Mgic Investment (MTG) Fundamental Analysis: Revenue, Earnings & Valuation

7.09 / 10

Outperform

MGIC Investment displays good fundamental quality (7.1/10). Key strengths include healthy Days Sales Outstanding and Net Cash Flow from Operating Activities year-over-year growth. However, challenges such as a negative Net Profit Margin and a high Net income-Revenue discrepancy temper the outlook. Investment recommendation is encouraging but calls for monitoring specific profitability metrics.

Analysis Checks(9/10)

Revenue-MV

Value-0.92

Score3/3

Weight35.23%

1M Return32.65%

Days sales outstanding

Value313.91

Score2/3

Weight1.57%

1M Return1.29%

Profit-MV

Value1.66

Score2/3

Weight4.96%

1M Return3.72%

Net income-Revenue

Value1.41

Score1/3

Weight0.92%

1M Return0.68%

PB-ROE

Value0.02

Score2/3

Weight0.88%

1M Return0.78%

Net cash flow from operating activities (YoY growth rate %)

Value-482.59

Score3/3

Weight12.26%

1M Return9.56%

Net profit margin (%)

Value-1256.29

Score2/3

Weight1.05%

1M Return0.86%

Income tax / Total profit (%)

Value20.48

Score3/3

Weight14.13%

1M Return10.45%

Asset-MV

Value-0.50

Score3/3

Weight20.78%

1M Return10.97%

Cash-MV

Value0.14

Score2/3

Weight8.21%

1M Return6.45%

Is MTG fundamentally strong?

MTG scores 7.09/10 on fundamentals and holds a Discounted valuation at present. Backed by its 14.31% ROE, 60.84% net margin, 8.11 P/E ratio, 1.16 P/B ratio, and 9.60% earnings growth, these metrics solidify its Outperform investment rating.