MGIC InvestmentMTG +2.11%85 ROA % is 10.13% as of Mar. 2026, which is 9% below its 10-year median of 11.19. GuruFocus rates MTG with a GF Score™ of 85/100 and a GF Value™ of $28.23 (Fairly Valued). The stock has 2 warning signs investors should review. Among 508 Insurance companies, MGIC Investment ranks better than 94.29% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MGIC Investment's annualizedNet Income for the quarter that ended in Mar. 2026 was $661 Mil.
MGIC Investment's average Total Assets over the quarter that ended in Mar. 2026 was $6,528 Mil. Therefore, MGIC Investment's annualized ROA % for the quarter that ended in Mar. 2026 was 10.13%.
The historical rank and industry rank for MGIC Investment's ROA % or its related term are showing as below:
MTG'
s ROA % Range Over the Past 10 Years
Min: 5.9 Med: 11.19 Max: 12.78
Current: 10.96
During the past 13 years, MGIC Investment's highest ROA % was 12.78%. The lowest was 5.90%. And the median was 11.19%.
MTG's ROA % is ranked better than 94.29% of 508
companies
in the Insurance industry
Industry Median: 2.7
vs MTG: 10.96
MGIC Investment (NYSE:MTG) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
MGIC Investment ROA % Related Terms
MGIC Investment ROA % Historical Data
* Premium members only.
The historical data trend for MGIC Investment's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, MGIC Investment's ROA % distribution charts can be found below:
* The bar in red indicates where MGIC Investment's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
MGIC Investment (MTG) has a ROA % of 10.13% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on MGIC Investment and its competitors. This is near median its historical median of 11.19. Over the past decade, MGIC Investment's ROA % has ranged from 5.90 to 12.78. According to the industry distribution chart, MGIC Investment ranks #29 out of 508 companies in the Insurance industry, placing it in the top 5.7%.
Is MGIC Investment's ROA % too high?
MGIC Investment's current ROA % of 10.13% is near median its 10-year median of 11.19. Over the past 10 years, this metric has ranged from a low of 5.90 to a high of 12.78. The Insurance industry median ROA % is 2.70. MGIC Investment's value of 10.13% is 275.2% above this industry median. Based on the distribution chart, MGIC Investment ranks #29 out of 508 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 ROA % compare to ESNT and ACT?
According to the Insurance industry distribution chart, MGIC Investment ranks #29 out of 508 companies for ROA %. This places MGIC Investment in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 2.70. MGIC Investment's value of 10.13% is 275.2% above this benchmark. Historically, MGIC Investment's own ROA % has ranged from 5.90 to 12.78 over the past decade. While the company's 10-year median is 11.19 vs. the industry median of 2.70, 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 ROA % for an Insurance company?
The median ROA % among Insurance companies is 2.70, based on 508 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGIC Investment's current ROA % of 10.13% is 275.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on MGIC Investment and its competitors. For the Insurance industry, the median ROA % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGIC Investment's current ROA % is 10.13%, which is near median its own 10-year median of 11.19. 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 $27.05 — trading 4.2% below its estimated fair value. The current ROA % is 10.13%, which is near median its 10-year median of 11.19 and 275.2% above the Insurance industry median of 2.70. MGIC Investment's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For MGIC Investment (MTG), the current ROA % is 10.13% 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 $27.05 is trading 4.2% below its estimated GF Value™ of $28.23.
GuruFocus considers MGIC Investment to be Fairly Valued.
Key valuation signals for MTG:
ROA %: 10.13% (near median its 10-year median of 11.19)
GF Value™: $28.23 vs. price of $27.05 (4.2% below fair value)
Industry Position: 275.2% above the Insurance median (#29 of 508)
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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