MGIC Investment Corporation

Valuation Analysis

About the Company

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 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. The company

MGIC Investment Corporation Stock at a Glance

MGIC Investment Corporation (MTG) is currently trading at $25.81 with a market capitalization of $5.5B. The trailing P/E ratio stands at 8.19x, with a forward P/E of 7.81x. The 52-week range spans from $24.69 to $29.97; the current price is 13.9% below the yearly high. Year-over-year revenue growth stands at -3.0%. The net profit margin stands at 59.63%.

💰 Dividend

MGIC Investment Corporation pays an annual dividend of $0.60 per share, representing a yield of 2.32%. The payout ratio stands at 18.41%.

📊 Analyst Rating

6 analysts rate MGIC Investment Corporation (MTG) on consensus: Hold. The average price target is $28.67, implying +11.07% from the current price. Analyst price targets range from $28.00 to $30.00.

MGIC Investment Corporation: The Investment Case in Detail

MGIC Investment Corporation (MTG) operates in the Financial Services — specifically Insurance - Specialty — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 93.3%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 59.63%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -3% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valuation in Context

With a PEG ratio of 0.4, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 6.23x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (5.39%).

Trading Data

💵 Dividend Info

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