Mbia Inc Stock Fair Value – MBIA INC Reports Second Quarter Earnings Results for FY2023 Ending June 30 2023
August 27, 2023
🌥️Earnings Overview
For the quarter ending June 30 2023, MBIA INC ($NYSE:MBI) reported total revenue of USD 27.0 million, a decline of 25.0% compared to the same period in FY2022. Net income for the quarter was USD -75.0 million, representing an increase from the net loss posted in Q2 of the previous year (-36.0 million).
Stock Price
MBIA INC recently released their second quarter earnings results for the fiscal year ending June 30 2023. On Wednesday, the company’s stock opened at $8.6 and closed at $8.8, resulting in an increase of 1.7% from the prior closing price of $8.6. This increase in stock price shows the growth of the company as more investors are taking interest in its business offerings and services. The earnings achieved by MBIA INC can be attributed to their strong performance in the second quarter.
The success of MBIA INC shows that they have been able to effectively navigate a difficult economic climate and capitalize on new opportunities to expand their businesses. With a strong second quarter performance, the company is well positioned for continued growth and success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mbia Inc. More…
| Total Revenues | Net Income | Net Margin |
| 103 | -247 | -195.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mbia Inc. More…
| Operations | Investing | Financing |
| -728 | 949 | -201 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mbia Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.26k | 4.25k | -19.21 |
Key Ratios Snapshot
Some of the financial key ratios for Mbia Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -30.7% | – | 0.0% |
| FCF Margin | ROE | ROA |
| -706.8% | -0.0% | 0.0% |
Analysis – Mbia Inc Stock Fair Value
At GoodWhale, we have conducted extensive analysis of MBIA INC’s fundamentals to determine the fair value of its share. After careful consideration, our proprietary Valuation Line has indicated that the fair value of an MBIA INC share is approximately $7.7. Despite this, the current market price of the stock is $8.8, which means that the share is being traded at an overvalued price of 14.3%. We believe that this discrepancy between fair value and market price should be taken into account when considering a potential investment in MBIA INC. More…
Peers
MBIA Inc is one of the largest providers of financial guarantees and related services, offering products and services to public finance, structured finance and mortgage markets. It operates in competition with other large financial guarantee companies such as Assured Guaranty Ltd, Menora Mivtachim Holdings Ltd and American Overseas Group Ltd.
– Assured Guaranty Ltd ($NYSE:AGO)
Assured Guaranty Ltd is a holding company that provides credit protection products in the United States and internationally. The company has a market capitalization of 3.72 billion U.S. dollars as of 2022, indicating its strength in the financial markets. It also has a Return on Equity (ROE) of 5.63%, indicating its ability to generate profits from its investments. This is a measure of how efficiently the company is utilizing its shareholders’ equity. Assured Guaranty Ltd’s strong market position and solid ROE make it an attractive investment opportunity for investors.
– Menora Mivtachim Holdings Ltd ($OTCPK:MNRHF)
Menora Mivtachim Holdings Ltd is a leading Israeli financial services provider that specialises in insurance, pensions, investments and savings. As of 2022, the company has a market capitalisation of 1.19 billion US dollars. Menora Mivtachim is able to generate strong returns on its investments due to its high return on equity of 10.96%. This is the result of their focus on delivering superior financial services to their customers, which has enabled them to grow and remain profitable. The company’s commitment to innovation and customer satisfaction have enabled them to become a leader in the Israeli financial services market.
– American Overseas Group Ltd ($OTCPK:AOREF)
American Overseas Group Ltd (AOG) is a Bermuda-based holding company with a market cap of 42.69M. AOG is principally engaged in insurance and reinsurance, as well as other related activities, such as property and casualty insurance services, and asset management and investment services. It has a number of subsidiaries operating in different parts of the world and across a range of industries. AOG’s market cap is an indication of its size and performance in the industry, as it reflects the value of its shares on the stock market.
Summary
MBIA Inc reported second quarter earnings results for FY2023 that indicated a 25.0% drop in total revenue year-over-year, to USD 27.0 million. Net income for the quarter was reported at USD -75.0 million, an increase from the previous year’s figure of USD -36.0 million. Investors should exercise caution when evaluating the company’s financial performance, as the large drop in total revenue and negative net income may be a sign of future poor performance.
While the increase in net income is a positive sign, it is unlikely to be enough to offset the effects of the decrease in total revenue. Careful analysis is needed to determine if the company is a viable investment opportunity.
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