NMI Holdings, Inc.
NMI Holdings, Inc. Fundamental Analysis
NMI Holdings, Inc. (NMIH) shows strong financial fundamentals with a PE ratio of 7.54, profit margin of 55.07%, and ROE of 0.06%. The company generates $0.7B in annual revenue with strong year-over-year growth of 12.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NMIH's fundamental strength across five key dimensions:
Efficiency Score
WeakNMIH struggles to generate sufficient returns from assets.
Valuation Score
ModerateNMIH shows balanced valuation metrics.
Growth Score
ExcellentNMIH delivers strong and consistent growth momentum.
Financial Health Score
ModerateNMIH shows balanced financial health with some risks.
Profitability Score
ModerateNMIH maintains healthy but balanced margins.
Key Financial Metrics
Is NMIH Expensive or Cheap?
P/E Ratio
NMIH trades at 7.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NMIH's PEG of 2.62 indicates potential overvaluation.
Price to Book
The market values NMI Holdings, Inc. at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 86.54 times EBITDA. This signals the market has high growth expectations.
How Well Does NMIH Make Money?
Net Profit Margin
For every $100 in sales, NMI Holdings, Inc. keeps $55.07 as profit after all expenses.
Operating Margin
Core operations generate 70.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.06 in profit for every $100 of shareholder equity.
ROA
NMI Holdings, Inc. generates $0.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NMI Holdings, Inc. generates strong operating cash flow of $420.22M, reflecting robust business health.
Free Cash Flow
NMI Holdings, Inc. generates strong free cash flow of $413.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.38 in free cash annually.
FCF Yield
NMIH converts 14.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.001
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.001
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How NMIH Stacks Against Its Sector Peers
| Metric | NMIH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.54 | 18.91 | Better (Cheaper) |
| ROE | 0.06% | 788.00% | Weak |
| Net Margin | 55.07% | 2164.00% | Weak |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 0.33 | 616.06 | Weak Liquidity |
| ROA | 0.01% | -23806.00% (disorted) | Weak |
NMIH outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NMI Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.85%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
77.23%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
60.03%
Industry Style: Value, Dividend, Cyclical
High Growth