NMI Holdings Price To Earning vs. Operating Margin
| NMIH Stock | USD 37.92 0.33 0.88% |
For NMI Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NMI Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NMI Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NMI Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NMI Holdings over time as well as its relative position and ranking within its peers.
NMI |
Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NMI Holdings. If investors know NMI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NMI Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.15 | Earnings Share 4.37 | Revenue Per Share 7.914 | Quarterly Revenue Growth 0.121 | Return On Assets 0.1019 |
The market value of NMI Holdings is measured differently than its book value, which is the value of NMI that is recorded on the company's balance sheet. Investors also form their own opinion of NMI Holdings' value that differs from its market value or its book value, called intrinsic value, which is NMI Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NMI Holdings' market value can be influenced by many factors that don't directly affect NMI Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NMI Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if NMI Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NMI Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
NMI Holdings Operating Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NMI Holdings's current stock value. Our valuation model uses many indicators to compare NMI Holdings value to that of its competitors to determine the firm's financial worth. NMI Holdings is regarded fifth in price to earning category among its peers. It is regarded third in operating margin category among its peers reporting about 0.07 of Operating Margin per Price To Earning. The ratio of Price To Earning to Operating Margin for NMI Holdings is roughly 13.99 . As of now, NMI Holdings' Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NMI Holdings' earnings, one of the primary drivers of an investment's value.NMI Operating Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
NMI Holdings |
| = | 10.65 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
NMI Holdings |
| = | 0.76 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
NMI Operating Margin Comparison
NMI Holdings is currently under evaluation in operating margin category among its peers.
NMI Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NMI Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NMI Holdings will eventually generate negative long term returns. The profitability progress is the general direction of NMI Holdings' change in net profit over the period of time. It can combine multiple indicators of NMI Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -139.9 M | -132.9 M | |
| Operating Income | 577 M | 605.9 M | |
| Income Before Tax | 412.7 M | 433.3 M | |
| Total Other Income Expense Net | -164.3 M | -156.1 M | |
| Net Income | 322.1 M | 338.2 M | |
| Net Income From Continuing Ops | 322.1 M | 338.2 M | |
| Net Income Applicable To Common Shares | 336.8 M | 353.7 M | |
| Income Tax Expense | 90.6 M | 95.1 M | |
| Interest Income | 13.9 M | 12.6 M | |
| Non Operating Income Net Other | 1.3 M | 1.3 M | |
| Net Interest Income | -32.2 M | -33.8 M | |
| Change To Netincome | 113.5 M | 119.2 M | |
| Net Income Per Share | 3.91 | 4.10 | |
| Income Quality | 1.06 | 0.79 | |
| Net Income Per E B T | 0.78 | 1.44 |
NMI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NMI Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NMI Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NMI Holdings' important profitability drivers and their relationship over time.
Use NMI Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NMI Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NMI Holdings will appreciate offsetting losses from the drop in the long position's value.NMI Holdings Pair Trading
NMI Holdings Pair Trading Analysis
The ability to find closely correlated positions to NMI Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NMI Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NMI Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NMI Holdings to buy it.
The correlation of NMI Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NMI Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NMI Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NMI Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your NMI Holdings position
In addition to having NMI Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 45 constituents at this time.
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Check out Correlation Analysis. For more detail on how to invest in NMI Stock please use our How to Invest in NMI Holdings guide.You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
To fully project NMI Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NMI Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include NMI Holdings' income statement, its balance sheet, and the statement of cash flows.