Is NMI Holdings Stock a Good Investment?
NMI Holdings Investment Advice | NMIH |
- Examine NMI Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research NMI Holdings' leadership team and their track record. Good management can help NMI Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Commercial & Residential Mortgage Finance space and any emerging trends that could impact NMI Holdings' business and its evolving consumer preferences.
- Compare NMI Holdings' performance and market position to its competitors. Analyze how NMI Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if NMI Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about NMI Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in NMI Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NMI Holdings is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine NMI Holdings Stock
Researching NMI Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.44. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. NMI Holdings has Price/Earnings To Growth (PEG) ratio of 1.66. The entity had not issued any dividends in recent years.
To determine if NMI Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding NMI Holdings' research are outlined below:
| NMI Holdings generated a negative expected return over the last 90 days | |
| NMI Holdings is unlikely to experience financial distress in the next 2 years | |
| NMI Holdings currently holds 409 M in liabilities with Debt to Equity (D/E) ratio of 0.27, which may suggest the company is not taking enough advantage from borrowing. NMI Holdings has a current ratio of 0.89, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about NMI Holdings' use of debt, we should always consider it together with its cash and equity. | |
| Over 99.0% of NMI Holdings shares are owned by institutional investors | |
| Latest headline from zacks.com: Why NMI Holdings is a Top Value Stock for the Long-Term |
NMI Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in NMI Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to NMI Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact NMI Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises NMI Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-08-01 | 2017-06-30 | 0.11 | 0.13 | 0.02 | 18 | ||
2017-05-04 | 2017-03-31 | 0.13 | 0.11 | -0.02 | 15 | ||
2017-02-15 | 2016-12-31 | 0.14 | 0.12 | -0.02 | 14 | ||
2018-02-15 | 2017-12-31 | 0.17 | 0.2 | 0.03 | 17 | ||
2016-11-01 | 2016-09-30 | 0.07 | 0.1 | 0.03 | 42 | ||
2015-08-04 | 2015-06-30 | -0.15 | -0.18 | -0.03 | 20 | ||
2015-02-19 | 2014-12-31 | -0.2 | -0.17 | 0.03 | 15 | ||
2014-08-07 | 2014-06-30 | -0.25 | -0.22 | 0.03 | 12 |
Know NMI Holdings' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as NMI Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NMI Holdings backward and forwards among themselves. NMI Holdings' institutional investor refers to the entity that pools money to purchase NMI Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Fmr Inc | 2024-09-30 | 1.5 M | Frontier Capital Management Co Inc | 2024-09-30 | 1.3 M | Wellington Management Company Llp | 2024-06-30 | 1.3 M | Nuveen Asset Management, Llc | 2024-06-30 | 1.3 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.1 M | Millennium Management Llc | 2024-06-30 | 1 M | Donald Smith & Co Inc | 2024-09-30 | 969.9 K | Ameriprise Financial Inc | 2024-06-30 | 961.1 K | Capital World Investors | 2024-09-30 | 950 K | Blackrock Inc | 2024-06-30 | 13.4 M | Vanguard Group Inc | 2024-09-30 | 7.1 M |
NMI Holdings' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.17 B.Market Cap |
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NMI Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.11 | 0.12 | |
| Return On Capital Employed | 0.20 | 0.21 | |
| Return On Assets | 0.11 | 0.12 | |
| Return On Equity | 0.17 | 0.18 |
Determining NMI Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if NMI Holdings is a good buy. For example, gross profit margin measures NMI Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of NMI Holdings' profitability and make more informed investment decisions.
Evaluate NMI Holdings' management efficiency
NMI Holdings has return on total asset (ROA) of 0.1019 % which means that it generated a profit of $0.1019 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1793 %, meaning that it created $0.1793 on every $100 dollars invested by stockholders. NMI Holdings' management efficiency ratios could be used to measure how well NMI Holdings manages its routine affairs as well as how well it operates its assets and liabilities. The NMI Holdings' current Return On Tangible Assets is estimated to increase to 0.12. The NMI Holdings' current Return On Capital Employed is estimated to increase to 0.21. As of now, NMI Holdings' Other Current Assets are increasing as compared to previous years. The NMI Holdings' current Total Current Assets is estimated to increase to about 1 B, while Non Currrent Assets Other are projected to decrease to (124.9 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 23.37 | 24.54 | |
| Tangible Book Value Per Share | 23.33 | 24.49 | |
| Enterprise Value Over EBITDA | 6.02 | 6.32 | |
| Price Book Value Ratio | 1.27 | 1.14 | |
| Enterprise Value Multiple | 6.02 | 6.32 | |
| Price Fair Value | 1.27 | 1.14 | |
| Enterprise Value | 1.9 B | 2 B |
The operational strategies employed by NMI Holdings management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Beta 1.131 |
Basic technical analysis of NMI Stock
As of the 28th of November, NMI Holdings secures the risk adjusted performance of 0.011, and Mean Deviation of 1.09. In respect to fundamental indicators, the technical analysis model lets you check practical technical drivers of NMI Holdings, as well as the relationship between them.NMI Holdings' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific NMI Holdings insiders, such as employees or executives, is commonly permitted as long as it does not rely on NMI Holdings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases NMI Holdings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
NMI Holdings' Outstanding Corporate Bonds
NMI Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. NMI Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most NMI bonds can be classified according to their maturity, which is the date when NMI Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand NMI Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing NMI Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.011 | |||
| Market Risk Adjusted Performance | 0.0126 | |||
| Mean Deviation | 1.09 | |||
| Semi Deviation | 1.71 | |||
| Downside Deviation | 1.77 | |||
| Coefficient Of Variation | 13110.88 | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.52 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.24) | |||
| Sortino Ratio | (0.06) | |||
| Treynor Ratio | 0.0026 | |||
| Maximum Drawdown | 9.75 | |||
| Value At Risk | (2.55) | |||
| Potential Upside | 2.37 | |||
| Downside Variance | 3.12 | |||
| Semi Variance | 2.91 | |||
| Expected Short fall | (1.07) | |||
| Skewness | (0.48) | |||
| Kurtosis | 2.71 |
| Risk Adjusted Performance | 0.011 | |||
| Market Risk Adjusted Performance | 0.0126 | |||
| Mean Deviation | 1.09 | |||
| Semi Deviation | 1.71 | |||
| Downside Deviation | 1.77 | |||
| Coefficient Of Variation | 13110.88 | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.52 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.24) | |||
| Sortino Ratio | (0.06) | |||
| Treynor Ratio | 0.0026 | |||
| Maximum Drawdown | 9.75 | |||
| Value At Risk | (2.55) | |||
| Potential Upside | 2.37 | |||
| Downside Variance | 3.12 | |||
| Semi Variance | 2.91 | |||
| Expected Short fall | (1.07) | |||
| Skewness | (0.48) | |||
| Kurtosis | 2.71 |
Consider NMI Holdings' intraday indicators
NMI Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of NMI Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
NMI Holdings Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 20th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
NMI Stock media impact
Far too much social signal, news, headlines, and media speculation about NMI Holdings that are available to investors today. That information is available publicly through NMI media outlets and privately through word of mouth or via NMI internal channels. However, regardless of the origin, that massive amount of NMI data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of NMI Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of NMI Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to NMI Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NMI Holdings alpha.
NMI Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards NMI Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
NMI Holdings Corporate Management
| William JD | Chief VP | Profile | |
| Norman Fitzgerald | Executive Officer | Profile | |
| Robert Smith | Executive Officer | Profile | |
| Andrew Greenberg | Senior Finance | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NMI Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more detail on how to invest in NMI Stock please use our How to Invest in NMI Holdings guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NMI Holdings. If investors know NMI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NMI Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.15 | Earnings Share 4.37 | Revenue Per Share 7.914 | Quarterly Revenue Growth 0.121 | Return On Assets 0.1019 |
The market value of NMI Holdings is measured differently than its book value, which is the value of NMI that is recorded on the company's balance sheet. Investors also form their own opinion of NMI Holdings' value that differs from its market value or its book value, called intrinsic value, which is NMI Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NMI Holdings' market value can be influenced by many factors that don't directly affect NMI Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between NMI Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if NMI Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NMI Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.