📊 NMIH Key Takeaways
Is NMIH a Good Investment? Thesis Analysis
NMI Holdings demonstrates exceptional financial health with industry-leading profitability margins (55.1% net margin), robust cash generation (58.4% FCF margin), and strong organic growth (8.5% revenue increase). The company maintains fortress-like balance sheet metrics with minimal leverage (0.15x debt/equity) and exceptional interest coverage (62.2x), positioning it to weather economic cycles while returning capital to shareholders.
Why Buy NMIH? Key Strengths
- Exceptional profitability with 70.7% operating margin and 55.1% net margin indicating efficient cost structure and strong pricing power
- Outstanding cash generation with $412.5M free cash flow on $706.4M revenue (58.4% FCF margin), demonstrating high-quality earnings
- Conservative capital structure with 0.15x debt/equity ratio and 62.2x interest coverage providing significant financial flexibility
- Solid organic revenue growth of 8.5% YoY combined with increasing EPS (+11.1%) showing operational leverage
- Strong return metrics (15% ROE, 10.1% ROA) indicate efficient capital deployment and value creation
NMIH Investment Risks to Consider
- Mortgage insurance industry exposure to housing market cycles and potential refinancing slowdowns affecting premiums
- Regulatory environment changes affecting capital requirements or premium pricing in the mortgage insurance sector
- Limited cash reserves ($43.9M) relative to total assets despite strong FCF generation may constrain opportunistic investments
- High insider trading activity (23 Form 4 filings in 90 days) warrants monitoring for potential significant transactions
Key Metrics to Watch
- Mortgage insurance premiums written and in-force policies volume
- Loss ratios and claims development in underwriting results
- Operating margin sustainability as revenue scales
- Debt/equity ratio and capital allocation decisions
- Free cash flow conversion and dividend/buyback capacity
NMIH Financial Metrics
💡 AI Analyst Insight
The 58.4% 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 Profitability Ratios
NMIH vs Finance Sector
How NMI Holdings, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NMIH Overvalued or Undervalued?
Based on fundamental analysis, NMI Holdings, Inc. appears fundamentally strong 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.
NMIH Balance Sheet & Liquidity
NMIH 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NMIH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $132.2M | $67.7M | $0.86 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NMIH Capital Allocation
NMIH SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NMI Holdings, Inc. (CIK: 0001547903)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NMIH
What is the AI rating for NMIH?
NMI Holdings, Inc. (NMIH) has an AI rating of STRONG BUY with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NMIH's key strengths?
Claude: Exceptional profitability with 70.7% operating margin and 55.1% net margin indicating efficient cost structure and strong pricing power. Outstanding cash generation with $412.5M free cash flow on $706.4M revenue (58.4% FCF margin), demonstrating high-quality earnings.
What are the risks of investing in NMIH?
Claude: Mortgage insurance industry exposure to housing market cycles and potential refinancing slowdowns affecting premiums. Regulatory environment changes affecting capital requirements or premium pricing in the mortgage insurance sector.
What is NMIH's revenue and growth?
NMI Holdings, Inc. reported revenue of $706.4M.
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 $4.92.
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 April 2026, NMI Holdings, Inc. has a STRONG BUY rating with 87% 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 15.0% (sector avg: 12%), net margin of 55.1% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy NMIH stock in 2026?
Our dual AI analysis gives NMI Holdings, Inc. a combined STRONG 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 $419.3M, with capital expenditures of $6.8M. FCF margin is 58.4%.
How does NMIH compare to other Finance stocks?
Vs Finance sector averages: Net margin 55.1% (avg: 25%), ROE 15.0% (avg: 12%), current ratio N/A (avg: 1.2).