MGIC InvestmentMTG +1.15%85 Interest Coverage is 24.24 as of Mar. 2026, which is 42% above its 10-year median of 17.02. GuruFocus rates MTG with a GF Score™ of 85/100 and a GF Value™ of $28.23 (Fairly Valued). The stock has 4 warning signs investors should review. Among 351 Insurance companies, MGIC Investment ranks better than 61.25% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. MGIC Investment's
EBIT
for the
three
months ended in Mar. 2026 was $216 Mil. MGIC Investment's Interest Expense for the
three
months ended in Mar. 2026 was $-9 Mil.
MGIC Investment's interest coverage for the quarter that ended in Mar. 2026 was 24.24.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for MGIC Investment's Interest Coverage or its related term are showing as below:
MTG'
s Interest Coverage Range Over the Past 10 Years
Min: 10.08 Med: 17.02 Max: 28.21
Current: 26.3
MTG's Interest Coverage is ranked better than 61.25% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs MTG: 26.30
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
MGIC Investment Interest Coverage Related Terms
MGIC Investment Interest Coverage Historical Data
* Premium members only.
The historical data trend for MGIC Investment's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MTG vs ESNT, ACT, RDN: Interest Coverage Comparison
For the Insurance - Specialty subindustry, MGIC Investment's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MGIC Investment Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, MGIC Investment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where MGIC Investment's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MGIC Investment (MTG) has a Interest Coverage of 24.24 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MGIC Investment and its competitors. This is 42% above median its historical median of 17.02. Over the past decade, MGIC Investment's Interest Coverage has ranged from 10.08 to 28.21. According to the industry distribution chart, MGIC Investment ranks #136 out of 351 companies in the Insurance industry, placing it in the top 38.7%.
Is MGIC Investment's Interest Coverage too high?
MGIC Investment's current Interest Coverage of 24.24 is 42% above median its 10-year median of 17.02. Over the past 10 years, this metric has ranged from a low of 10.08 to a high of 28.21. The Insurance industry median Interest Coverage is 16.23. MGIC Investment's value of 24.24 is 49.4% above this industry median. Based on the distribution chart, MGIC Investment ranks #136 out of 351 companies in the Insurance industry, which is above the industry midpoint. Overall, MGIC Investment has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does MGIC Investment's Interest Coverage compare to ESNT and ACT?
According to the Insurance industry distribution chart, MGIC Investment ranks #136 out of 351 companies for Interest Coverage. This puts MGIC Investment in the upper half of its industry. The industry median Interest Coverage is 16.23. MGIC Investment's value of 24.24 is 49.4% above this benchmark. Historically, MGIC Investment's own Interest Coverage has ranged from 10.08 to 28.21 over the past decade. While the company's 10-year median is 17.02 vs. the industry median of 16.23, MGIC Investment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGIC Investment's current Interest Coverage of 24.24 is 49.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MGIC Investment and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGIC Investment's current Interest Coverage is 24.24, which is 42% above median its own 10-year median of 17.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MGIC Investment stock overvalued right now?
Based on GuruFocus' analysis, MGIC Investment (MTG) is currently considered Fairly Valued. The stock's GF Value™ is $28.23, compared to a current price of $27.36 — trading 3.1% below its estimated fair value. The current Interest Coverage is 24.24, which is 42% above median its 10-year median of 17.02 and 49.4% above the Insurance industry median of 16.23. MGIC Investment's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For MGIC Investment (MTG), the current Interest Coverage is 24.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MGIC Investment (MTG) Overvalued in 2026?
Based on GuruFocus' analysis, MGIC Investment stock appears to be undervalued.
The current stock price of $27.36 is trading 3.1% below its estimated GF Value™ of $28.23.
GuruFocus considers MGIC Investment to be Fairly Valued.
Key valuation signals for MTG:
Interest Coverage: 24.24 (42% above median its 10-year median of 17.02)
GF Value™: $28.23 vs. price of $27.36 (3.1% below fair value)
Industry Position: 49.4% above the Insurance median (#136 of 351)
No single metric tells the full story. See the MTG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MGIC Investment Corp provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services. The insurance premiums that these customers pay for the protection account for close to the majority of the company's total revenue. Investment income accounts for the remaining revenue. The company sells its insurance products in all states of the United States and in Puerto Rico. Its greatest exposure is in California, Florida, Texas, Pennsylvania, Ohio, Illinois, Virginia, North Carolina, Georgia, and New York.
85GF Score
Get the complete analysis for MTG
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