Is NMI (NMIH) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is NMI (NMIH). NMIH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is NMIH's P/B ratio of 1.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.44. Over the past year, NMIH's P/B has been as high as 1.40 and as low as 1.04, with a median of 1.23.
Finally, our model also underscores that NMIH has a P/CF ratio of 7.71. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NMIH's P/CF compares to its industry's average P/CF of 8.70. Within the past 12 months, NMIH's P/CF has been as high as 7.77 and as low as 5.45, with a median of 6.76.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at W.R. Berkley (WRB). WRB is a # 2 (Buy) stock with a Value score of A.
Shares of W.R. Berkley are currently trading at a forward earnings multiple of 12.14 and a PEG ratio of 1.35 compared to its industry's P/E and PEG ratios of 25.37 and 2.37, respectively.
WRB's Forward P/E has been as high as 16.90 and as low as 11.29, with a median of 12.24. During the same time period, its PEG ratio has been as high as 1.88, as low as 1.25, with a median of 1.36.
W.R. Berkley also has a P/B ratio of 2.60 compared to its industry's price-to-book ratio of 1.44. Over the past year, its P/B ratio has been as high as 3.08, as low as 2.08, with a median of 2.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NMI and W.R. Berkley are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NMIH and WRB feels like a great value stock at the moment.
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NMI Holdings Inc (NMIH) : Free Stock Analysis Report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
