength: 80
• Industry: Insurance - Specialty
• EPS (TTM): 0.75
• Shares Outstanding: 237,437,440
• 10 Day Avg. Volume: 2,272,134
• 30 Day Avg. Volume: 1,976,009
• PEG Ratio: 0.09
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.15
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 1.11
• 1Y Price Target: $28.00
• Price Target Upside: 5.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: ―

MGIC Investment demonstrates strong financial performance with robust revenue growth, high profitability, and no debt, which enhances its financial security. The technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is undervalued, providing investment appeal. The recent earnings call underlined strong performance but noted constraints in insurance growth and economic uncertainties. Overall, the company is well-positioned, but investors should be mindful of market conditions.

Positive Factors

Business Performance

New insurance written significantly exceeded expectations, indicating strong business performance without relying on price cuts.

Capital Return

MGIC has been actively returning capital to shareholders through share repurchases and dividends.

Earnings

MGIC Investment Corp reported a quarterly EPS above expectations, driven by favorable loss reserve development.

Negative Factors

Expenses

The expectation that loss and LAE expenses will increase over time could pressure MTG's earnings.

Interest Rates

Higher interest rates have led to slow insurance in force growth, which is expected to continue, putting pressure on MTG's earnings potential.

Revenue

Total revenues slightly missed forecasts, with both insurance in-force and investment income coming in below expectations.

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 Investment Corporation makes money primarily through the premiums it charges for its mortgage insurance products. These premiums are paid by lenders or borrowers to insure the portion of the mortgage loan that exceeds a certain loan-to-value ratio, typically 80%. This insurance protects lenders against losses if a borrower defaults on their mortgage payments. The company's revenue model is heavily reliant on the volume of new policies written and the persistency of existing policies. MGIC also invests its capital reserves in various securities, generating additional income through investment returns. Key factors contributing to MGIC's earnings include housing market conditions, interest rate fluctuations, and regulatory changes affecting the mortgage industry.

MGIC Investment Financial Statement Overview

Summary

MGIC Investment shows strong financial health with robust revenue growth, high profitability margins, and no debt, which enhances financial security. The cash flow metrics indicate strong cash generation capabilities. However, the absence of EBIT and EBITDA metrics limits the assessment of operating 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	1.12B	1.21B	929.10M	936.09M	987.23M	1.02B
EBITDA	734.81M	1.00B	974.36M	1.19B	939.15M	676.67M
Net Income	774.36M	762.99M	712.95M	865.35M	634.98M	446.09M
Balance Sheet
Total Assets	6.54B	6.55B	6.54B	6.21B	7.33B	7.35B
Cash, Cash Equivalents and Short-Term Investments	6.09B	149.94M	363.67M	327.38M	284.69M	287.95M
Total Debt	0.00	644.67M	643.20M	662.81M	1.15B	1.24B
Total Liabilities	1.40B	1.36B	1.47B	1.57B	1.15B	1.24B
Stockholders Equity	5.14B	5.17B	5.07B	4.64B	4.86B	4.70B
Cash Flow
Free Cash Flow	756.85M	723.86M	710.96M	646.76M	692.20M	729.00M
Operating Cash Flow	758.15M	725.03M	712.96M	650.01M	696.32M	732.31M
Investing Cash Flow	-135.60M	-142.00M	-179.19M	410.49M	-160.75M	-772.51M
Financing Cash Flow	-849.42M	-719.04M	-496.04M	-1.03B	-527.29M	167.82M

MGIC Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 26.58 is below the 20-day moving average (MA) of 27.31, above the 50-day MA of 26.57, and above the 200-day MA of 24.90, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 2.97 is Positive, 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	84 Outperform	$5.58B	8.36	14.09%	2.26%	4.33%	10.21%
MTG	79 Outperform	$6.51B	9.12	15.12%	1.91%	4.64%	15.36%
ESNT	79 Outperform	$6.04B	8.72	13.29%	2.08%	9.87%	3.41%
NMIH	79 Outperform	$3.20B	8.64	17.38%	―	11.61%	14.35%
RDN	78 Outperform	$4.79B	9.07	13.22%	2.86%	2.95%	4.08%
FAF	68 Neutral	$6.44B	41.28	3.23%	3.60%	0.96%	-27.04%
Sector *	61 Neutral	C$14.63B	6.11	22.26%	5.61%	27.38%	-22.40%

MGIC Investment Corporate Events

MGIC Investment Announces CIO Departure and Severance

On June 11, 2025, Robert J. Candelmo, the Senior Vice President and Chief Information Officer, was separated from service with Mortgage Guaranty Insurance Corporation. His departure will include severance benefits as per the company’s Executive Severance Plan, indicating a potential shift in the company’s executive structure.

The most recent analyst rating on (MTG) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on MGIC Investment stock, see the MTG Stock Forecast page.