📊 NMIH Key Takeaways
Is NMI Holdings, Inc. (NMIH) a Good Investment?
NMI Holdings exhibits exceptional profitability (54% net margin) and outstanding free cash flow generation ($115M; 62.7% FCF margin) with a fortress balance sheet (0.15x debt/equity), but the concerning disconnect between high margins and very low returns on capital (3.8% ROE) combined with flat net income growth despite 8.5% revenue growth suggests underlying operational headwinds or capital deployment inefficiency that require clarification.
NMIH delivers strong core profitability and cash generation, with a 70.7% operating margin, 55.1% net margin, 15% ROE, low leverage (0.15x D/E), and a 58.4% FCF margin that supports reinvestment and capital returns. Revenue grew 8.5% YoY and EPS increased 11.1% despite flat net income, indicating operating efficiency and share count reduction, while 62.2x interest coverage underscores resiliency. Cyclical housing and credit risks persist, but current fundamentals indicate durable earnings power.
Why Buy NMI Holdings, Inc. Stock? NMIH Key Strengths
- Exceptional profitability with 54.1% net margin and 68.1% operating margin, demonstrating strong underwriting performance and pricing power
- Outstanding free cash flow conversion of $115M (62.7% FCF margin) with minimal capex ($1.1M), indicating a highly scalable and capital-efficient business model
- Conservative balance sheet with 0.15x debt/equity and 15.5x interest coverage, providing significant financial flexibility and low financial distress risk
- Exceptional margins and profitability (70.7% operating, 55.1% net) with 15% ROE
- Strong balance sheet with low leverage (0.15x D/E) and very high interest coverage (62.2x)
- Robust free cash flow and conversion (58.4% FCF margin; minimal capex)
NMIH Stock Risks: NMI Holdings, Inc. Investment Risks
- Net income growth stalled at 0% YoY despite 8.5% revenue growth, suggesting rising loss ratios, claims inflation, or margin compression in core business
- Severely depressed returns on capital (3.8% ROE, 2.5% ROA) despite exceptional margins indicate either excess regulatory capital requirements or inefficient asset deployment for a surety insurer
- Diluted EPS growth (+11.1%) driven entirely by share buybacks rather than underlying earnings expansion, masking weak fundamental business momentum
- Housing and credit cycle sensitivity; rising delinquencies or unemployment could elevate losses
- Dependence on mortgage origination volume and persistency; higher rates/low affordability can slow NIW
- Regulatory and capital framework changes (PMIERs/GSE) and potential reinsurance market tightening
Key Metrics to Watch
- Combined ratio and underwriting loss ratios - critical to understand earnings growth stagnation and future profitability trajectory
- Return on equity and capital deployment strategy - assess whether low ROE reflects regulatory requirements or operational inefficiency
- Premium volume and pricing trends - determine if revenue growth can translate into net income expansion
- Loss ratio and delinquency trends
- New Insurance Written (NIW) growth and persistency
NMI Holdings, Inc. (NMIH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 62.7% 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.
NMIH Profit Margin, ROE & Profitability Analysis
NMIH vs Finance Sector: How NMI Holdings, Inc. Compares
How NMI Holdings, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NMI Holdings, Inc. Stock Overvalued? NMIH Valuation Analysis 2026
Based on fundamental analysis, NMI Holdings, Inc. 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.
NMI Holdings, Inc. Balance Sheet: NMIH Debt, Cash & Liquidity
NMIH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NMI Holdings, Inc.'s revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.84 reflects profitable operations.
NMIH Revenue Growth, EPS Growth & YoY Performance
NMIH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $173.2M | $99.3M | $1.28 |
| Q3 2025 | $166.1M | $89.1M | $1.15 |
| Q2 2025 | $162.1M | $89.1M | $1.13 |
| Q1 2025 | $156.3M | $89.1M | $1.08 |
| Q3 2024 | $148.2M | $74.5M | $1.00 |
| Q2 2024 | $142.7M | $74.5M | $0.95 |
| Q1 2024 | $136.8M | $74.5M | $0.88 |
| Q3 2023 | $130.6M | $67.7M | $0.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NMI Holdings, Inc. Dividends, Buybacks & Capital Allocation
NMIH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NMI Holdings, Inc. (CIK: 0001547903)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779147777.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779147718.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779147645.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779147619.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779147496.xml | View → |
❓ Frequently Asked Questions about NMIH
What is the AI rating for NMIH?
NMI Holdings, Inc. (NMIH) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NMIH's key strengths?
Claude: Exceptional profitability with 54.1% net margin and 68.1% operating margin, demonstrating strong underwriting performance and pricing power. Outstanding free cash flow conversion of $115M (62.7% FCF margin) with minimal capex ($1.1M), indicating a highly scalable and capital-efficient business model. ChatGPT: Exceptional margins and profitability (70.7% operating, 55.1% net) with 15% ROE. Strong balance sheet with low leverage (0.15x D/E) and very high interest coverage (62.2x).
What are the risks of investing in NMIH?
Claude: Net income growth stalled at 0% YoY despite 8.5% revenue growth, suggesting rising loss ratios, claims inflation, or margin compression in core business. Severely depressed returns on capital (3.8% ROE, 2.5% ROA) despite exceptional margins indicate either excess regulatory capital requirements or inefficient asset deployment for a surety insurer. ChatGPT: Housing and credit cycle sensitivity; rising delinquencies or unemployment could elevate losses. Dependence on mortgage origination volume and persistency; higher rates/low affordability can slow NIW.
What is NMIH's revenue and growth?
NMI Holdings, Inc. reported revenue of $183.5M.
Does NMIH pay dividends?
NMI Holdings, Inc. does not currently pay dividends.
Where can I find NMIH SEC filings?
Official SEC filings for NMI Holdings, Inc. (CIK: 0001547903) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NMIH's EPS?
NMI Holdings, Inc. has a diluted EPS of $1.28.
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 NMIH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, NMI Holdings, Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NMIH stock overvalued or undervalued?
Valuation metrics for NMIH: ROE of 3.8% (sector avg: 12%), net margin of 54.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy NMIH stock in 2026?
Our dual AI analysis gives NMI Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NMIH's free cash flow?
NMI Holdings, Inc.'s operating cash flow is $116.1M, with capital expenditures of $1.1M. FCF margin is 62.7%.
How does NMIH compare to other Finance stocks?
Vs Finance sector averages: Net margin 54.1% (avg: 25%), ROE 3.8% (avg: 12%), current ratio N/A (avg: 1.2).