MGIC Investment (MEX:MTG) Beneish M-Score: -2.29 (As of Jun. 26, 2026)


MEX:MTG MGIC Investment Corp MEX:MTG
77 GF Score
Price MXN457.74
GF Value MXN472.30
Valuation Fairly Valued
! 4 Warning Signs
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What is MGIC Investment Beneish M-Score?

MGIC Investment MEX:MTG 77 Beneish M-Score is -2.29 as of Jun. 26, 2026. GuruFocus rates MEX:MTG with a GF Score™ of 77/100 and a GF Value™ of MXN472.30 (Fairly Valued). The stock has 4 warning signs investors should review. Among 397 Insurance companies, MGIC Investment ranks worse than 73.05% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for MGIC Investment's Beneish M-Score or its related term are showing as below:

MEX:MTG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.54   Med: -2.45   Max: -1.9
Current: -2.29

During the past 13 years, the highest Beneish M-Score of MGIC Investment was -1.90. The lowest was -2.54. And the median was -2.45.

MEX:MTG
77GF Score
MGIC Investment Corp MEX:MTG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

MGIC Investment Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of MGIC Investment for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.165+0.528 * 1+0.404 * 1.0006+0.892 * 0.8676+0.115 * 1.9318
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.017423-0.327 * 0.9884
=-2.42

* 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.

This Year (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was MXN2,298 Mil.
Revenue was MXN21,852 Mil.
Gross Profit was MXN21,852 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN119,549 Mil.
Property, Plant and Equipment(Net PPE) was MXN584 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN125 Mil.
Selling, General, & Admin. Expense(SGA) was MXN0 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN11,634 Mil.
Net Income was MXN13,294 Mil.
Gross Profit was MXN22 Mil.
Cash Flow from Operations was MXN15,355 Mil.
 Total Receivables was MXN2,274 Mil.
Revenue was MXN25,188 Mil.
Gross Profit was MXN25,188 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN136,547 Mil.
Property, Plant and Equipment(Net PPE) was MXN744 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN384 Mil.
Selling, General, & Admin. Expense(SGA) was MXN0 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN13,445 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2297.977 / 21852.366) / (2273.563 / 25188.075)
=0.105159 / 0.090263
=1.165

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(25188.075 / 25188.075) / (21852.366 / 21852.366)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 584.357) / 119548.593) / (1 - (0 + 744.111) / 136547.169)
=0.995112 / 0.994551
=1.0006

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=21852.366 / 25188.075
=0.8676

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(384.496 / (384.496 + 744.111)) / (125.122 / (125.122 + 584.357))
=0.340682 / 0.176358
=1.9318

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 21852.366) / (0 / 25188.075)
=0 / 0
=1

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((11634.167 + 0) / 119548.593) / ((13444.982 + 0) / 136547.169)
=0.097317 / 0.098464
=0.9884

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(13294.455 - 22.183 - 15355.225) / 119548.593
=-0.017423

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

MGIC Investment has a M-score of -2.42 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.29 mean?
MGIC Investment (MEX:MTG) has a Beneish M-Score of -2.29 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on MGIC Investment and its competitors. According to the industry distribution chart, MGIC Investment ranks #290 out of 397 companies in the Insurance industry, placing it in the top 73%.
Is MGIC Investment's Beneish M-Score too high?
MGIC Investment's current Beneish M-Score is -2.29. Based on the distribution chart, MGIC Investment ranks #290 out of 397 companies in the Insurance industry, which is below the industry midpoint. Overall, MGIC Investment has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does MGIC Investment's Beneish M-Score compare to ESNT and ACT?
According to the Insurance industry distribution chart, MGIC Investment ranks #290 out of 397 companies for Beneish M-Score. This places MGIC Investment in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on MGIC Investment and its competitors. MGIC Investment's current Beneish M-Score is -2.29. 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 (MEX:MTG) is currently considered Fairly Valued. The stock's GF Value™ is MXN472.30, compared to a current price of MXN457.74 — trading 3.1% below its estimated fair value. The current Beneish M-Score is -2.29. MGIC Investment's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For MGIC Investment (MEX:MTG), the current Beneish M-Score is -2.29 as of Jun. 26, 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 (MEX:MTG) Overvalued in 2026?

Based on GuruFocus' analysis, MGIC Investment stock appears to be undervalued. The current stock price of MXN457.74 is trading 3.1% below its estimated GF Value™ of MXN472.30. GuruFocus considers MGIC Investment to be Fairly Valued.

Key valuation signals for MEX:MTG:

  • Beneish M-Score: -2.29
  • GF Value™: MXN472.30 vs. price of MXN457.74 (3.1% below fair value)
  • GF Score™: 77/100 with 4 warning signs

No single metric tells the full story. See the MEX:MTG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

MGIC Investment Business Description

Other Exchanges MTG:USA
Address 250 E. Kilbourn Avenue, MGIC Plaza, Milwaukee, WI, USA, 53202
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.
77GF Score

Get the complete analysis for MEX:MTG

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN457.74
Price
MXN472.30
GF Value