NMI Holdings, Inc. Fundamental Analysis (NASDAQ: NMIH)
NMI Holdings, Inc. Fundamental Analysis (NASDAQ: NMIH)
NMI Holdings, Inc. (NASDAQ: NMIH) shows strong financial fundamentals with a PE ratio of 8.81, profit margin of 54.12%, and ROE of 15.14%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 8.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.4/100 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
ExcellentNMIH trades at attractive valuation levels.
Growth Score
ExcellentNMIH delivers strong and consistent growth momentum.
Financial Health Score
ModerateNMIH shows balanced financial health with some risks.
Profitability Score
ExcellentNMIH achieves industry-leading margins.
Key Financial Metrics
Is NMIH Expensive or Cheap?
P/E Ratio
NMIH trades at 8.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NMIH's PEG of 1.14 indicates fair valuation.
Price to Book
The market values NMI Holdings, Inc. at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.68 times EBITDA. This is generally considered low.
How Well Does NMIH Make Money?
Net Profit Margin
For every $100 in sales, NMI Holdings, Inc. keeps $54.12 as profit after all expenses.
Operating Margin
Core operations generate 69.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.14 in profit for every $100 of shareholder equity.
ROA
NMI Holdings, Inc. generates $9.89 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 $449.65M, reflecting robust business health.
Free Cash Flow
NMI Holdings, Inc. generates strong free cash flow of $442.73M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.83 in free cash annually.
FCF Yield
NMIH converts 12.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How NMIH Stacks Against Its Sector Peers
| Metric | NMIH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.81 | 21.28 | Better (Cheaper) |
| ROE | 15.14% | 667.00% | Weak |
| Net Margin | 54.12% | -489.00% (disorted) | Strong |
| Debt/Equity | 0.15 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 0.54 | 911.52 | Weak Liquidity |
| ROA | 9.89% | 4469169.00% | Weak |
NMIH outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, 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
62.59%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
127.85%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
66.84%
Industry Style: Value, Dividend, Cyclical
High Growth