MTG NYSE Russell 1000 Earnings call
MGIC Investment Corporation (MTG) · Q2 2026 results and valuation
Share price: $27.87 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 10.2% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+10.2%
Net income vs Q1 2026
Net income 182.1M vs 165.3M
Revenue −0.6%
Against the same quarter last year (Q2 2025) it is −5.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Restrained
Less upbeat than 74% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Figure
MTG wrote $18 billion of new insurance in the second quarter.
Valuation
Is MGIC Investment Corporation undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 1.1% growth a year (3-year revenue growth), the model's fair value is $44.61 a share — the stock trades 38% below it. Today's price assumes −5.5% growth a year.
Current price
$27.87
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-5.5% for 10 yrs
Fair value / share
$44.61
Buy below
$33.46
Price vs fair value
Undervalued 38%
Price vs buy-below price
Undervalued 17%
Read between the lines
-
Fading
Insurance in force is holding flat, aligned with expectations entering the year.
Source quote
“Overall, we continue to expect our insurance in force to remain relatively flat in 2026. Both insurance in force and annual persistency are aligned with our expectations entering the year. If mortgage rates were to decline more than currently predicted, we would expect the size of the MI market to benefit from increased refinance activity, although the growth in insurance in force would be offset by lower persistency, which is consistent with what...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“loss volatility and stress scenarios Reinsurance agreements with a panel of highly rated reinsurers reduce loss volatility in stress scenarios while providing capital diversification and flexibility at attractive costs.”
“Market conditions have constrained insurance in force growth in recent years, and against that backdrop, our capital return activity reflects continued strong mortgage credit performance and our robust financial position.”
“So, you know, we have done up to, say, 40% quota shares, the excess of loss deals that we have done in recent years have allocated about 30% of the...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 295.4M | 297.1M | −0.6% | 304.2M | −2.9% |
| Operating income | 229.9M | 206.8M | +11.2% | 246.1M | −6.6% |
| Net income | 182.1M | 165.3M | +10.2% | 192.5M | −5.4% |
| EPS | 0.86 | 0.76 | +13.2% | 0.81 | +6.2% |
| P/E today 8.5 | 8.8 | 8.3 | +0.5 | 9.1 | −0.3 |
Topics
Most discussed now
- New This long term approach has supported MGIC Investment's competitive position driven strong business performance, and generated meaningful…
- MGIC Investment posted on its website a quarterly supplement that contains information pertaining to its primary risk in force,...
- MGIC Investment expects the increase was due to a slightly larger mortgage origination market, driven by seasonal growth in the purchase...
- This favorable development primarily reflects better than expected cure activity on delinquency notices received in 2025.
- For new delinquency notices received in the second quarter, MGIC Investment continues to apply its initial claim rate assumption of 7.5%.
Faded since Q1 2026
- Dropped If that continues, MGIC Investment would expect gradual upward movement in the delinquency rate if the 2020–2023 books persist as they...
- Fading The increase was driven by higher refinance activity as well as what MGIC Investment expects was a modestly larger purchase market.
- Fading Both the number of new notices and the delinquency rate remain low by historical standards.
- Fading Last week, FHFA announced advances in credit score modernization, and that the GSEs are moving forward with VantageScore 4.0 and...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K