CluenexMGIC Investment Corporation MTG
MGIC Investment Corporation scores average on business quality (4.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What MGIC Investment Corporation does
MGIC Investment Corp provides private mortgage insurance to lenders across the United States, protecting them against borrower defaults. Homebuyers pay the premiums when making down payments below 20 percent, securing mortgage financing they otherwise could not access.
- What it does best
MGIC dominates through scale and deep integration with mortgage originators, yielding a 76.9 percent operating margin that dwarfs RKT at 22.9 percent. This underwriting efficiency stems from decades of risk data, locking lenders into a platform that is difficult to replicate.
- The main risk
Credit performance depends entirely on the housing market and borrower health. A sharp rise in unemployment or home price declines would spike defaults, forcing higher claims payouts that directly compress its 59.2 percent net margin.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 76.9 percent and FCF margin at 59.0 percent, ranking in the 97th sector percentile. This exceptional profitability scales efficiently as low incremental underwriting costs drive massive net income conversion.
Regulatory capital requirements and deep lender relationships create a durable moat protecting it from new entrants. Its operating margin ranks in the top decile of its sector at the 99th percentile.
Revenue growth stalled at 0.5 percent with total revenue at $1.2 billion, tracking well below the sector's growth percentiles and reflecting a stagnant top-line expansion rate compared to historical annual figures.
Total debt sits at $646 million against $369 million in cash, supported by an interest coverage ratio of 25.8x where debt costs are easily managed. Free cash flow reached $706 million, indicating a cash-generative profile.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on MTG
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
MGIC Investment Corporation scores average on the Cluenex quality check (4.8 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026, after the close.
See MTG today
- Today's verdict on MTG, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “MGIC Investment Corporation (MTG)”, https://cluenex.com/stocks/mtg/, data as of Oct 10, 2026.