📊 MTG Key Takeaways
Is Mgic Investment Corp. (MTG) a Good Investment?
MGIC demonstrates exceptional operational efficiency with 69.6% operating margins and a fortress balance sheet (0.13x debt/equity, 23.2x interest coverage), but faces significant headwinds with essentially flat revenue growth (+0.5% YoY), declining net income (-3.2% YoY), and an anemic 3.3% ROE that fails to generate adequate returns on substantial equity base. The company is financially stable but fundamentally stagnant.
MGIC delivers exceptional profitability and cash generation with very high operating and net margins, double‑digit ROE/ROA, and low leverage supported by strong interest coverage. While revenue is flat and net income slightly declined, free cash flow remains robust and EPS rose, indicating resilient fundamentals and capacity for continued capital strength. Absent a sharp rise in mortgage delinquencies, the balance sheet and cash profile support durable performance.
Why Buy Mgic Investment Corp. Stock? MTG Key Strengths
- Exceptional operating margins (69.6%) and net margins (55.6%) indicate strong pricing power and operational efficiency in mortgage insurance
- Conservative capital structure with 0.13x debt/equity ratio and excellent 23.2x interest coverage provides financial fortress and crisis resilience
- Strong free cash flow generation ($76.7M) with 25.8% FCF margin supports dividends and buybacks despite stagnant earnings
- Exceptional profitability (76.5% operating margin, 60.8% net margin)
- Strong free cash flow with minimal capex (70% FCF margin)
- Conservative leverage (0.12x D/E) and high interest coverage (26.1x)
MTG Stock Risks: Mgic Investment Corp. Investment Risks
- Revenue growth essentially flat (+0.5% YoY) with declining net income (-3.2% YoY) signals structural headwinds in mortgage insurance demand or market share erosion
- Critically low ROE of 3.3% on $5.0B equity base suggests capital is not being deployed productively; insufficient returns for equity investors
- Mortgage insurance industry exposure to housing market cycles; high margins may compress during downturns or if mortgage origination volume declines
- Housing cycle/credit losses: higher delinquencies could compress margins
- Flat revenue growth limits fundamental compounding if NIW slows
- Regulatory capital or competitive pricing pressure in mortgage insurance
Key Metrics to Watch
- Mortgage insurance premium revenue trend and origination volume trends in housing market
- ROE trajectory and management's capital allocation decisions given current low returns
- Net income growth resumption and revenue stabilization indicators
- Delinquency and loss ratios
- New insurance written (NIW) and persistency
Mgic Investment Corp. (MTG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MTG Profit Margin, ROE & Profitability Analysis
MTG vs Finance Sector: How Mgic Investment Corp. Compares
How Mgic Investment Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mgic Investment Corp. Stock Overvalued? MTG Valuation Analysis 2026
Based on fundamental analysis, Mgic Investment Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mgic Investment Corp. Balance Sheet: MTG Debt, Cash & Liquidity
MTG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mgic Investment Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.49 reflects profitable operations.
MTG Revenue Growth, EPS Growth & YoY Performance
MTG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $297.1M | $165.3M | $0.75 |
| Q3 2025 | $304.5M | $191.1M | $0.77 |
| Q2 2025 | $304.2M | $192.5M | $0.77 |
| Q1 2025 | $294.4M | $174.1M | $0.64 |
| Q3 2024 | $296.5M | $182.8M | $0.64 |
| Q2 2024 | $290.7M | $191.1M | $0.66 |
| Q1 2024 | $284.0M | $154.5M | $0.53 |
| Q3 2023 | $292.8M | $182.8M | $0.64 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mgic Investment Corp. Dividends, Buybacks & Capital Allocation
MTG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mgic Investment Corp. (CIK: 0000876437)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MTG
What is the AI rating for MTG?
Mgic Investment Corp. (MTG) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MTG's key strengths?
Claude: Exceptional operating margins (69.6%) and net margins (55.6%) indicate strong pricing power and operational efficiency in mortgage insurance. Conservative capital structure with 0.13x debt/equity ratio and excellent 23.2x interest coverage provides financial fortress and crisis resilience. ChatGPT: Exceptional profitability (76.5% operating margin, 60.8% net margin). Strong free cash flow with minimal capex (70% FCF margin).
What are the risks of investing in MTG?
Claude: Revenue growth essentially flat (+0.5% YoY) with declining net income (-3.2% YoY) signals structural headwinds in mortgage insurance demand or market share erosion. Critically low ROE of 3.3% on $5.0B equity base suggests capital is not being deployed productively; insufficient returns for equity investors. ChatGPT: Housing cycle/credit losses: higher delinquencies could compress margins. Flat revenue growth limits fundamental compounding if NIW slows.
What is MTG's revenue and growth?
Mgic Investment Corp. reported revenue of $297.1M.
Does MTG pay dividends?
Mgic Investment Corp. pays dividends, with $35.2M distributed to shareholders in the trailing twelve months.
Where can I find MTG SEC filings?
Official SEC filings for Mgic Investment Corp. (CIK: 0000876437) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MTG's EPS?
Mgic Investment Corp. has a diluted EPS of $0.76.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MTG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Mgic Investment Corp. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MTG stock overvalued or undervalued?
Valuation metrics for MTG: ROE of 3.3% (sector avg: 12%), net margin of 55.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy MTG stock in 2026?
Our dual AI analysis gives Mgic Investment Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MTG's free cash flow?
Mgic Investment Corp.'s operating cash flow is $76.9M, with capital expenditures of $184.0K. FCF margin is 25.8%.
How does MTG compare to other Finance stocks?
Vs Finance sector averages: Net margin 55.6% (avg: 25%), ROE 3.3% (avg: 12%), current ratio N/A (avg: 1.2).