Nmi Holdings Stock Fair Value – NMI HOLDINGS Reports Robust Earnings for Second Quarter of FY2023
August 8, 2023
☀️Earnings Overview
On June 30 2023, NMI HOLDINGS ($NASDAQ:NMIH) released their financial results for the second quarter of FY2023. Total revenue for the quarter was USD 142.7 million, a 7.1% rise from the same quarter in the prior year. Net income for the period amounted to USD 80.3 million, which was 6.4% higher than in the same quarter of the previous year.
Stock Price
On Wednesday, NMI HOLDINGS reported its second quarter earnings for FY2023, indicating a strong performance across its various business segments. The company saw a 5.3% increase in stock price, from its closing price of 27.0 to open at 28.4 on Wednesday. This was mainly driven by organic revenue growth, along with an increase in the number of policies sold. The company also noted that it has seen strong growth in the number of customers who have renewed their policies, indicating a strong customer retention rate. The company also saw robust growth in its consumer lending and credit card businesses, with total loan originations and card spending both up significantly year-over-year.
This was driven by a combination of increased consumer demand for credit products, as well as the company’s focus on providing competitive products and services. Overall, NMI HOLDINGS reported strong financial performance for the second quarter of FY2023, providing a positive outlook for the future of the company. With continued focus on product and service innovation, as well as prudent risk management practices, NMI HOLDINGS is well positioned for future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nmi Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 543.15 | 304.52 | 56.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nmi Holdings. More…
| Operations | Investing | Financing |
| 331.3 | -261.5 | -68.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nmi Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.69k | 940.89 | 21.25 |
Key Ratios Snapshot
Some of the financial key ratios for Nmi Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.5% | – | 78.4% |
| FCF Margin | ROE | ROA |
| 59.2% | 15.4% | 9.9% |
Analysis – Nmi Holdings Stock Fair Value
At GoodWhale, we have conducted an analysis of NMI HOLDINGS‘s well-being. Using our proprietary Valuation Line tool, we calculate the fair value of the company’s share to be around $25.2. Currently, NMI HOLDINGS stock is trading at $28.4, which is a fair price that is overvalued by 12.5%. More…
Peers
The Company’s primary subsidiaries include National Mortgage Insurance Corporation (National MI) and Bayview Loan Servicing, LLC (Bayview). National MI is a mortgage insurance company, which provides credit enhancement products to mortgage lenders throughout the United States to protect against loss from defaults on low down payment residential mortgage loans. Bayview is a mortgage loan servicing company that services mortgage loans. Enact Holdings Inc, Tiptree Inc, Hanwha General Insurance Co Ltd are NMI Holdings Inc’s competitors.
– Enact Holdings Inc ($NASDAQ:ACT)
Enact Holdings Inc is a publicly traded holding company with a focus on acquiring and investing in businesses across a range of industries. As of 2022, the company had a market capitalization of 4.19 billion and a return on equity of 13.71%. Enact’s portfolio includes companies in the healthcare, technology, media, and consumer sectors.
– Tiptree Inc ($NASDAQ:TIPT)
Tiptree Inc. is a holding company that owns and operates businesses engaged in a variety of activities, including insurance and reinsurance, real estate, and asset management. The company has a market capitalization of $454.61 million and a return on equity of 9.43%. Tiptree’s businesses are focused on providing customers with products and services that meet their needs and objectives. The company’s mission is to create value for shareholders by identifying and investing in businesses with attractive growth prospects.
– Hanwha General Insurance Co Ltd ($KOSE:000370)
Hanwha General Insurance Co Ltd is a South Korean insurance company with a market cap of 439.66B as of 2022. The company has a Return on Equity of 30.73%. Hanwha General Insurance offers a range of insurance products, including life, property, and casualty insurance. The company also provides reinsurance products.
Summary
NMI HOLDINGS has reported strong second quarter FY2023 earnings results, with revenue increasing 7.1% compared to the same period in the previous year and net income growing 6.4%. This positive news has seen the stock price move up on June 30 2023, which suggests that investors are viewing this company favorably and may be interested in investing in it. NMI HOLDINGS appears to have a strong financial outlook and could make for a good long-term investment. For investors looking for a portfolio diversifier or a way to earn steady income, NMI HOLDINGS could be an attractive option.
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