NMI Holdings (NMIH) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: N/A
• Average Volume (3M): 489.23K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.67
• Revenue Growth: 9.99%
• EPS Growth: 11.47%
• Country: US
• Employees: 230
• Sector: Financial
• Sector Strength: 69
• Industry: Insurance - Specialty
• EPS (TTM): 1.22
• Shares Outstanding: 77,574,120
• 10 Day Avg. Volume: 488,736
• 30 Day Avg. Volume: 489,225
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 5.53
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 9.67
• 1Y Price Target: $44.67
• Price Target Upside: 14.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 81 Outperform
• Price Target: $44.00 ▲(12.88% Upside)

NMI Holdings receives a strong overall score due to its robust financial performance, efficient cash flow management, and positive earnings call highlights. The company's undervaluation and stable technical indicators further support its potential for growth, despite macroeconomic risks and regional housing market pressures.

Positive Factors

Credit Profile

NMIH has a more defensive credit profile than peers, which suggests the company should perform better than peers from a credit perspective in an economic slowdown.

Growth Potential

NMIH's book value has grown significantly over the past five years, highlighting strong growth in insured in-force (IIF) and high ROEs, with expectations of continued above-industry growth.

Valuation

The current valuation of NMIH creates a compelling entry point for investors due to its lower trading price compared to historical averages and peers.

Negative Factors

Economic Environment

NMIH could be an outsized beneficiary of higher refi activity as interest rates decline and borrowers refinance mortgages issued in 2023/24.

Market Competition

Management expects market share gains to continue to outpace the industry, which should lead to higher relative book value growth.

NMI Holdings Business Overview & Revenue Model

Company Description

NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. NMI Holdings, Inc. was incorporated in 2011 and is headquartered in Emeryville, California.

How the Company Makes Money

NMI Holdings makes money primarily through the premiums it earns on its mortgage insurance policies. These premiums are paid by borrowers, usually on a monthly basis, as part of their mortgage agreements. The company's revenue model is driven by the volume of new insurance written and the effective management of its existing insurance portfolio. Significant revenue streams include both new policy issuance and the ongoing collection of premiums from existing policies. NMI Holdings also benefits from strategic partnerships with mortgage lenders and servicers, which facilitate the distribution and origination of its insurance products. Key factors contributing to its earnings include housing market conditions, interest rates, and regulatory changes that impact mortgage lending and insurance practices.

NMI Holdings Financial Statement Overview

Summary

NMI Holdings demonstrates strong financial performance with robust revenue growth, high profitability margins, and an improving balance sheet. The company efficiently manages cash flows, reinforcing its financial health. The absence of long-term debt reduces financial risk, though it might limit growth opportunities through leverage.

Income Statement

NMI Holdings has demonstrated strong financial performance with consistent revenue growth, marked by a 12.42% increase from 2022 to 2023 and 12.41% from 2021 to 2022. The company maintains high gross and net profit margins, with a net profit margin of 55.30% in 2023. The absence of EBIT and EBITDA margins for 2024 is offset by historical data showing an EBIT margin of 99.65% in 2023, indicative of efficient operations. These factors contribute to a robust financial outlook.

Balance Sheet

The balance sheet reflects a solid financial structure with zero debt in 2024, which significantly improves the debt-to-equity ratio compared to previous years. The equity ratio has improved to 66.19% in 2024, up from 65.48% in 2023, suggesting strong equity backing. Return on equity is also strong at 16.24% in 2023, though slightly lower than previous years due to increased equity base. The overall stability is commendable, but the absence of debt may also indicate missed leverage opportunities.

Cash Flow

NMI Holdings exhibits strong cash flow management with a 18.10% growth in free cash flow from 2022 to 2023. The company maintains favorable ratios, such as a free cash flow to net income ratio of 1.02 in 2023, indicating efficient conversion of profits into cash. Operating cash flow has consistently exceeded net income, with a ratio of 1.07 in 2023, reinforcing sound operational efficiency. The cash flow stability and growth reflect a healthy financial position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	679.62M	650.97M	579.00M	524.46M	485.64M	436.19M
Gross Profit	501.36M	650.97M	579.00M	524.46M	485.64M	436.19M
EBITDA	388.80M	512.24M	456.46M	421.34M	339.75M	252.42M
Net Income	377.69M	360.11M	322.11M	292.90M	231.13M	171.57M
Balance Sheet
Total Assets	3.59B	3.35B	2.94B	2.52B	2.45B	2.17B
Cash, Cash Equivalents and Short-Term Investments	84.01M	54.22M	95.35M	42.25M	73.48M	121.38M
Total Debt	0.00	415.15M	397.60M	396.05M	394.62M	393.30M
Total Liabilities	1.17B	1.13B	1.01B	902.30M	884.79M	797.08M
Stockholders Equity	2.42B	2.22B	1.93B	1.61B	1.57B	1.37B
Cash Flow
Free Cash Flow	394.67M	386.70M	333.31M	302.82M	313.48M	240.44M
Operating Cash Flow	393.75M	393.60M	342.68M	313.39M	325.72M	252.60M
Investing Cash Flow	-268.71M	-339.29M	-200.00M	-289.79M	-374.18M	-629.55M
Financing Cash Flow	-103.66M	-96.70M	-90.42M	-55.83M	-1.83M	462.80M

NMI Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMIH, the sentiment is Positive. The current price of 38.98 is above the 20-day moving average (MA) of 37.95, below the 50-day MA of 39.54, and above the 200-day MA of 37.55, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMIH.

NMI Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NMIH	81 Outperform	$3.02B	8.27	16.91%	―	9.99%	11.47%
RDN	78 Outperform	$4.53B	8.43	13.07%	2.94%	2.95%	4.08%
ESNT	78 Outperform	$6.11B	8.79	12.94%	1.96%	5.93%	-0.76%
ACT	78 Outperform	$5.48B	8.43	13.47%	2.06%	3.15%	5.70%
MTG	75 Outperform	$6.26B	8.90	14.85%	1.99%	3.26%	12.70%
Sector *	67 Neutral	$17.03B	11.60	9.79%	3.95%	10.64%	1.89%
AGO	66 Neutral	$4.23B	10.11	8.38%	1.59%	-4.43%	-45.42%

NMI Holdings Corporate Events

NMI Holdings Concludes Annual Stockholders Meeting with Key Decisions

On May 8, 2025, NMI Holdings held its Annual Meeting of Stockholders, where several key decisions were made. Stockholders elected directors, approved executive compensation, and ratified BDO USA, LLP as the independent accounting firm for 2025. These decisions reflect the company’s ongoing governance practices and could influence its strategic direction and stakeholder relations.