Recent News
On January 9, 2026 the company scheduled its fourth-quarter 2025 results release for after the market close on February 2, 2026 and a conference call for February 3, 2026. On February 4, 2026 Barclays trimmed its price target on MGIC from $30 to $28 while maintaining an “equal weight” view; the note referenced mixed quarterly results, insider sales, and recent analyst activity. These announcements dominated headlines within the past 13 weeks.
Technical Analysis
Directional indicators show a bearish reorientation: DI+ recently peaked and reversed, while DI– exhibited a dip-and-reversal; both behaviors signal directional conflict with downside bias and suggest that momentum now favors sellers despite an ADX reading of 24.6, which indicates only an emerging trend strength rather than a fully established one. This dynamic aligns with valuation pressure and supports the introduction’s near-term downside view.
MACD sits negative at -0.74 with a peak-and-reversal pattern and remains below its signal line (-0.24), indicating bearish momentum rather than a transition to bullish convergence; that reinforces potential price underperformance while valuations remain elevated.
MRO registers -6.86, a negative reading that implies price sits below model target and therefore retains mechanical upside pressure toward equilibrium; however, the oscillator’s recent peak-and-reversal behavior tempers that lift, implying any rebound may stall unless momentum measures improve. The combination of negative MRO and bearish MACD points to price mean-reversion rather than trend acceleration.
RSI at 51.8 occupies neutral territory; its recent peak-and-reversal suggests waning upward momentum rather than oversold strength, supporting a consolidative near-term outlook rather than immediate breakout potential.
Price relationships emphasize short-term resistance: the close at $23.39 sits below the 12‑day EMA ($24.22) and the 20‑ and 50‑day averages ($25.07 and $25.88), while remaining above the 200‑day average ($20.68). Bollinger references place the one‑standard‑deviation upper band near $27.60 and the lower two‑sigma band near $20.01, indicating the tradeable band remains wide and that the stock currently sits nearer the lower half of recent volatility—consistent with downside pressure within a broader mean‑reversion envelope.
Volume trends lack conviction: recent daily volume (~18,400) falls below 10‑ and 50‑day averages, which undercuts any sustained directional move until volume re‑accumulates. Elevated short‑term beta (42‑day beta 1.67) versus the year beta (0.77) suggests recent sensitivity to market moves, increasing swing volatility risk as trend indicators remain mixed.
Fundamental Analysis
Profitability: operating margin (EBIT margin) stands at 10.59%. That margin sits well below the industry peer mean (49.84%) and median (65.08%), indicating MGIC’s operating profitability trails typical peer levels. QoQ operating margin improved by 2.63 percentage points and YoY improved 0.43 percentage points, showing modest sequential improvement but still below peer averages.
Valuation multiples: price-to-earnings runs high at 82.80 and sits above the industry peer mean (44.34) and median (34.47), while forward P/E remains elevated at ~76.23. Price-to-book equals 3.68, above the industry peer mean (1.12) and above the peer‑range high (2.40). Free cash flow yield registers 1.80%, below the industry peer mean (2.64%). Those valuation measures, combined with WMDST’s determination that the current valuation is over‑valued, reflect stretched multiples relative to cash returns.
Earnings and cash flow: reported EPS of $0.25 missed the estimate of $0.27, an EPS surprise of -7.41%. Operating cash flow reached $19,446,000 with free cash flow of $18,246,000 and a cash‑flow‑to‑earnings ratio of 1.85, indicating cash generation modestly exceeds reported earnings. Free cash flow yield improved QoQ and YoY but remains below peer mean in absolute terms.
Balance sheet and leverage: total assets $559,806,000 and total equity $276,037,000 yield debt-to-equity of 0.347 and debt-to-assets of 17.13%. Debt metrics sit within the provided peer range (debt-to-assets peer mean 8.9%), and interest coverage near 10.08x shows solid capacity to service interest expense. Liquidity metrics show current ratio 1.48 and cash ratio 0.54; the cash balance ($103,303,000) supports near‑term obligations while share repurchases and dividend actions in recent quarters affect holding‑company cash flows.
Growth and returns: revenue growth YoY at 33.93% contrasts with the modest earnings growth figures (earnings growth YoY -7.70%); return on equity equals 3.57%, slightly above the industry peer mean (3.15%), while return on assets at 1.79% stands above its peer mean (0.34%). Asset turnover remains low at 0.2935 but exceeds the industry peer mean (0.0128) numerically; these mixed signals show top-line expansion while margin and earnings performance remain pressured.
Valuation summary: WMDST values the stock as over‑valued. Elevated P/E and P/B ratios alongside below‑peer free cash flow yield and a recent small negative EPS surprise underpin that assessment despite reasonable cash generation and conservative leverage.
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: 146.582 MGIC: 82.805 mean: 44.338 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: 5.941 % mean: 1.885 % MGIC: -3.846 % low: -90.909 % |
|
| 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 % |
|