MTG$26.2
$26.26
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Powered by LiveAIOverall Analysis
BuyMGIC Investment Corporation shows strong fundamental performance with solid profitability and a stable balance sheet. While current technical indicators suggest a neutral to slightly bearish short-term outlook, the company benefits from a generally stable housing market (thematic), making it a potentially attractive investment for those seeking income and moderate growth.
Thematic
The company operates within the mortgage insurance sector, which is intrinsically linked to the health of the housing market and interest rate environments. While not a high-growth thematic area, stable housing demand and mortgage refinancing provide consistent opportunities.
Fundamental
MGIC Investment Corporation demonstrates strong profitability with healthy net margins and consistent EPS growth. Its balance sheet is robust, characterized by manageable debt levels and ample cash. The company also provides a consistent dividend yield.
Technical
The stock is currently trading below its longer-term moving averages and shows mixed signals from oscillators. While there are some short-term buy signals from indicators like EMA(10), the overall trend appears to be consolidating or slightly downward, suggesting caution for short-term traders.
| Factor | Score |
|---|---|
| Housing Market Stability | 70 |
| Interest Rate Sensitivity | 60 |
| Regulatory Landscape | 65 |
| Economic Cycle Sensitivity | 60 |
| Factor | Score |
|---|---|
| Valuation | 85 |
| Profitability | 90 |
| Growth | 75 |
| Balance Sheet Health | 80 |
| Cash Flow | 85 |
| Dividend Yield | 70 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 70 |
| Support & Resistance | 60 |
| Short-term Oscillators | 55 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Consistent EPS Surprises
The company has consistently beaten earnings per share (EPS) estimates, with the last quarter showing a surprise of 9.38% (reported $0.75 vs. estimate $0.69). This trend indicates strong operational execution and potentially underestimated future profitability.
Attractive P/E Ratio
The Price-to-Earnings (P/E) ratio of 8.51 (TTM) is relatively low, especially considering the reported net income and revenue figures. This suggests the stock may be undervalued compared to its earnings potential.
Bearish Points (7)
High Quarterly P/E Ratio
The quarterly P/E ratio for Q1 2025 is 31.6 and for Q4 2024 is 30.2. These high ratios, especially when compared to the TTM P/E of 8.5, suggest potential overvaluation based on short-term earnings, possibly driven by temporary factors or high growth expectations.
Slowing Revenue Growth (Quarterly)
While annual revenue for 2024 was $1.207 billion, the quarterly revenue figures show some fluctuation, with Q1 2025 at $306.234 million compared to Q4 2024 at $301.444 million, and Q1 2024 at $294.361 million. While there's year-over-year growth, the pace needs closer examination against industry trends.
Calendar
May 2025
21
Next Dividend Date
July 2025
31
Next Earnings Date
H: $0.74
A: $0.72
L: $0.69
H: 306.69M
A: 306.30M
L: 305.80M
August 2025
7
Ex-Dividend Date
Profile
MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary 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 on the mortgage or sale of the underlying property. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance services. 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.
Seasonals
Price Target
27.00 USD
The 39 analysts offering 1 year price forecasts for MTG have a max estimate of 30.00 and a min estimate of 25.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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