Fundamentals snapshot
NMIH · NGM · Financial Services · Insurance - Specialty
Current price
$42.67
52-week range
$34.84 - $46.74
Market cap
$3.21B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $264.88M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
NMI Holdings, Inc. (NMIH) provides insurance that protects mortgage lenders if a homeowner can't make their payments, mostly earning money from premiums charged for this insurance. This insurance is important because it allows more people to buy homes by making it less risky for banks to lend money, especially for those with smaller down payments. The company's income primarily comes from these recurring revenue streams (income that is expected to continue over time) from the insurance policies it sells.
NMI Holdings was founded in 2011, emerging in the wake of the 2008 financial crisis. The founders, experienced in the mortgage insurance industry, aimed to build a new private mortgage insurer that addressed weaknesses exposed in the existing market. After going public in 2013, the company began writing mortgage insurance, distinguishing itself by not carrying pre-crisis legacy assets. It has since grown organically, focusing on providing essential insurance services in the U.S. residential mortgage market.
NMI Holdings, through its subsidiary National MI, provides private mortgage guaranty insurance. This insurance acts as a safety net for lenders and investors, protecting them against financial losses if a homeowner defaults on their mortgage payments. Essentially, it allows people to buy homes with lower down payments by assuring lenders that a portion of the loan is covered. The company also offers outsourced loan review services to help mortgage originators assess loan quality.
This is the core business of NMI Holdings. When a homebuyer makes a down payment of less than 20% of the home's price, lenders often require mortgage insurance to mitigate their risk. NMI provides this primary mortgage insurance, which is typically paid for by the borrower or the lender. It protects the lender against a specified portion of loss if the borrower stops making payments and the home has to be sold for less than what is owed. This service is crucial for enabling more people to access homeownership by making it easier for lenders to approve loans with lower down payments.
NMI Holdings' management is focused on profitable and risk-disciplined growth within the U.S. conventional mortgage market. Their strategy emphasizes maintaining a strong capital cushion to meet regulatory requirements and ensure lender confidence, even during economic downturns. They also leverage reinsurance arrangements to manage risk and improve financial outcomes. The company aims to grow its insured portfolio by focusing on high-quality credit and building strong relationships with mortgage lenders, rather than simply maximizing the volume of policies written.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $264.9M. Interest coverage 18.6x.
NMI Holdings, Inc.'s profit covers its interest bill about 18.6 times over. which is stronger than most peers shown here.
Total debt $426.15M Interest coverage 18.55x This is the baseline the peer rows are being compared against.
Total debt $1.34B Interest coverage 12.67x -32% vs NMIH Carries about 1.5x less debt cushion than NMIH.
Total debt $646.87M Interest coverage 27.08x +46% vs NMIH Carries about 1.5x more debt cushion than NMIH.
Total debt $495.97M Interest coverage 26.14x +41% vs NMIH Carries about 1.4x more debt cushion than NMIH.
Total debt $745.23M Interest coverage 18.19x -2% vs NMIH Has roughly the same debt cushion as NMIH.
Total debt $4.29B Interest coverage 34.64x +87% vs NMIH Carries about 1.9x more debt cushion than NMIH.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know