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MTG Stock Analysis: Top Mid-Cap Buy (Score 60.4/100) | Blank Capital Research | Blank Capital Research
MTG
MGIC INVESTMENT CORP
$27.20
-0.56 (-2.02%)
Score60.4
Data as of Apr 6, 2026
MTG
MGIC INVESTMENT CORP
FinancialsInsurance
$27.20
-0.56 (-2.02%)
Open $27.76High $27.96Low $27.18Prev $27.76Vol ---52W: $21.94 – $29.97
Buy
Composite score
01234567890123456789.0123456789
Global rank
#21
Percentile
Top 1%
Business quality
83rd
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 83.3GRADE A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
14.9%
Sector: 8.5%
Dividend Analysis audit
GROWTH
1.90%
Trailing Yield
$1.90
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
15%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, MGIC INVESTMENT CORP (MTG) receives a "Buy" rating with a composite score of 60.4/100, ranked #21 out of 4446 stocks. Key factor scores: Quality 83/100, Value 78/100, Momentum 40/100. This is quantitative analysis only — not investment advice.
MGIC INVESTMENT CORP (MTG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does MGIC INVESTMENT CORP Do?
MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin. MGIC INVESTMENT CORP (MTG) is classified as a mid-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Timothy J. Mattke and employs approximately 680 people, headquartered in MILWAUKEE, Wisconsin. With a market capitalization of $5.6B, MTG is one of the notable companies in the Financials sector.
As of April 2026, MGIC INVESTMENT CORP receives a Buy rating with a composite score of 60.4/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.MTG ranks #21 out of 4,446 stocks in our coverage universe. Within the Financials sector, MGIC INVESTMENT CORP ranks #13 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MTG Stock Price and 52-Week Range
MGIC INVESTMENT CORP (MTG) currently trades at $27.20. The stock lost $0.56 (2.0%) in the most recent trading session. The 52-week high for MTG is $29.97, which means the stock is currently trading -9.2% from its annual peak. The 52-week low is $21.94, putting the stock 24.0% above its annual trough. Recent trading volume was 1.7M shares, reflecting moderate market activity.
Is MTG Overvalued or Undervalued? — Valuation Analysis
MGIC INVESTMENT CORP (MTG) carries a value factor score of 78/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 7.67x, compared to the Financials sector average of 14.88x — a discount of 48%. The price-to-book ratio stands at 1.15x, versus the sector average of 1.22x. The price-to-sales ratio is 4.83x, compared to 0.90x for the average Financials stock. On an enterprise value basis, MTG trades at 6.08x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, MGIC INVESTMENT CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
MGIC INVESTMENT CORP Profitability — ROE, Margins, and Quality Score
MGIC INVESTMENT CORP (MTG) earns a quality factor score of 83/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 14.9%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 11.6% versus the sector average of 1.2%.
On a margin basis, MGIC INVESTMENT CORP reports gross margins of 0.0%. The operating margin is 79.4% (sector: 21.8%). Net profit margin stands at 62.9%, versus 17.7% for the average Financials stock. Revenue growth is running at -0.3% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
MTG Debt, Balance Sheet, and Financial Health
MGIC INVESTMENT CORP has a debt-to-equity ratio of 29.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.45x, indicating strong short-term liquidity. Total debt on the balance sheet is $646M. Cash and equivalents stand at $267M.
MTG has a beta of 0.63, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for MGIC INVESTMENT CORP is 88/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
MGIC INVESTMENT CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, MGIC INVESTMENT CORP reported revenue of $1.22B and earnings per share (EPS) of $3.17. Net income for the quarter was $769M. Gross margin was 0.0%. Operating income came in at $970M.
In FY 2025, MGIC INVESTMENT CORP reported revenue of $1.21B and earnings per share (EPS) of $3.17. Net income for the quarter was $738M. Revenue grew 0.5% year-over-year compared to FY 2024. Operating income came in at $929M.
In Q3 2025, MGIC INVESTMENT CORP reported revenue of $305M and earnings per share (EPS) of $0.83. Net income for the quarter was $191M. Revenue grew -0.7% year-over-year compared to Q3 2024. Operating income came in at $235M.
In Q2 2025, MGIC INVESTMENT CORP reported revenue of $304M and earnings per share (EPS) of $0.81. Net income for the quarter was $192M. Revenue grew -0.3% year-over-year compared to Q2 2024. Operating income came in at $246M.
Over the past 8 quarters, MGIC INVESTMENT CORP has demonstrated a growth trajectory, with revenue expanding from $305M to $1.22B. Investors analyzing MTG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MTG Dividend Yield and Income Analysis
MGIC INVESTMENT CORP (MTG) currently pays a dividend yield of 1.9%. At this yield, a $10,000 investment in MTG stock would generate approximately $$190.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning MTG yields less than the typical sector peer. With a net margin of 62.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
MTG Momentum and Technical Analysis Profile
MGIC INVESTMENT CORP (MTG) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 15/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MTG vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing MTG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MTG vs S&P 500 (SPY) comparison to assess how MGIC INVESTMENT CORP stacks up against the broader market across all factor dimensions.
MTG Next Earnings Date
No upcoming earnings date has been announced for MGIC INVESTMENT CORP (MTG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MTG? — Investment Thesis Summary
The bull case for MGIC INVESTMENT CORP rests on several quantitative strengths. The quality score of 83/100 indicates above-average profitability and business fundamentals. The value score of 78/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 88/100) reduces downside risk.
In summary, MGIC INVESTMENT CORP (MTG) earns a Buy rating with a composite score of 60.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MTG stock.
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Institutional Research Dossier
MGIC INVESTMENT CORP (MTG) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
MGIC Investment Corp (MTG) is a leading provider of private mortgage insurance in the United States. Our Hold rating on the stock is based on the company's strong market position, healthy financial profile, and attractive valuation, balanced against concerns about potential headwinds from a softening housing market and regulatory uncertainty. The most critical takeaway is that while MGIC remains a well-run, defensive business, the current environment may present challenges that limit further upside in the near term.
Business Strategy & Overview
MGIC Investment Corp is the largest private mortgage insurer in the United States, providing mortgage default protection to lenders and government sponsored entities. The company's primary business is insuring individual residential mortgage loans, covering the unpaid loan principal, delinquent interest, and various expenses associated with defaults and foreclosures. In addition, MGIC offers contract underwriting services and reinsurance solutions.
MGIC's target market consists of mortgage originators such as banks, credit unions, and mortgage brokers, to whom it provides credit risk mitigation on loans. The company's products help lenders manage risk and meet regulatory capital requirements, particularly for loans with high loan-to-value ratios. MGIC also works with government entities like Fannie Mae and Freddie Mac, providing insurance on loans purchased or guaranteed by these GSEs.
MGIC has a dominant market share of over 40% in the U.S. private mortgage insurance industry, giving it significant scale advantages. The company's long history, conservative underwriting standards, and strong relationships with lenders have helped it weather various housing and mortgage market cycles over its 65+ year history.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.3%
Sector: 9.4%
-103% VS SCTR
Economic Moat Analysis
MGIC benefits from a narrow economic moat driven primarily by high switching costs and efficient scale. As the largest private mortgage insurer, MGIC has built deep, long-standing relationships with the largest mortgage originators in the U.S. Lenders are highly incentivized to maintain these relationships due to the complexity of integrating a new mortgage insurance provider into their operations and underwriting processes.
Additionally, the private mortgage insurance industry exhibits significant economies of scale. MGIC's leading market share and brand recognition allow it to spread fixed costs across a larger revenue base, making it difficult for smaller competitors to match its pricing and underwriting capabilities. This efficient scale advantage is further reinforced by the capital-intensive nature of the business, which requires substantial reserves and strong credit ratings to operate effectively.
However, MGIC's moat is not impenetrable. The company faces competitive pressure from government-backed mortgage insurance programs, which benefit from an implicit government guarantee. Additionally, the potential for increased regulation and capital requirements could erode MGIC's cost advantages over time.
Financial Health & Profitability
MGIC's financial profile is strong, with robust profitability, healthy capital levels, and disciplined risk management. The company's TTM revenue of $1.21 billion and net income of $738 million translate to industry-leading operating and net profit margins of 79.4% and 62.9%, respectively. This high-margin business model has allowed MGIC to generate substantial free cash flow, which totaled $311 million in the most recent fiscal year.
MGIC's balance sheet is also well-capitalized, with a debt-to-equity ratio of 29%, well below the sector average of 115%. The company's current ratio of 4.45 indicates ample liquidity to meet short-term obligations. Moreover, MGIC's credit rating of A- from S&P and A3 from Moody's provides it with access to cost-effective funding and reinsurance options.
Examining the quarterly financial history, MGIC has demonstrated consistent profitability, with operating margins ranging from 68.9% to 85.1% over the past several years. Revenue growth has been more muted, at -0.3% over the trailing twelve months compared to the sector average of 9.3%, reflecting the cyclical nature of the mortgage insurance industry.
Valuation Assessment
MGIC's valuation appears attractive, trading at a significant discount to both its historical multiples and the broader financials sector. The company's TTM P/E ratio of 8.1x is nearly 50% lower than the sector average of 15.5x. Similarly, MGIC's EV/EBITDA multiple of 1.5x is less than half the industry's 3.5x, suggesting the stock is undervalued.
From a free cash flow perspective, MGIC's TTM FCF yield of 5.6% is more than double the sector average, indicating the company is generating substantial cash flow relative to its market capitalization. This strong cash flow generation provides MGIC with the financial flexibility to continue investing in its business, maintain a healthy balance sheet, and potentially return capital to shareholders.
While MGIC's valuation metrics have contracted from their pandemic-era highs, the stock still appears attractively priced, trading at a discount to its historical averages and the broader financials sector. This suggests the market may be underappreciating the company's defensive qualities and long-term earnings power.
Risk & Uncertainty
The primary risks facing MGIC include potential headwinds from a cooling housing market, regulatory uncertainty, and heightened competition from government-backed mortgage insurance programs.
A significant slowdown in the housing market, driven by factors such as rising interest rates, could lead to higher delinquencies and claims on MGIC's insurance policies, negatively impacting the company's profitability and capital position. Additionally, increased regulatory scrutiny or changes to capital requirements for private mortgage insurers could erode MGIC's cost advantages and competitive positioning.
Another key risk is the potential for increased competition from government-backed mortgage insurance programs, such as those offered by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). These programs benefit from an implicit government guarantee, which can make them more attractive to lenders and borrowers, potentially constraining MGIC's market share and pricing power.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMGIC's dominant market position, conservative underwriting practices, and strong relationships with mortgage lenders provide a significant competitive advantage that should allow the company to continue generating robust profitability and cash flow over the long term.
BULL VIEWThe company's attractive valuation, with a P/E ratio well below the sector average, presents an opportunity for investors to gain exposure to a well-run, defensive financial services business at a compelling price.
The Bear Case
BEAR VIEWPotential headwinds from a softening housing market and increased competition from government-backed mortgage insurance programs could erode MGIC's market share and profitability, limiting the company's ability to sustain its current growth trajectory.
BEAR VIEWRegulatory uncertainty, including the possibility of higher capital requirements for private mortgage insurers, could undermine MGIC's cost advantages and erode its competitive position over time.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MTG and 4,400+ other equities.
MGIC INVESTMENT CORP exhibits a 117% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.6%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
79.4%
Sector: 21.8%
Net Margin
Bottom-line profitability
62.9%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-23%
Income Projection audit
A $10,000 investment would generate approximately $190 annually in dividends at the current trailing rate.
