MGIC Investment MTG
United StatesFinancial Services · Insurance - SpecialtyUSD
31.40 USD (+16.0%)
5 analysts
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MGIC Investment Corporation is a US mortgage insurer that protects lenders against borrower default, earning premiums on its private mortgage insurance (PMI) policies.
Key points
from its scores- ✓High-quality business9.8
- ✓Attractive valuation7.7
- ✓Good share-price trend7.6
- ✕Weak growth4.4
- !Modest dividend5.9
AI analysis
bottom line, main risk, context and newsValuation is reasonable and the moat is wide, but negative revenue growth and sensitivity to the mortgage cycle warrant selectivity.
MGIC shows solid financial health (ROE 13.92%, ROA 8.80%) and a very wide moat (operating margin 80.85%), with an attractive valuation (P/E 8.46, P/B adjusted 0.80). Revenue growth is negative (-2.90%), but earnings growth remains positive (6.20%), and the dividend is sustainable with an 18.75% payout. The main risk is exposure to the US credit and housing cycle.
The biggest risk is a US recession that raises claims on its mortgage insurance portfolio, especially if the current tightening of financial conditions (rates at 5.28%) contracts the housing market and drives up defaults.
Context and risks
MGIC is a US mortgage insurer, a highly cyclical business sensitive to the credit cycle. The main risk is a recession that raises claims on its policy portfolio, which could materialize if the tightening of financial conditions (10Y at 5.28%) ends up contracting the housing market and increasing defaults. Additionally, the sector is under active regulatory review (PMIERs), adding risk of changes to capital requirements.
Is MGIC Investment stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 39% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 8.5 | 13.7 | −38% |
| EV / EBITDA | 6.5 | 10.1 | −36% |
| Price / book | 1.1 | 1.9 | −40% |
| Price / sales | 4.6 | 3.5 | +35% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.7 out of 10 (median for Financial Services: 5.2).
Average analyst target: 31.40 USD, +16.0% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.4 (sector 5.5), Growth 4.4 (sector 6.9).
Classic formulas with standard assumptions (8.9% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 8.5
- Forward P/E
- 7.8
- EV / EBITDA
- 6.5
- Price / book
- 1.1
- Price / sales
- 4.6
- PEG
- 0.40
- Market cap
- 5.6B USD
- Enterprise value
- 6.0B USD
Profitability
- ROE
- 13.9%
- ROA
- 8.8%
- ROIC (approx.)
- 17.2%
- Gross margin
- 92.6%
- Operating margin
- 80.9%
- Net margin
- 59.2%
- Free cash flow
- 518.9M USD
- FCF yield
- 9.3%
- Cash conversion
- 56%
Solvency
- Total debt
- 646.9M USD
- Net debt
- 439.6M USD
- Cash
- 207.3M USD
- EBITDA
- 923.7M USD
- Net debt / EBITDA
- 0.48
- Debt / equity
- 12.90
- Current ratio
- 4.96
- Quick ratio
- 3.24
Growth
- Revenue growth
- −2.9%
- Earnings growth
- +6.2%
- EPS (TTM)
- 3.20 USD
- EPS (forward)
- 3.48 USD
Dividend
- Dividend yield
- 2.5%
- Payout
- 18.8%
Risk and market
- Beta
- 0.67
- Analyst consensus
- Hold (5)
- Target price
- 31.40 USD
- 52-week range
- 24.69 – 31.89
Recent news
All MTG news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about MGIC Investment
Is MGIC Investment stock cheap or expensive?
On P/E and Price / book, it trades 39% below the Financial Services median on average. Valuation score: 7.7 out of 10 (median for Financial Services: 5.2). Average analyst target: 31.40 USD, +16.0% versus the price. This is not investment advice.
What score does MGIC Investment get on MeridIAn Screener?
It scores 7.4 out of 10, rank 67 of 2,130 (better than 97% of the companies analysed). Its strongest category is Quality / Moat (9.8) and its weakest, Growth (4.4). Analysis of 08/10/2026.
What is MGIC Investment's P/E ratio?
Its P/E is 8.5: the share price equals 8.5 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 7.8.
How much is MGIC Investment worth on the stock market?
Its market capitalisation is 5.6B USD.
Does MGIC Investment pay a dividend?
Yes: its dividend yield is 2.51% and it pays out 19% of its earnings.
How has MGIC Investment stock performed over the last year?
It has risen 3.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 24.69 and 31.89 USD. Past performance does not guarantee future results.
What do analysts think of MGIC Investment?
5 analysts cover it; their average recommendation is “Hold” and their average target is 31.40 USD (+16.0% versus the price). It is an estimate, not market data.