MGIC InvestmentMTG +1.15%85 Pretax Margin % is 69.62% as of Mar. 2026, which is 6% below its 10-year median of 74.35. 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 501 Insurance companies, MGIC Investment ranks better than 97.8% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
MGIC Investment Pretax Margin % Related Terms
MGIC Investment Pretax Margin % Historical Data
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The historical data trend for MGIC Investment's Pretax Margin % 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.
For the Insurance - Specialty subindustry, MGIC Investment's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, MGIC Investment's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where MGIC Investment's Pretax Margin % falls into.
* 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 Pretax Margin % of 69.62% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on MGIC Investment and its competitors. This is near median its historical median of 74.35. Over the past decade, MGIC Investment's Pretax Margin % has ranged from 46.64 to 92.94. According to the industry distribution chart, MGIC Investment ranks #11 out of 501 companies in the Insurance industry, placing it in the top 2.2%.
Is MGIC Investment's Pretax Margin % too high?
MGIC Investment's current Pretax Margin % of 69.62% is near median its 10-year median of 74.35. Over the past 10 years, this metric has ranged from a low of 46.64 to a high of 92.94. The Insurance industry median Pretax Margin % is 12.04. MGIC Investment's value of 69.62% is 478.2% above this industry median. Based on the distribution chart, MGIC Investment ranks #11 out of 501 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. 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 Pretax Margin % compare to ESNT and ACT?
According to the Insurance industry distribution chart, MGIC Investment ranks #11 out of 501 companies for Pretax Margin %. This places MGIC Investment in the top 2% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 12.04. MGIC Investment's value of 69.62% is 478.2% above this benchmark. Historically, MGIC Investment's own Pretax Margin % has ranged from 46.64 to 92.94 over the past decade. While the company's 10-year median is 74.35 vs. the industry median of 12.04, 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 Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 12.04, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGIC Investment's current Pretax Margin % of 69.62% is 478.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on MGIC Investment and its competitors. For the Insurance industry, the median Pretax Margin % is 12.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGIC Investment's current Pretax Margin % is 69.62%, which is near median its own 10-year median of 74.35. 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 Pretax Margin % is 69.62%, which is near median its 10-year median of 74.35 and 478.2% above the Insurance industry median of 12.04. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For MGIC Investment (MTG), the current Pretax Margin % is 69.62% 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:
Pretax Margin %: 69.62% (near median its 10-year median of 74.35)
GF Value™: $28.23 vs. price of $27.36 (3.1% below fair value)
Industry Position: 478.2% above the Insurance median (#11 of 501)
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
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