NMI Holdings (NMIH) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: N/A
• Average Volume (3M): 424.09K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.62
• Revenue Growth: 8.86%
• EPS Growth: 9.51%
• Country: US
• Employees: 230
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 1.21
• Shares Outstanding: 76,867,930
• 10 Day Avg. Volume: 430,000
• 30 Day Avg. Volume: 424,094
• PEG Ratio: 0.53
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 4.51
• P/FCF Ratio: 7.59
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 6.49
• 1Y Price Target: $44.60
• Price Target Upside: 17.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.92
• Revenue Forecast (FY): $602.50M

• Rating: 79 Outperform
• Price Target: $43.00 ▲(12.80% Upside)

NMI Holdings' strong financial performance and attractive valuation are the primary drivers of its score. The company's robust profitability and efficient cost management, highlighted in the earnings call, further support its positive outlook. Technical indicators suggest moderate bullish momentum, though caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Record revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Operational Efficiency

Efficient cost management and low expense ratios enhance profitability and provide a competitive edge in the insurance industry.

Insurance Portfolio Growth

Growth in insurance-in-force reflects strong market position and increased customer trust, contributing to sustained revenue streams.

Negative Factors

Increased Claims Expense

Rising claims expenses could pressure margins and profitability, potentially impacting financial performance if trends continue.

Potential Macro Risks

Macro risks like labor market strain can affect mortgage markets, potentially reducing demand for mortgage insurance products.

Geographic Market Pressures

Declining house price appreciation in key markets could reduce new mortgage originations, impacting future revenue 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 premiums collected from its private mortgage insurance policies. The company charges lenders a premium to insure a portion of the mortgage amount, which provides coverage against borrower defaults. Additionally, NMIH earns income from investment income on the premiums it receives before claims are paid out. The company also benefits from economies of scale as it grows its insurance portfolio, allowing it to spread risk across a larger base. Significant partnerships with mortgage lenders, as well as a focus on expanding its market share in the PMI industry, contribute positively to its earnings. Furthermore, NMI Holdings' commitment to advanced technology and data analytics enhances its underwriting processes and risk assessment, improving profitability.

NMI Holdings Financial Statement Overview

Summary

NMI Holdings demonstrates strong profitability with high net profit and EBIT margins. The balance sheet is solid with low debt-to-equity, and cash flow is efficient despite recent growth challenges. Overall, the company maintains excellent financial health, though revenue and cash flow growth have slowed.

Income Statement

NMI Holdings demonstrates strong profitability with a high net profit margin of 55.02% TTM, supported by a robust EBIT margin of 74.79% and EBITDA margin of 75.22%. The revenue growth rate of 1.85% TTM indicates steady growth, although it has slowed compared to previous years. Overall, the company maintains excellent profitability and growth metrics.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.166 TTM, indicating prudent leverage. The return on equity is strong at 16.08% TTM, showcasing effective use of equity capital. The equity ratio is healthy, suggesting a stable asset base. However, the slight decrease in return on equity over time may warrant attention.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -0.68% TTM, which could be a concern if it continues. However, the operating cash flow to net income ratio of 1.22 TTM and free cash flow to net income ratio of 0.996 indicate efficient cash generation relative to earnings. The company maintains a strong cash flow position, despite recent growth challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	692.21M	650.97M	579.00M	524.46M	485.64M	436.19M
Gross Profit	637.91M	618.70M	555.61M	526.96M	470.82M	374.10M
EBITDA	529.50M	512.24M	456.46M	421.34M	339.75M	252.42M
Net Income	380.88M	360.11M	322.11M	292.90M	231.13M	171.57M
Balance Sheet
Total Assets	3.73B	3.35B	2.94B	2.52B	2.45B	2.17B
Cash, Cash Equivalents and Short-Term Investments	505.83M	54.22M	95.35M	42.25M	73.48M	121.38M
Total Debt	416.55M	415.15M	397.60M	396.05M	394.62M	393.30M
Total Liabilities	1.21B	1.13B	1.01B	902.30M	884.79M	797.08M
Stockholders Equity	2.51B	2.22B	1.93B	1.61B	1.57B	1.37B
Cash Flow
Free Cash Flow	386.85M	386.70M	333.31M	302.82M	313.48M	240.44M
Operating Cash Flow	393.38M	393.60M	342.68M	313.39M	325.72M	252.60M
Investing Cash Flow	-284.94M	-339.29M	-200.00M	-289.79M	-374.18M	-629.55M
Financing Cash Flow	-111.32M	-96.70M	-90.42M	-55.83M	-1.83M	462.80M

NMI Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.12
• 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 38.12 is above the 20-day moving average (MA) of 37.18, above the 50-day MA of 37.13, and above the 200-day MA of 37.56, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 78.50 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	82 Outperform	$5.62B	8.94	12.75%	2.10%	2.40%	1.18%
NMIH	79 Outperform	$2.93B	7.97	16.17%	―	8.86%	9.51%
MTG	78 Outperform	$6.35B	9.12	14.40%	1.98%	2.20%	9.90%
ESNT	73 Outperform	$6.10B	9.02	12.35%	1.99%	2.78%	-0.50%
AGO	73 Outperform	$4.15B	11.04	7.06%	1.51%	7.56%	-38.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RDN	66 Neutral	$4.82B	8.87	12.56%	2.87%	-3.68%	3.65%

NMI Holdings Corporate Events

NMI Holdings Inc. Reports Record Q3 Earnings

The recent earnings call for NMI Holdings Inc. showcased a predominantly positive sentiment, highlighting the company’s strong financial performance and growth trajectory. Despite facing challenges such as increased claims expenses and potential macroeconomic risks, the overall tone was optimistic, buoyed by record revenues and effective cost management strategies.

NMI Holdings Reports Steady Q3 2025 Financial Results

NMI Holdings, Inc., operating under the brand National MI, is a private mortgage insurance company based in the United States, providing insurance solutions to protect lenders and investors from borrower defaults, primarily in the housing and mortgage sector.