Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
MGIC Investment's 5-Year RORE % for the quarter that ended in Mar. 2026 was 10.54%.
The industry rank for MGIC Investment's 5-Year RORE % or its related term are showing as below:
MTG's 5-Year RORE % is ranked worse than 51.89% of 449
companies
in the Insurance industry
Industry Median: 11.54
vs MTG: 10.54
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
MGIC Investment 5-Year RORE % Related Terms
MGIC Investment 5-Year RORE % Historical Data
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The historical data trend for MGIC Investment's 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Insurance Industry
For the Insurance industry and Financial Services sector, MGIC Investment's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where MGIC Investment's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
MGIC Investment (MTG) has a 5-Year RORE % of 10.54 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on MGIC Investment and its competitors. According to the industry distribution chart, MGIC Investment ranks #233 out of 449 companies in the Insurance industry, placing it in the top 51.9%.
Is MGIC Investment's 5-Year RORE % too high?
MGIC Investment's current 5-Year RORE % is 10.54. The Insurance industry median 5-Year RORE % is 11.54. MGIC Investment's value of 10.54 is 8.7% below this industry median. Based on the distribution chart, MGIC Investment ranks #233 out of 449 companies in the Insurance industry, which is below 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 5-Year RORE % compare to ESNT and ACT?
According to the Insurance industry distribution chart, MGIC Investment ranks #233 out of 449 companies for 5-Year RORE %. This places MGIC Investment in the lower half of its industry. The industry median 5-Year RORE % is 11.54. MGIC Investment's value of 10.54 is 8.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for an Insurance company?
The median 5-Year RORE % among Insurance companies is 11.54, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGIC Investment's current 5-Year RORE % of 10.54 is 8.7% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on MGIC Investment and its competitors. For the Insurance industry, the median 5-Year RORE % is 11.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGIC Investment's current 5-Year RORE % is 10.54. 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 5-Year RORE % is 10.54 and 8.7% below the Insurance industry median of 11.54. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For MGIC Investment (MTG), the current 5-Year RORE % is 10.54 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:
5-Year RORE %: 10.54
GF Value™: $28.23 vs. price of $27.36 (3.1% below fair value)
Industry Position: 8.7% below the Insurance median (#233 of 449)
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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