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    How MGIC’s 2025 Earnings, Buybacks and Dividend at MGIC Investment (MTG) Have Changed Its Investment Story

    Simply Wall St·02/10/2026 14:19:31
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    • MGIC Investment Corporation has already reported fourth-quarter 2025 results, with revenue of US$298.65 million and net income of US$169.31 million, and for the full year 2025 generated revenue of US$1.21 billion and net income of US$738.35 million alongside a quarterly dividend declaration of US$0.15 per share.
    • The company’s earnings per share from continuing operations increased year over year in both the quarter and the full year, supported by an extensive buyback program that retired 16,495,213 shares, or 7.2% of shares outstanding, for US$450.19 million.
    • With these results and the margin pressure management highlighted, we’ll now examine how MGIC Investment’s investment narrative is being reshaped.

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    What Is MGIC Investment's Investment Narrative?

    To own MGIC Investment today, you really have to believe in the core mortgage insurance franchise holding up even as growth looks muted and margins come under pressure. The latest quarter confirmed that tension: revenue was slightly softer, net income eased, yet EPS ticked higher thanks to the sizeable US$450.19 million buyback that retired 7.2% of shares. Management is still returning capital via a US$0.15 dividend, but the market’s pushback on weaker margins and stagnant new insurance volume suggests near term catalysts are more about cost discipline and capital allocation than breakout top line growth. The recent results do not appear to upend the story, but they do sharpen the key risk that earnings could trend sideways if housing affordability and high mortgage rates keep new business subdued.

    However, one risk around future earnings resilience may be easier to overlook than it should be. MGIC Investment's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

    Exploring Other Perspectives

    MTG 1-Year Stock Price Chart
    MTG 1-Year Stock Price Chart
    Three Simply Wall St Community fair value estimates for MGIC span roughly US$27.78 to almost US$77.76, showing how far apart individual views can be. Against that backdrop, the latest results and margin pressure highlight why some investors are focusing less on valuation and more on whether earnings can hold up if housing affordability stays weak.

    Explore 3 other fair value estimates on MGIC Investment - why the stock might be worth over 2x more than the current price!

    Build Your Own MGIC Investment Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.