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MGIC Investment Corp (MTG) stock analysis

MTGNYSESurety InsuranceFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 4, 2026Score 9/3011% below fair value
$27.87−0.30 (-1.06%)

Close on Nov 11, 2026Market cap $5.72BP/E 8.7Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value3Growth0Performance3Health0Dividend3

Mixed9 of 30 checks passed

MGIC Investment passes 9 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
0/6
Past performance
3/6
Financial health
0/6
Dividend
3/6

What stands out

  • Trading below fair value

    The share price of $27.87 is below our fair value estimate of $31.46.

  • Earnings grew over 5 years

    Net income grew 10.6% a year on average over the last five fiscal years.

  • P/E below the industry

    MGIC Investment's P/E of 8.7 is below the Insurance Carriers median of 11.2.

  • Covered by free cash flow

    Dividends take 19.1% of free cash flow.

What to watch

  • Margin of safety under 20%

    The price is 11.4% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was 13.8% over the last twelve months and averaged 15.1% over five years; we look for 15% on both.

  • Revenue growing under 10% a year

    Revenue grew 1.1% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew 4.0% a year over the last three fiscal years.

Valuation3/6

  • P/E above its 5-year median

    MGIC Investment's P/E of 8.7 is above its own 5-year median of 8.2.

  • P/E below the industry

    MGIC Investment's P/E of 8.7 is below the Insurance Carriers median of 11.2.

  • P/S above the industry

    MGIC Investment's price-to-sales of 4.80 is above the Insurance Carriers median of 2.96.

  • P/B below the industry

    MGIC Investment's price-to-book of 1.18 is below the Insurance Carriers median of 1.57.

  • Trading below fair value

    The share price of $27.87 is below our fair value estimate of $31.46.

  • Margin of safety under 20%

    The price is 11.4% below fair value, less than the 20% cushion we look for.

Growth0/6

  • Revenue growing under 10% a year

    Revenue grew 1.1% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew 4.0% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew -8.2% over the last twelve months, against a 5-year average of 10.6% a year.

  • Growing slower than the industry

    Revenue grew -2.2% over the last twelve months; the Insurance Carriers median is 11.1%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin trend

    Banks and insurers do not report gross profit.

Past performance3/6

  • Return on equity under 15%

    Return on equity was 13.8% over the last twelve months and averaged 15.1% over five years; we look for 15% on both.

  • Return on assets over 1%

    Return on assets was 10.6%; for a bank or insurer, 1% or more is considered good.

  • Return on equity below the industry

    MGIC Investment's return on equity of 13.8% is below the Insurance Carriers median of 14.0%.

  • Earnings grew over 5 years

    Net income grew 10.6% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was 58.1% over the last twelve months, against a 5-year average of 62.6%.

  • Net margin above the industry

    MGIC Investment's net margin of 58.1% is above the Insurance Carriers median of 10.6%.

Financial health0/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt coverage

    Needs operating cash flow.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term liquidity

    Insurers do not split assets into current and non-current.

  • Bankruptcy risk (Altman Z)

    The Altman model does not apply to insurers.

Dividend3/6

  • Pays a dividend

    MGIC Investment paid dividends worth 1.7% of the share price over the last twelve months.

  • Yield below Treasuries

    The 1.7% yield is below the 4.4% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 3.8% or more; MGIC Investment yields 1.7%.

  • Dividend stability

    Fewer than five years of dividend history.

  • Covered by earnings

    Dividends take 19.5% of net income.

  • Covered by free cash flow

    Dividends take 19.1% of free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$31.46

The share price is 11% below this estimate.

20%+ below
Near fair value
20%+ above
$27.87Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E9.7×8.2×11.2×$31.3050%
P/B1.3×1.1×1.6×$31.6350%
Fair value$31.46100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 8.2
  • Insurance Carriers median 11.2

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$69.66M
Value traded per 1% price move
$54.96M

Downside

Low risk

Typical loss in a bad month
12.8%
Volatility (annualized)
25%
Sharpe ratio, 1 year
-0.23
Beta to the S&P 500 (5Y)
0.70

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

60.8%+23.6 pts over 5 years

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