NMI Holdings Inc. Common Stock (NMIH)

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I look for businesses that earn consistently on capital, carry modest leverage, and sell at a sensible price. NMI Holdings is a U.S. private mortgage guaranty insurer, a regulated and capital-intensive specialty niche. The filed numbers show progress: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $187.9 million and net income was $105.8 million, or $1.38 diluted per share. In fiscal Q2 2025, revenue was $173.8 million and net income was $96.2 million, or $1.21 diluted per share. For fiscal year 2025, revenue was $706.4 million, net income $388.9 million, and diluted EPS $4.92; fiscal year 2024 was $651.0 million, $360.1 million, and $4.43. Those are respectable single-digit to low-double-digit gains. At the 2026-10-13 close of $39.56, FairStock calculations show a P/E of 7.79, P/B of 1.10, ROE of 15.43%, and PEG of 0.78. A Piotroski F-Score of 7/9 and D/E of 0.16 suggest a sound balance sheet, and beta of 0.53 implies low market volatility. The computed Peter Lynch category is STALWART, based on 17.8% profit growth a year over five years and 10.3% revenue growth. The main caveat is credit: mortgage insurers are only as good as their underwriting through a housing downturn. CET1, net interest margin, and combined ratio are not in the data, so I cannot fully assess underwriting and capital adequacy. At around book value and less than eight times earnings, the price seems fair to modestly cheap for a stalwart, but this is not a wide-moat, set-and-forget compounder.

In plain English: NMI Holdings sells private mortgage insurance to U.S. lenders, protecting them if borrowers default. The business looks strong: it earns high margins, has grown profits steadily, and carries little debt. At the recent price, the stock looks cheap compared with its earnings and net worth, though mortgage insurance can suffer if home loan defaults rise.

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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