A Business at a Glance
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MGIC INVESTMENT CORP
MTG
$7.0B
Mkt Cap
$29.65
+2.38%
MGIC INVESTMENT CORP (MTG) has a current P/E ratio of 9.4, compared to its historical median P/E of 7.7. The stock is currently considered Fair based on its historical valuation range.
MGIC INVESTMENT CORP (MTG) has a 5-year average return on invested capital (ROIC) of 13.4%. This indicates solid capital allocation.
MGIC INVESTMENT CORP (MTG) has a market capitalization of $6.3B. It is classified as a mid-cap stock.
Yes, MGIC INVESTMENT CORP (MTG) pays a dividend with a trailing twelve-month yield of 2.12%. The company also returns capital through share buybacks, with a buyback yield of 11.96%.
Based on historical P/E analysis, MGIC INVESTMENT CORP (MTG) appears fair. The current P/E of 9.4 is 22% above its historical median of 7.7. The estimated fair value CAGR (P/E method) is 11.6%.
MGIC INVESTMENT CORP (MTG) operates in the Surety Insurance industry, within the Financials sector.
MGIC INVESTMENT CORP (MTG) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
MGIC Investment Corporation is a holding company providing private mortgage insurance (PMI), mortgage credit risk management solutions, and ancillary services through wholly-owned subsidiaries, primarily MGIC. The company earns revenue through insurance premiums on mortgages it insures, with PMI covering losses from homeowner defaults on residential mortgage loans to reduce losses to lenders. MGIC's principal subsidiary is licensed in all 50 U.S. states, the District of Columbia, Puerto Rico, and Guam, and operates in a market where the GSEs (Fannie Mae and Freddie Mac) are the major purchasers of underlying mortgages, making GSE requirements and practices central to industry dynamics. The company's business model is characterized by high persistency of in-force policies, with annual persistency at 85% in 2025, and generates revenue from in-force premium yields on its insurance portfolio while managing credit risk through reinsurance programs and capital allocation. MGIC serves lenders seeking credit enhancement for low down payment mortgages, facilitating access to secondary mortgage market sales and enabling first-time and low- to medium-wealth homebuyers to finance homes with reduced down payments. The company maintains a diversified insurance portfolio across multiple book year vintages and geographic markets, with competitive advantages rooted in digital and analytical capabilities, customer experience differentiation, and financial strength maintained through economic cycles.
【Flat insurance in-force trajectory】 Management expects insurance in force to remain relatively flat in 2026, with the MI market size projected to be similar to 2025 as mortgage rates remain elevated and refinance activity moderates from elevated 2025 levels. Operating expenses are expected to decline to a range of $190–$200 million in 2026, driven primarily by higher expected ceding commissions from renegotiated reinsurance treaties. The company continues to expect the in-force premium yield to remain near 38 basis points in 2026, consistent with 2025 performance, while delinquency rates are anticipated to continue normalizing gradually as the portfolio ages and credit conditions stabilize. Management remains focused on disciplined capital allocation, with share repurchases expected to remain the primary method of returning capital to shareholders while maintaining quarterly dividend payments, supported by capital levels above target thresholds.
| Metric | Target | Period |
|---|---|---|
| Operating expenses | $190 million–$200 million | FY2026 |
| In-force premium yield | Near 38 basis points | FY2026 |
| Insurance in force | Relatively flat | FY2026 |
Operating expenses (FY2026): “For 2026, we expect operating expenses to decline further to a range of $190 million-$200 million, due primarily to higher expected ceding commissions, as we have recently renegotiated several seasonal quota share reinsurance treaties instead of canceling those treaties.”
In-force premium yield (FY2026): “Given expectations of a similar MI market to 2025, we expect the in-force premium yield to remain near 38 basis points again in 2026.”
Insurance in force (FY2026): “Overall, we expect insurance in force to remain relatively flat in 2026.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B |
| Net Income | 718M | 738M | 763M | 713M | 865M | 635M |
| EPS | $3.22 | $3.14 | $2.89 | $2.49 | $2.79 | $1.85 |
| Free Cash Flow | 705M | 852M | 724M | 711M | 647M | 692M |
| ROIC | 0.0% | 14.3% | 14.0% | 12.9% | 15.3% | 10.6% |
| Gross Margin | - | 76.5% | 80.2% | 78.1% | 92.9% | 67.6% |
| Debt/Equity | 0.13 | 0.13 | 0.12 | 0.13 | 0.14 | 0.24 |
| Dividends/Share | $0.63 | $0.56 | $0.49 | $0.43 | $0.36 | $0.27 |
| Operating Income | 0 | 929M | 969M | 902M | 1.1B | 802M |
| Operating Margin | 0.0% | 76.5% | 80.2% | 78.1% | 92.9% | 67.6% |
| ROE | 14.3% | 14.3% | 14.9% | 14.7% | 18.2% | 13.3% |
| Shares Outstanding | 213M | 235M | 264M | 286M | 310M | 343M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 943M | 1.0B | 1.1B | 1.1B | 1.1B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B |
| Gross Margin | 27.0% | 46.8% | 48.4% | 73.6% | 75.1% | 69.9% | 46.6% | 67.6% | 92.9% | 78.1% | 80.2% | 76.5% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 255M | 488M | 515M | 784M | 844M | 848M | 559M | 802M | 1.1B | 902M | 969M | 929M | 0 |
| Op. Margin | 27.0% | 46.8% | 48.4% | 73.6% | 75.1% | 69.9% | 46.6% | 67.6% | 92.9% | 78.1% | 80.2% | 76.5% | 0.0% |
| Net Income | 252M | 1.2B | 343M | 356M | 670M | 674M | 446M | 635M | 865M | 713M | 763M | 738M | 718M |
| Net Margin | 26.7% | 112.6% | 32.2% | 33.4% | 59.6% | 55.5% | 37.2% | 53.6% | 73.8% | 61.7% | 63.2% | 60.8% | 59.6% |
| Non-Recurring | 144K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 16.7% | 40.9% | 9.5% | 9.2% | 16.0% | 14.1% | 8.0% | 10.6% | 15.3% | 12.9% | 14.0% | 14.3% | 0.0% |
| ROE | 28.3% | 71.6% | 14.3% | 12.5% | 19.9% | 17.1% | 9.9% | 13.3% | 18.2% | 14.7% | 14.9% | 14.3% | 14.3% |
| ROA | 4.6% | 21.1% | 5.9% | 6.3% | 11.9% | 11.3% | 6.6% | 8.7% | 12.8% | 11.2% | 11.7% | 11.2% | 11.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -405M | 161M | 225M | 407M | 545M | 610M | 732M | 696M | 650M | 713M | 725M | 853M | 706M |
| Free Cash Flow | -410M | 157M | 214M | 391M | 530M | 604M | 729M | 692M | 647M | 711M | 724M | 852M | 705M |
| Owner Earnings | -412M | 151M | 215M | 394M | 530M | 584M | 712M | 674M | 620M | 677M | 690M | 825M | 632M |
| CapEx | 4.7M | 4.6M | 11M | 16M | 14M | 5.6M | 3.3M | 4.1M | 3.3M | 2.0M | 1.2M | 1.0M | 1.1M |
| Maint. CapEx | 2.2M | 3.2M | 4.6M | 5.4M | 6.0M | 6.5M | 6.3M | 5.6M | 4.9M | 4.6M | 4.2M | 3.3M | 51M |
| Growth CapEx | 2.5M | 1.4M | 6.0M | 11M | 8.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 2.2M | 3.2M | 4.6M | 5.4M | 6.0M | 6.5M | 6.3M | 5.6M | 4.9M | 4.6M | 4.2M | 3.3M | 51M |
| CapEx/OCF | N/A | 2.9% | 4.7% | 4.0% | 2.6% | 0.9% | 0.5% | 0.6% | 0.5% | 0.3% | 0.2% | 0.1% | 0.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 64M | 0 | 0 | 42M | 82M | 94M | 111M | 123M | 131M | 132M | 134M |
| Dividend Yield | N/A | N/A | 2.5% | N/A | N/A | 1.0% | 2.8% | 2.2% | 2.8% | 2.9% | 2.3% | 2.2% | 2.1% |
| Share Buybacks | 0 | 0 | 147M | 0 | 163M | 126M | 120M | 291M | 386M | 337M | 569M | 789M | 756M |
| Buyback Yield | N/A | N/A | 4.2% | N/A | 5.0% | 2.8% | 3.1% | 6.6% | 10.5% | 6.4% | 9.4% | 11.3% | 12.0% |
| Stock-Based Comp | 5.0M | 7.2M | 5.0M | 6.8M | 8.1M | 19M | 14M | 17M | 25M | 32M | 31M | 24M | 23M |
| Debt Repayment | 21M | 62M | 0 | 0 | 0 | 0 | 2.0M | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -3.5B | -3.6B | -3.7B | -4.3B | -4.5B | -5.1B | -5.7B | -5.7B | -5.1B | -5.4B | -5.4B | -5.5B | -5.3B |
| Cash & Equiv. | 198M | 181M | 155M | 100M | 152M | 162M | 288M | 285M | 327M | 364M | 229M | 369M | 5.9B |
| Long-Term Debt | 1.2B | 1.2B | 1.2B | 830M | 832M | 833M | 1.2B | 1.1B | 663M | 643M | N/A | N/A | 647M |
| Debt/Equity | 1.25 | 0.55 | 0.46 | 0.26 | 0.23 | 0.19 | 0.26 | 0.24 | 0.14 | 0.13 | 0.12 | 0.13 | 0.13 |
| Interest Coverage | 3.7 | 7.1 | 9.1 | 13.8 | 15.9 | 16.1 | 9.4 | 11.2 | 22.7 | 24.4 | 27.2 | 26.1 | 26.1 |
| Equity | 1.0B | 2.2B | 2.5B | 3.2B | 3.6B | 4.3B | 4.7B | 4.9B | 4.6B | 5.1B | 5.2B | 5.1B | 5.0B |
| Total Assets | 5.3B | 5.9B | 5.7B | 5.6B | 5.7B | 6.2B | 7.4B | 7.3B | 6.2B | 6.5B | 6.5B | 6.6B | 6.4B |
| Total Liabilities | 4.2B | 3.6B | 3.2B | 2.5B | 2.1B | 1.9B | 2.7B | 2.5B | 1.6B | 1.5B | 1.4B | 1.5B | 1.4B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -852M | 290M | 633M | 977M | 1.6B | 2.3B | 2.6B | 3.3B | 4.0B | 4.6B | 3.4B | 3.3B | 3.2B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 0.64 | 2.60 | 0.86 | 0.95 | 1.78 | 1.85 | 1.29 | 1.85 | 2.79 | 2.49 | 2.89 | 3.14 | 3.22 |
| Owner EPS | -1.05 | 0.33 | 0.54 | 1.05 | 1.41 | 1.60 | 2.06 | 1.96 | 2.00 | 2.36 | 2.61 | 3.51 | 2.97 |
| Book Value | 2.63 | 4.96 | 6.40 | 8.42 | 9.51 | 11.83 | 13.59 | 14.16 | 14.97 | 17.71 | 19.59 | 21.89 | 23.63 |
| Cash Flow/Share | -1.03 | 0.36 | 0.56 | 1.09 | 1.45 | 1.67 | 2.12 | 2.03 | 2.10 | 2.49 | 2.75 | 3.63 | 3.61 |
| Dividends/Share | 0.00 | 0.00 | 0.16 | 0.00 | 0.00 | 0.12 | 0.24 | 0.27 | 0.36 | 0.43 | 0.49 | 0.56 | 0.63 |
| Shares Out. | 393.7M | 450.8M | 398.3M | 374.5M | 376.5M | 364.2M | 345.8M | 343.2M | 310.2M | 286.3M | 264.0M | 235.1M | 213.2M |
| Valuation | |||||||||||||
| P/E Ratio | 12.5 | 3.0 | 10.3 | 13.0 | 4.9 | 6.6 | 8.6 | 7.0 | 4.2 | 7.4 | 8.0 | 9.4 | 9.2 |
| P/FCF | N/A | 22.1 | 16.4 | 11.8 | 6.2 | 7.4 | 5.2 | 6.4 | 5.7 | 7.5 | 8.4 | 8.2 | 9.0 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.5 | N/A | 0.6 | 1.5 | N/A |
| Price/Book | 3.0 | 1.5 | 1.4 | 1.5 | 0.9 | 1.0 | 0.8 | 0.9 | 0.8 | 1.0 | 1.2 | 1.4 | 1.3 |
| Price/Sales | 3.1 | 3.7 | 2.4 | 3.5 | 3.5 | 3.4 | 2.5 | 3.7 | 3.3 | 3.7 | 4.7 | 5.0 | 5.2 |
| FCF Yield | -13.0% | 4.5% | 6.1% | 8.5% | 16.1% | 13.6% | 19.1% | 15.7% | 17.6% | 13.4% | 11.9% | 12.2% | 11.2% |
| Market Cap | 3.2B | 3.5B | 3.5B | 4.6B | 3.3B | 4.4B | 3.8B | 4.4B | 3.7B | 5.3B | 6.1B | 7.0B | 6.3B |
| Avg. Price | 7.34 | 8.53 | 6.51 | 10.03 | 10.52 | 11.38 | 8.61 | 12.68 | 12.65 | 14.78 | 21.65 | 25.89 | 29.65 |
| Year-End Price | 8.00 | 7.68 | 8.84 | 12.34 | 8.76 | 12.22 | 11.04 | 12.88 | 11.86 | 18.54 | 23.06 | 29.62 | 29.65 |
MGIC INVESTMENT CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
MGIC INVESTMENT CORP trades at 9.4x trailing earnings, compared to its 15-year median P/E of 7.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 7.5x vs a median of 7.4x. The company's 5-year average ROIC is 13.4% with a gross margin of 79.1%. Total shareholder yield (dividends + buybacks) is 14.1%. At current prices, the estimated annualized return to fair value is +11.3%.
MGIC INVESTMENT CORP (MTG) has a net profit margin of 60.8%. This is a strong margin indicating high profitability.
MGIC INVESTMENT CORP (MTG) generated $852 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
MGIC INVESTMENT CORP (MTG) has a debt-to-equity ratio of 0.13. This indicates a conservatively financed balance sheet.
MGIC INVESTMENT CORP (MTG) reported earnings per share (EPS) of $3.14 in its most recent fiscal year.
MGIC INVESTMENT CORP (MTG) has a return on equity (ROE) of 14.3%. This indicates moderate shareholder returns.
MGIC INVESTMENT CORP (MTG) has a 5-year average gross margin of 79.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for MGIC INVESTMENT CORP (MTG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
MGIC INVESTMENT CORP (MTG) has a book value per share of $21.89, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects insurance in force to remain relatively flat in 2026, with the MI market size projected to be similar to 2025 as mortgage rates remain elevated and refinance activity moderates from elevated 2025 levels. Operating expenses are expected to decline to a range of $190–$200 million in 2026, driven primarily by higher expected ceding commissions from renegotiated reinsurance treaties. The company continues to expect the in-force premium yield to remain near 38 basis points in 2026, consistent with 2025 performance, while delinquency rates are anticipated to continue normalizing gradually as the portfolio ages and credit conditions stabilize. Management remains focused on disciplined capital allocation, with share repurchases expected to remain the primary method of returning capital to shareholders while maintaining quarterly dividend payments, supported by capital levels above target thresholds.
Based on recent SEC filings and earnings calls, MGIC INVESTMENT CORP (MTG) has provided the following forward guidance: Operating expenses: $190 million–$200 million (FY2026); In-force premium yield: Near 38 basis points (FY2026); Insurance in force: Relatively flat (FY2026).
No recent press releases.