MGIC Investment Corporation (MTG) AI Stock Analysis

Established in 1957 and based in Milwaukee, Wisconsin, MGIC Investment Corporation provides private mortgage insurance and mortgage credit risk management solutions across the United States, Puerto Rico, and Guam. Its primary mortgage insurance protects lenders against defaults on residential mortgage loans, covering unpaid principal, delinquent interest, and foreclosure-related expenses. The company also offers contract underwriting services and engages in reinsurance activities. MGIC serves residential mortgage originators, including commercial banks, savings institutions, credit unions, and mortgage brokers, supporting responsible lending practices across the housing finance system.

MGIC has maintained steady revenue alongside high margins over recent fiscal periods. Revenue moved from $1.19B in FY2021 to $1.17B in FY2022 and $1.16B in FY2023, before rebounding to $1.21B in FY2024 and $1.21B in FY2025, reflecting a 5-year revenue CAGR of 0.2%. Profitability remains strong, with net income reaching $738.3M and an operating margin of 76.5% in FY2025. Diluted EPS rose to $3.15 in FY2025 and $3.20 over the trailing twelve months. For the latest quarter ended June 30, 2026, revenue fell 2.9% year-over-year, while quarterly earnings grew 6.2%.

MGIC maintains a conservative balance sheet. As of June 30, 2026, the company held $5.91B in cash and short-term investments against total debt of $646.9M, resulting in a net cash position of $5.26B and a current ratio of 37.66. Shareholders' equity stood at $5.01B, with a debt-to-equity ratio of 0.13. In FY2025, operating cash flow reached $852.8M and capital expenditures were $1.0M, generating $851.8M in free cash flow. Cash was returned to shareholders via $788.6M in share buybacks and $132.5M in dividends paid.

At a last close of $27.85, MTG has a market capitalization of $5.71B. The stock trades at a trailing P/E of 8.7x and a forward P/E of 8.7x, below the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. Its price-to-sales multiple is 4.8x compared to the peer median of 3.2x, while its PEG ratio sits at 0.40. Over the past year, MTG gained 7.2%, trailing the S&P 500 return of 16.8%, but outperformed over five years with a 91.4% gain versus 83.0% for the index.

MGIC offers an annual forward dividend of $0.68 per share, representing a dividend yield of 2.44% and a payout ratio of 19.3%. The company has distributed quarterly dividends for 8 consecutive years, achieving a 5-year annualized dividend growth rate of 18.5%. Its most recent ex-dividend date occurred on August 5, 2026.

Wall Street coverage includes 6 analysts, consisting of 1 Strong Buy, 4 Holds, and 1 Sell. The mean price target is $31.40, representing an upside of 12.7% from the last close of $27.85. For FY2026, consensus estimates project EPS of $3.27 on revenue of $1.19B, followed by EPS of $3.48 and revenue of $1.20B in FY2027. MGIC beat EPS expectations in 3 of the last 4 quarters and is scheduled to report earnings on November 4, 2026.

This page is an AI-written research summary of MGIC Investment Corporation (MTG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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