NMI Holdings, Inc.
$35.42
-0.31%NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. NMI Holdings, Inc. was incorporated in 2011 and is headquartered in Emeryville, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 7.1).
Valuation inputs: P/E 7.1, earnings yield +14.1%, momentum -0.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +15.0%, ROIC +11.7%).
Profitability stack: net margin +55.1%, ROE +15.0%, ROIC +11.7%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +32.5%, momentum -0.3%, net margin +55.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
NMI Holdings, Inc. Market vs Earnings Trajectory
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NMI Holdings, Inc. Fair Value Envelope
NMI Holdings, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
NMI Holdings, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
NMI Holdings, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Conservative with tight liquidity: Low debt is positive, but current ratio warrants attention. Consider whether the company is efficiently deploying its equity capital.
NMI Holdings, Inc. Street Expectations Map
Wall Street analysts project that NMIH stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 45.33, with estimates ranging from a low of 44.00 to a high of 46.00.
The consensus 1-year price target stands at 45.33, with estimates ranging from a low of 44.00 to a high of 46.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
NMI Holdings, Inc. Insider Positioning
During the last 12 months, insiders have sold $10.58M worth of NMIH shares, with no buying activity reported.
3 Months
0
0.00
58.5K
2.16M
-2.2M
-$2.16M
3-6 Months
0
0.00
132.5K
5.25M
-5.3M
-$5.25M
6-9 Months
0
0.00
60.1K
2.32M
-2.3M
-$2.32M
9-12 Months
0
0.00
21.5K
852.28K
-852K
-$852K
Top Buyers
No buying activity
Top Sellers
Shuster Bradley M
Director, Officer: Executive Chairman
$6.67M
Scheid Steven
Director
$1.57M
Fitzgerald Norman Peter
Officer: Evp, Chief Sales Officer
$899K
Embler Michael J
Director
$738K
Yousaf Mohammad Nawaz
Officer: Evp, Chief Of Ops And Tech
$638K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $10.58M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
NMIH has not reported any dividend yield values in the available annual periods.
nmih Dividend History
Learning Layer
Related Guides
Build conviction on NMIH by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.