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MTG (MGIC Investment) Earnings Yield (Joel Greenblatt) % : 16.34% (As of Jun. 2024)


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What is MGIC Investment Earnings Yield (Joel Greenblatt) %?

MGIC Investment's Enterprise Value for the quarter that ended in Jun. 2024 was $5,995 Mil. MGIC Investment's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 was $980 Mil. MGIC Investment's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2024 was 16.34%.

The historical rank and industry rank for MGIC Investment's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

MTG' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.05   Med: 14.68   Max: 39.32
Current: 14.12

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of MGIC Investment was 39.32%. The lowest was 5.05%. And the median was 14.68%.

MTG's Earnings Yield (Joel Greenblatt) % is ranked better than
71.58% of 482 companies
in the Insurance industry
Industry Median: 6.955 vs MTG: 14.12

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. MGIC Investment's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2024 was 22.96%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


MGIC Investment Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for MGIC Investment's Earnings Yield (Joel Greenblatt) % 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.

* Premium members only.

MGIC Investment Earnings Yield (Joel Greenblatt) % Chart

MGIC Investment Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.10 11.89 15.92 27.40 16.98

MGIC Investment Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.37 18.87 16.98 15.46 16.34

Competitive Comparison of MGIC Investment's Earnings Yield (Joel Greenblatt) %

For the Insurance - Specialty subindustry, MGIC Investment's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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's Earnings Yield (Joel Greenblatt) % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, MGIC Investment's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where MGIC Investment's Earnings Yield (Joel Greenblatt) % falls into.



MGIC Investment Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

MGIC Investments Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=939.134/5535.93926
=16.96 %

MGIC Investment's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $980 Mil.



MGIC Investment  (NYSE:MTG) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


MGIC Investment Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of MGIC Investment's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


MGIC Investment Business Description

Industry
Traded in Other Exchanges
Address
250 E. Kilbourn Avenue, MGIC Plaza, Milwaukee, WI, USA, 53202
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 accounts for close to majority of the company's total revenue. Investment income accounts for the remaining revenue. The company sells its insurance products in all 50 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.
Executives
Michael Leal Thompson director 4 BRIDGET COURT, BURR RIDGE IL 60527
Analisa M Allen director 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Teresita M. Lowman director 2235 ENTERPRISE STREET #110, ESCONDIDO CA 92029
Jodee A Kozlak director 1000 NICOLLET MALL, TPS-3255, MINNEAPOLIS MN 55403
Jay C. Hartzell director 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Sheryl L. Sculley director 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Gary A. Poliner director C/O MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Daniel A. Arrigoni director C/O MGIC INVESTMENT CORPORATION, 250 E KILBOURN AVE, MILWAUKEE WI 53202
James J. Hughes officer: SVP-Sales & Bus. Development C/O MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Michael E Lehman director
Julie K. Sperber officer: VP-Controller & Chief Acct Off MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Patrick Sinks officer: Executive Vice President 250 E KILBOURN AVE, MILWAUKEE WI 53202
Steven M. Thompson officer: EVP&CRO-Mort Gty Ins Corp 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Nathaniel H Colson officer: Executive Vice President & CFO C/O MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Robert J Candelmo officer: SVP-Chief Information Officer 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202