NMI Holdings, Inc. (NMIH) stock analysis

P/E below its 5-year median

NMI's P/E of 7.7 is below its own 5-year median of 8.0.

P/E below the industry

NMI's P/E of 7.7 is below the Insurance Carriers median of 11.2.

P/S above the industry

NMI's price-to-sales of 3.97 is above the Insurance Carriers median of 2.96.

P/B below the industry

NMI's price-to-book of 1.09 is below the Insurance Carriers median of 1.57.

Trading below fair value

The share price of $39.05 is below our fair value estimate of $49.73.

Margin of safety over 20%

The price is 21.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 10.5% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 13.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 3.1% over the last twelve months, against a 5-year average of 17.8% a year.

Growing slower than the industry

Revenue grew 6.9% 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.

Return on equity over 15%

Return on equity was 15.1% over the last twelve months and averaged 17.2% over five years.

Return on assets over 1%

Return on assets was 10.2%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

NMI's return on equity of 15.1% is above the Insurance Carriers median of 14.0%.

Earnings grew over 5 years

Net income grew 17.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 53.1% over the last twelve months, against a 5-year average of 53.9%.

Net margin above the industry

NMI's net margin of 53.1% is above the Insurance Carriers median of 10.6%.

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.

No dividend

NMI has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.