MGIC InvestmentMTG +1.15%85 Return-on-Tangible-Equity is 12.98% as of Mar. 2026, which is 10% below its 10-year median of 14.50. 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 497 Insurance companies, MGIC Investment ranks better than 51.71% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. MGIC Investment's annualized net income for the quarter that ended in Mar. 2026 was $661 Mil. MGIC Investment's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $5,092 Mil. Therefore, MGIC Investment's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.98%.
The historical rank and industry rank for MGIC Investment's Return-on-Tangible-Equity or its related term are showing as below:
MTG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.9 Med: 14.5 Max: 19.89
Current: 14
During the past 13 years, MGIC Investment's highest Return-on-Tangible-Equity was 19.89%. The lowest was 9.90%. And the median was 14.50%.
MTG's Return-on-Tangible-Equity is ranked better than 51.71% of 497
companies
in the Insurance industry
Industry Median: 13.54
vs MTG: 14.00
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
MGIC Investment Return-on-Tangible-Equity Related Terms
MGIC Investment Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for MGIC Investment's Return-on-Tangible-Equity 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.
MTG vs ESNT, ACT, RDN: Return-on-Tangible-Equity Comparison
For the Insurance - Specialty subindustry, MGIC Investment's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, MGIC Investment's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where MGIC Investment's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.98% mean?
MGIC Investment (MTG) has a Return-on-Tangible-Equity of 12.98% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MGIC Investment and its competitors. This is 10% below median its historical median of 14.50. Over the past decade, MGIC Investment's Return-on-Tangible-Equity has ranged from 9.90 to 19.89. According to the industry distribution chart, MGIC Investment ranks #240 out of 497 companies in the Insurance industry, placing it in the top 48.3%.
Is MGIC Investment's Return-on-Tangible-Equity too high?
MGIC Investment's current Return-on-Tangible-Equity of 12.98% is 10% below median its 10-year median of 14.50. Over the past 10 years, this metric has ranged from a low of 9.90 to a high of 19.89. The Insurance industry median Return-on-Tangible-Equity is 13.54. MGIC Investment's value of 12.98% is 4.1% below this industry median. Based on the distribution chart, MGIC Investment ranks #240 out of 497 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 Return-on-Tangible-Equity compare to ESNT and ACT?
According to the Insurance industry distribution chart, MGIC Investment ranks #240 out of 497 companies for Return-on-Tangible-Equity. This puts MGIC Investment in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.54. MGIC Investment's value of 12.98% is 4.1% below this benchmark. Historically, MGIC Investment's own Return-on-Tangible-Equity has ranged from 9.90 to 19.89 over the past decade. While the company's 10-year median is 14.50 vs. the industry median of 13.54, MGIC Investment has consistently been below 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.54, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGIC Investment's current Return-on-Tangible-Equity of 12.98% is 4.1% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MGIC Investment and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGIC Investment's current Return-on-Tangible-Equity is 12.98%, which is 10% below median its own 10-year median of 14.50. 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 Return-on-Tangible-Equity is 12.98%, which is 10% below median its 10-year median of 14.50 and 4.1% below the Insurance industry median of 13.54. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For MGIC Investment (MTG), the current Return-on-Tangible-Equity is 12.98% 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:
Return-on-Tangible-Equity: 12.98% (10% below median its 10-year median of 14.50)
GF Value™: $28.23 vs. price of $27.36 (3.1% below fair value)
Industry Position: 4.1% below the Insurance median (#240 of 497)
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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