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NMI HoldingsNMIH -0.60%83 3-Year ROIIC % is 7.14 as of Dec. 2025, which is 52% below its 10-year median of 14.93. GuruFocus rates NMIH with a GF Score™ of 83/100 and a GF Value™ of $39.34 (Fairly Valued). The stock has 3 warning signs investors should review. Among 334 Insurance companies, NMI Holdings ranks better than 56.89% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
NMI Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 7.14%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for NMI Holdings's 3-Year ROIIC % or its related term are showing as below:
NMIH's 3-Year ROIIC % is ranked better than 56.89% of 334
companies
in the Insurance industry
Industry Median: 5.275
vs NMIH: 7.14
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
NMI Holdings 3-Year ROIIC % Related Terms
NMI Holdings 3-Year ROIIC % Historical Data
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The historical data trend for NMI Holdings's 3-Year ROIIC % 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, NMI Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
NMI Holdings 3-Year ROIIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, NMI Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where NMI Holdings's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
NMI Holdings (NMIH) has a 3-Year ROIIC % of 7.14 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NMI Holdings and its competitors. This is 52% below median its historical median of 14.93. Over the past decade, NMI Holdings' 3-Year ROIIC % has ranged from 7.14 to 31.27. According to the industry distribution chart, NMI Holdings ranks #144 out of 334 companies in the Insurance industry, placing it in the top 43.1%.
Is NMI Holdings' 3-Year ROIIC % too high?
NMI Holdings' current 3-Year ROIIC % of 7.14 is 52% below median its 10-year median of 14.93. Over the past 10 years, this metric has ranged from a low of 7.14 to a high of 31.27. The Insurance industry median 3-Year ROIIC % is 5.28. NMI Holdings' value of 7.14 is 35.4% above this industry median. Based on the distribution chart, NMI Holdings ranks #144 out of 334 companies in the Insurance industry, which is above the industry midpoint. Overall, NMI Holdings has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NMI Holdings' 3-Year ROIIC % compare to AGO and RDN?
According to the Insurance industry distribution chart, NMI Holdings ranks #144 out of 334 companies for 3-Year ROIIC %. This puts NMI Holdings in the upper half of its industry. The industry median 3-Year ROIIC % is 5.28. NMI Holdings' value of 7.14 is 35.4% above this benchmark. Historically, NMI Holdings' own 3-Year ROIIC % has ranged from 7.14 to 31.27 over the past decade. While the company's 10-year median is 14.93 vs. the industry median of 5.28, NMI Holdings 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 3-Year ROIIC % for an Insurance company?
The median 3-Year ROIIC % among Insurance companies is 5.28, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NMI Holdings's current 3-Year ROIIC % of 7.14 is 35.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NMI Holdings and its competitors. For the Insurance industry, the median 3-Year ROIIC % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NMI Holdings's current 3-Year ROIIC % is 7.14, which is 52% below median its own 10-year median of 14.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NMI Holdings stock overvalued right now?
Based on GuruFocus' analysis, NMI Holdings (NMIH) is currently considered Fairly Valued. The stock's GF Value™ is $39.34, compared to a current price of $41.61 — trading 5.8% above its estimated fair value. The current 3-Year ROIIC % is 7.14, which is 52% below median its 10-year median of 14.93 and 35.4% above the Insurance industry median of 5.28. NMI Holdings' overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For NMI Holdings (NMIH), the current 3-Year ROIIC % is 7.14 as of Dec. 2025. 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 NMI Holdings (NMIH) Overvalued in 2026?
Based on GuruFocus' analysis, NMI Holdings stock appears to be overvalued.
The current stock price of $41.61 is trading 5.8% above its estimated GF Value™ of $39.34.
GuruFocus considers NMI Holdings to be Fairly Valued.
Key valuation signals for NMIH:
3-Year ROIIC %: 7.14 (52% below median its 10-year median of 14.93)
GF Value™: $39.34 vs. price of $41.61 (5.8% above fair value)
Industry Position: 35.4% above the Insurance median (#144 of 334)
No single metric tells the full story. See the NMIH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NMI Holdings Inc through its subsidiaries provides private mortgage guaranty insurance. The company offers mortgage insurance, reinsurance on loans, and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, Internet-sourced lenders, and other non-bank lenders. It protects lenders and investors from default-related losses on a portion of the unpaid principal balance of a covered mortgage.
83GF Score
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