MGIC Investment Corporation Common Stock (MTG)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits, carry modest debt, and sell at a sensible price. MGIC fits parts of that mold. It provides private mortgage insurance, a business with regulatory and capital barriers and deep lender relationships—a narrow moat, though it remains cyclical and exposed to housing credit. At the 2026-10-13 close of $27.12, FairStock calculates a P/E of 8.48, a P/B of 1.12, an ROE of 13.92%, ROCE of 8.80%, and a Piotroski score of 6/9. Debt/equity is only 0.13, so leverage is not the main worry. Earnings have been solid: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $295.4M, net income $182.1M, and diluted EPS $0.86. But that compares with fiscal Q2 2025, when revenue was $304.2M, net income $192.5M, and diluted EPS $0.81; the top line and net income slipped, while EPS rose because fewer shares were outstanding. Full-year figures show EPS of $3.14 in FY2025, $2.89 in FY2024, and $2.49 in FY2023—good consistency—but revenue was about $1.2B each year, so growth is modest. FairStock labels it a STALWART: profit grew 10.6% a year over five years while revenue grew only 0.2%. The dividend yield is 2.29% and beta is 0.65. The valuation looks reasonable, even cheap, but mortgage insurers live and die by credit losses. CET1, NIM, and combined ratio are not in the data, so I cannot fully judge underwriting reserves or capital adequacy. I would want more evidence on defaults and reserves before calling it a bargain.

In plain English: MGIC sells private mortgage insurance, which pays lenders when homeowners default. The company earns good profits and uses little debt, but its latest quarterly sales and profit were slightly lower than a year earlier. At the recent price, the shares look inexpensive relative to the company's earnings and net assets, though housing and mortgage-default risk remain the big unknowns.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer