NMI Holdings (NMIH) AI Stock Analysis

• Market Cap: $3.05B
• Dividend Yield: N/A
• Average Volume (3M): 392.17K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.66
• Revenue Growth: 9.99%
• EPS Growth: 11.47%
• Country: US
• Employees: 230
• Sector: Financial
• Sector Strength: 76
• Industry: Insurance - Specialty
• EPS (TTM): 1.22
• Shares Outstanding: 77,574,120
• 10 Day Avg. Volume: 285,213
• 30 Day Avg. Volume: 392,167
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 5.53
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 7.24
• 1Y Price Target: $44.50
• Price Target Upside: 12.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 83 Outperform
• Price Target: $46.00 ▲(16.13% Upside)

NMI Holdings receives a strong overall score driven by robust financial performance and positive earnings call highlights. The company's solid valuation and stable technical indicators further support its favorable position in the specialty insurance industry. While macro risks are present, the company's strategic approach mitigates these concerns.

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 generates revenue primarily through the issuance of private mortgage insurance policies. The company earns premium income from mortgage insurers, which is calculated based on the amount of coverage provided and the risk associated with the underlying mortgage loans. Additionally, NMIH collects fees for its risk management services, which may include consulting and analytics services to help lenders manage their mortgage portfolios effectively. The company's revenue is also supported by its strategic partnerships with various lending institutions, which ensure a steady flow of business. Factors contributing to its earnings include the overall health of the housing market, interest rates, and the demand for mortgage financing.

NMI Holdings Financial Statement Overview

Summary

NMI Holdings exhibits strong financial health with robust revenue growth, high profitability margins, a stable balance sheet, and efficient cash flow management. The company's financial performance indicates a well-managed business with a solid foundation for future growth. Potential risks include maintaining growth momentum and optimizing asset utilization.

Income Statement

NMI Holdings has demonstrated strong financial performance as evidenced by its increasing revenue and profitability. The gross profit margin remained consistently high, with a TTM gross profit margin of 99.33%. The net profit margin for the TTM period was 55.93%, reflecting effective cost management. Revenue growth has been robust, with a notable increase of 16.61% from 2023 to 2024. The EBIT margin was 72.95%, and the EBITDA margin stood at 78.62%, indicating strong operational efficiency. Overall, the company exhibits solid growth and profitability trends.

Balance Sheet

The balance sheet of NMI Holdings shows a healthy financial position with a debt-to-equity ratio of 0.18, suggesting conservative leverage. The return on equity (ROE) for the TTM period was 16.09%, indicating efficient use of equity capital. The equity ratio was 67.17%, underscoring financial stability. While the balance sheet is strong, there is room for improvement in asset utilization.

Cash Flow

NMI Holdings has demonstrated strong cash flow performance, with a free cash flow growth rate of -1.15% year over year, indicating stability in cash generation. The operating cash flow to net income ratio was 1.03, suggesting healthy cash flow relative to profit. The free cash flow to net income ratio was 1.02, reflecting effective conversion of earnings to cash. Overall, the company's cash flow management appears robust, supporting its operations and growth initiatives.

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	661.70M	650.97M	579.00M	524.46M	485.64M	436.19M
EBITDA	519.52M	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	416.07M	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: 39.61
• 50DMA: Positive
• 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 39.61 is above the 20-day moving average (MA) of 39.30, above the 50-day MA of 39.35, and above the 200-day MA of 37.63, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 37.51 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
ACT	84 Outperform	$5.55B	8.51	13.47%	2.11%	3.15%	5.70%
NMIH	83 Outperform	$3.05B	8.32	16.91%	―	9.99%	11.47%
ESNT	81 Outperform	$6.18B	9.13	12.94%	1.92%	4.79%	-0.76%
RDN	78 Outperform	$4.70B	8.73	13.07%	2.88%	0.24%	3.14%
MTG	75 Outperform	$6.42B	9.12	14.85%	1.93%	3.26%	12.70%
AGO	69 Neutral	$3.87B	8.84	8.38%	1.64%	5.89%	-27.45%
Sector *	68 Neutral	$17.79B	11.64	10.28%	3.76%	9.64%	1.17%

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.