Stock fact sheet · data as of
NMI Holdings, Inc. (NMIH): fair value, margin of safety and Wheel Score
Financial Services · Insurance - Specialty · United States · Value
Is NMIH undervalued?
NMIH has a margin of safety of 59%: the stock closed at 40.10 on 16 Oct 2026 against a GLS average fair value of 97.71. 7 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: Lynch gives 18.86 while Payback Time gives 167.76. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files NMIH under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for NMIH
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 132.42 | +230% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 64.73 | +61% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 80.25 | +100% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 18.86 | -53% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 113.17 | +182% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 146.50 | +265% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 167.76 | +318% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 57.97 | +45% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -3.30 | -108% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 49.50 | +23% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - NMIH passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 9.1 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 12.9%, ROE 15.0%, ROA 10.1% - with debt at 0.16 times equity and a free-cash-flow yield of 14.6%.
NMI Holdings, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 12.9% |
|---|---|---|---|
| GLS Moat | 9.1 / 10 | ROE | 15.0% |
| Debt / equity | 0.16 | ROA | 10.1% |
| Free-cash-flow yield | 14.6% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 88: Prime
NMIH scores 88 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (14/15), the option premium on offer (20/20) and how easily the stock trades (16/20).
Implied volatility is 45% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 562 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 963k shares a day on a market cap of $3.0B, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 59% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 14 / 15 | moat 9.1/10 | |
| Premium | 20 / 20 | implied volatility 45% | |
| Stability | 16 / 20 | 963k shares/day, $3.0B cap, beta 0.56 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Insurance - Specialty
The 12 companies below are the closest to NMI Holdings, Inc. by market cap within the Insurance - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AGO Assured Guaranty Ltd. | 69.86 | 187.20 | +63% | 77Good | $3.1B |
| RDN Radian Group Inc. | 33.41 | 81.50 | +59% | 85Prime | $4.4B |
| MTG MGIC Investment Corporation | 27.61 | 49.38 | +44% | 89Prime | $5.7B |
| ESNT Essent Group Ltd. | 63.76 | 105.84 | +40% | 83Prime | $5.7B |
| ACT Enact Holdings Inc. | 45.67 | 66.03 | +31% | 87Prime | $6.3B |
| FAF First American Financial Corporation | 63.43 | 106.39 | +40% | 87Prime | $6.5B |
| EIG Employers Holdings, Inc. | 50.45 | 21.00 | -140% | 46Weak | $906M |
| FNF Fidelity National Financial, Inc. | 39.68 | 112.61 | +65% | 91Prime | $10.6B |
| TIPT Tiptree Inc. | 16.90 | 265.66 | +94% | 72Good | $629M |
| ITIC Investors Title Company | 288.15 | 318.19 | +9% | 39No options | $544M |
| AMSF AMERISAFE, Inc. | 25.04 | 28.94 | +13% | 66Good | $464M |
| MBI MBIA Inc. | 4.39 | 15.52 | +72% | 45Weak | $224M |
⚖ Compare NMIH with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about NMIH
Is NMIH undervalued right now?
By the GLS models, yes: at 40.10 the stock is 59% below the average fair value of 97.71 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NMIH and what does it mean?
NMIH scores 88 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for NMIH?
97.71 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does NMI Holdings, Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does NMIH have listed options, and how liquid are they?
Yes. The nightly snapshot found 92 listed contracts with 562 open interest across all expiries and implied volatility of 45% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.