The business behind the dividend
| Measure | MTG | Median | Formula |
|---|---|---|---|
| Return on equity | 14.3% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $744.27m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $851.77m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 76.5% | 14.3% | Operating income ÷ revenue |
| Net margin | 60.8% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
| Accruals | -1.7% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Return on capital employed — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 14.3% | 14.8% | 14.1% | 18.6% | 13.1% | 9.5% | 15.6% | 18.7% | 11.3% | 13.4% | 14.1% |
| Operating margin | 76.5% | 80.2% | 78.1% | 92.9% | 67.6% | 46.6% | 69.9% | — | — | — | 76.5% |
| Net margin | 60.8% | 63.2% | 61.7% | 73.8% | 53.6% | 37.2% | 55.5% | 59.6% | 33.4% | 32.2% | 55.5% |
How it compares in banks & insurers
Among the 377 banks & insurers companies here measured on GAAP earnings, Mgic Investment pays out less than 305 of them. The median for that group is 30.6%, against this company’s 17.9%.
Closest on GAAP earnings
- Southern Missouri Bancorp (SMBC) 17.8%
- SEI Investments (SEIC) 17.9%
- Western Alliance Bancorporation (WAL) 17.9%
- Bankwell Financial Group (BWFG) 18.0%
Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →