Recent News
On October 23, 2025 MGIC’s board approved a quarterly cash dividend of $0.15 per share and named Martin P. Klein and Daniela A. O’Leary‑Gill to its board of directors. On October 27, 2025 the company announced it became the first mortgage insurer to directly manage updates in ICE Mortgage Technology’s Encompass Partner Connect platform, enabling faster product and integration updates for lender customers.
Technical Analysis
Directional indicators show competing forces: DI+ experienced a dip-and-reversal, indicating resurgent bullish pressure, while DI− has been increasing, signaling rising bearish pressure; ADX at 21.34 signals an emerging trend rather than an established one, so directional commitments remain tentative.
MACD registered a dip-and-reversal and therefore displays increasing momentum, but the MACD value (0.77) sits below the signal line (0.86), so bullish momentum has not yet confirmed via a signal-line crossover.
MRO stands at 35.14 (positive), which implies the market price sits above the model target and therefore carries technical downside potential; that technical over-extension reinforces the valuation concern noted below.
RSI at 60.62 after a dip-and-reversal indicates improving momentum without an overbought condition; that supports short-term upside but leaves room for a pullback if momentum stalls.
Price trades above short-, medium- and long-term averages (price close $27.14 vs 12‑day EMA $26.41 increasing, 20‑day avg $26.42, 50‑day avg $24.01 and 200‑day avg $19.09), and the close sits near the upper Bollinger band, which often precedes consolidation when combined with a positive MRO.
Volume at 34,315 slightly exceeds the 10‑day average but remains below the 200‑day average, indicating limited follow‑through liquidity for large directional moves; short‑term volatility metrics remain muted (42‑day volatility 3%).
Fundamental Analysis
Revenue totaled $161,656,000 with YoY revenue growth of 33.93% and QoQ growth of 125.93%, showing strong top‑line momentum. Net income stands at $9,863,000 and operating income (EBIT) $17,115,000, producing an EBIT margin of 10.59%, up 2.63% QoQ and 0.43% YoY.
Margins remain low versus peers: EBIT margin at 10.59% sits below the industry peer mean of 49.84% and below the industry peer median of 65.08%, indicating the company operates with markedly slimmer operating profitability than the peer set despite revenue growth.
Earnings per share came in at $0.25 versus an estimate of $0.27, an EPS surprise of −7.41%. Forward EPS equals $0.282 and forward P/E near 76.23, while the reported trailing P/E reads 82.80, both above the industry peer mean P/E of 39.25 and industry peer median of 34.47.
Balance sheet and returns show contrasts: return on equity equals 3.57%, slightly above the industry peer mean of 3.15%; return on assets equals 1.79%, above the industry peer mean of 0.34%. Debt to assets measures 17.13%, above the industry peer mean of 8.90%, while interest coverage remains comfortable at about 10.08x.
Capital allocation metrics display a mixed picture: price‑to‑book at 3.68 sits above the industry peer mean of 1.12, price‑to‑sales at 6.29 sits below the industry peer mean of 11.12, and free cash flow yield equals 1.80%, below the industry peer mean of 2.64%.
Operational liquidity: cash and short‑term investments $103,305,000 with a cash ratio of 53.59% and a current ratio near 1.48, while the cash conversion cycle lengthened to 63.44 days, longer than the industry peer mean of 41.49 days.
WMDST values the stock as over‑valued. The valuation premium reflects the market pricing of strong revenue growth and capital returns, but wide gaps between price multiples and peer means—paired with below‑peer operating margins and a positive MRO—suggest limited fundamental support for current market multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-18 |
| NEXT REPORT DATE: | 2026-02-17 |
| CASH FLOW | Begin Period Cash Flow | $ 90.0 M |
| Operating Cash Flow | $ 19.4 M | |
| Capital Expenditures | $ -1.20 M | |
| Change In Working Capital | $ 1.3 M | |
| Dividends Paid | $ -3.00 K | |
| Cash Flow Delta | $ 13.3 M | |
| End Period Cash Flow | $ 103.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 161.7 M | |
| Forward Revenue | $ 56.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 117.4 M | |
| Depreciation | $ 4.9 M | |
| Depreciation and Amortization | $ 4.9 M | |
| Research and Development | $ 3.2 M | |
| Total Operating Expenses | $ 144.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 44.2 M | |
| EBITDA | $ 22.0 M | |
| EBIT | $ 17.1 M | |
| Operating Income | $ 17.1 M | |
| Interest Income | — | |
| Interest Expense | $ 1.7 M | |
| Net Interest Income | $ -1.70 M | |
| Income Before Tax | $ 15.4 M | |
| Tax Provision | $ 3.5 M | |
| Tax Rate | 22.469 % | |
| Net Income | $ 9.9 M | |
| Net Income From Continuing Operations | $ 11.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.27 | |
| EPS Actual | $ 0.25 | |
| EPS Difference | $ -0.02 | |
| EPS Surprise | -7.407 % | |
| Forward EPS | $ 0.28 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 559.8 M | |
| Intangible Assets | $ 225.7 M | |
| Net Tangible Assets | $ 50.3 M | |
| Total Current Assets | $ 285.2 M | |
| Cash and Short-Term Investments | $ 103.3 M | |
| Cash | $ 103.3 M | |
| Net Receivables | $ 160.5 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 34.6 M | |
| Short-Term Debt | $ 34.9 M | |
| Total Current Liabilities | $ 192.8 M | |
| Net Debt | — | |
| Total Debt | $ 95.9 M | |
| Total Liabilities | $ 259.0 M | |
| EQUITY | ||
| Total Equity | $ 276.0 M | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 5.62 | |
| Shares Outstanding | 49.099 M | |
| Revenue Per-Share | $ 3.29 | |
| VALUATION | Market Capitalization | $ 1.0 B |
| Enterprise Value | $ 1.0 B | |
| Enterprise Multiple | 45.803 | |
| Enterprise Multiple QoQ | 3.093 % | |
| Enterprise Multiple YoY | 74.722 % | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 6.242 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.028 | |
| Asset To Liability | 2.162 | |
| Debt To Capital | 0.258 | |
| Debt To Assets | 0.171 | |
| Debt To Assets QoQ | -5.302 % | |
| Debt To Assets YoY | 233.684 % | |
| Debt To Assets IPRWA | high: 0.337 MGIC: 0.171 mean: 0.089 median: 0.084 low: 0.003 |
|
| Debt To Equity | 0.347 | |
| Debt To Equity QoQ | -1.133 % | |
| Debt To Equity YoY | 259.251 % | |
| Debt To Equity IPRWA | high: 3.306 mean: 0.73 MGIC: 0.347 median: 0.287 low: 0.014 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.682 | |
| Price To Book QoQ | 9.096 % | |
| Price To Book YoY | 69.85 % | |
| Price To Book IPRWA | MGIC: 3.682 high: 2.396 mean: 1.118 median: 0.994 low: 0.422 |
|
| Price To Earnings (P/E) | 82.805 | |
| Price To Earnings QoQ | 15.754 % | |
| Price To Earnings YoY | 61.084 % | |
| Price To Earnings IPRWA | high: 103.776 MGIC: 82.805 mean: 39.245 median: 34.473 low: -5.374 |
|
| PE/G Ratio | -21.53 | |
| Price To Sales (P/S) | 6.288 | |
| Price To Sales QoQ | 1.31 % | |
| Price To Sales YoY | 48.399 % | |
| Price To Sales IPRWA | high: 26.419 median: 11.167 mean: 11.125 MGIC: 6.288 low: 2.168 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 76.23 | |
| Forward PE/G | -19.821 | |
| Forward P/S | 19.812 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.424 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.294 | |
| Asset Turnover Ratio QoQ | 4.118 % | |
| Asset Turnover Ratio YoY | 8.122 % | |
| Asset Turnover Ratio IPRWA | MGIC: 0.294 high: 0.022 mean: 0.013 median: 0.012 low: 0.001 |
|
| Receivables Turnover | 1.031 | |
| Receivables Turnover Ratio QoQ | 1.018 % | |
| Receivables Turnover Ratio YoY | -0.466 % | |
| Receivables Turnover Ratio IPRWA | high: 5.113 median: 2.541 mean: 2.535 MGIC: 1.031 low: 0.133 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 88.471 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 63.438 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -67.612 % | |
| Cash Conversion Cycle Days IPRWA | high: 93.2 MGIC: 63.438 mean: 41.486 median: 34.388 low: 15.176 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.749 | |
| CapEx To Revenue | -0.007 | |
| CapEx To Depreciation | -0.244 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 310.4 M | |
| Net Invested Capital | $ 345.2 M | |
| Invested Capital | $ 345.2 M | |
| Net Tangible Assets | $ 50.3 M | |
| Net Working Capital | $ 92.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.536 | |
| Current Ratio | 1.479 | |
| Current Ratio QoQ | -7.982 % | |
| Current Ratio YoY | -15.781 % | |
| Current Ratio IPRWA | high: 42.318 mean: 2.625 median: 1.628 MGIC: 1.479 low: 1.182 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.353 | |
| Cost Of Debt | 1.358 % | |
| Interest Coverage Ratio | 10.08 | |
| Interest Coverage Ratio QoQ | -53.288 % | |
| Interest Coverage Ratio YoY | -8.775 % | |
| Interest Coverage Ratio IPRWA | high: 27.394 mean: 13.69 MGIC: 10.08 median: 7.759 low: -20.826 |
|
| Operating Cash Flow Ratio | 0.085 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 25.033 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3287.667 | |
| Dividend Payout Ratio | 0.0 | |
| Dividend Rate | $ 0.00 | |
| Dividend Yield | 0.0 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.352 % | |
| Revenue Growth | 6.604 % | |
| Revenue Growth QoQ | 125.932 % | |
| Revenue Growth YoY | 33.928 % | |
| Revenue Growth IPRWA | high: 20.816 % MGIC: 6.604 % median: 3.336 % mean: 2.044 % low: -10.179 % |
|
| Earnings Growth | -3.846 % | |
| Earnings Growth QoQ | -110.439 % | |
| Earnings Growth YoY | -7.703 % | |
| Earnings Growth IPRWA | high: 61.667 % median: 5.556 % mean: 3.886 % MGIC: -3.846 % low: -53.247 % |
|
| MARGINS | ||
| Gross Margin | 27.346 % | |
| Gross Margin QoQ | -2.136 % | |
| Gross Margin YoY | -1.474 % | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 10.587 % | |
| EBIT Margin QoQ | 2.627 % | |
| EBIT Margin YoY | 0.427 % | |
| EBIT Margin IPRWA | high: 80.119 % median: 65.075 % mean: 49.836 % low: 26.797 % MGIC: 10.587 % |
|
| Return On Sales (ROS) | 10.587 % | |
| Return On Sales QoQ | 2.627 % | |
| Return On Sales YoY | 0.427 % | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 18.2 M | |
| Free Cash Flow Yield | 1.795 % | |
| Free Cash Flow Yield QoQ | 207.89 % | |
| Free Cash Flow Yield YoY | 63.927 % | |
| Free Cash Flow Yield IPRWA | high: 13.954 % median: 3.151 % mean: 2.641 % MGIC: 1.795 % low: -6.017 % |
|
| Free Cash Growth | 232.35 % | |
| Free Cash Growth QoQ | -484.405 % | |
| Free Cash Growth YoY | -589.55 % | |
| Free Cash Growth IPRWA | high: 410.807 % MGIC: 232.35 % mean: 18.607 % median: -8.909 % low: -542.365 % |
|
| Free Cash To Net Income | 1.85 | |
| Cash Flow Margin | 10.16 % | |
| Cash Flow To Earnings | 1.665 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.791 % | |
| Return On Assets QoQ | -4.48 % | |
| Return On Assets YoY | 11.868 % | |
| Return On Assets IPRWA | MGIC: 1.791 % high: 0.732 % mean: 0.343 % median: 0.291 % low: -0.372 % |
|
| Return On Capital Employed (ROCE) | 4.663 % | |
| Return On Equity (ROE) | 0.036 | |
| Return On Equity QoQ | -1.189 % | |
| Return On Equity YoY | 18.429 % | |
| Return On Equity IPRWA | high: 0.071 MGIC: 0.036 mean: 0.032 median: 0.031 low: -0.037 |
|
| DuPont ROE | 3.555 % | |
| Return On Invested Capital (ROIC) | 3.844 % | |
| Return On Invested Capital QoQ | 10.333 % | |
| Return On Invested Capital YoY | -124.348 % | |
| Return On Invested Capital IPRWA | MGIC: 3.844 % high: 3.463 % median: 3.347 % mean: 2.829 % low: 0.77 % |
|