NMI Holdings, Inc. (NMIH)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
NMI Holdings, Inc. (NMIH) trades at $41.31 with AI Score 79/100 (Grade A). NMI Holdings, Inc. is a leading provider of private mortgage guaranty insurance in the United States. Market cap: $3.14B, Sector: Financial services.
Price live · AI analysis from May 9, 2026NMIH stock analysis for 2026: Analysts have set a consensus price target of $43.50 for NMI Holdings, Inc., suggesting 5.3% upside from the current price of $41.31. The AI MoonshotScore is 79/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
NMIH: 1/1 perspectives are bullish.
How is this calculated? →NMI Holdings, Inc. (NMIH) Financial Services Profile
NMI Holdings, Inc. (NMIH) is a financial services company specializing in private mortgage guaranty insurance, serving a diverse range of lenders across the United States. With a strong profit margin and focus on risk management, NMIH facilitates homeownership by mitigating lender risk in the mortgage market, differentiating itself through tailored services and strategic partnerships.
What Is the Investment Thesis for NMIH?
NMI Holdings, Inc. presents a compelling investment case based on its strong market position and financial performance. With a P/E ratio of 7.2 and a high profit margin of 53.8%, NMIH demonstrates efficient profitability. The company's growth is underpinned by increasing demand for mortgage insurance, driven by favorable demographic trends and a recovering housing market. Key catalysts include strategic partnerships with mortgage lenders and expansion of its service offerings. However, potential risks include fluctuations in interest rates and regulatory changes affecting the mortgage industry. Investors should monitor these factors to assess the long-term viability of NMIH's business model.
Based on FMP financials and quantitative analysis
NMIH Key Highlights
- Market capitalization of $3.14B reflects investor confidence in NMIH's growth potential.
- Profit margin of 53.8% indicates strong operational efficiency and pricing power.
- Gross margin of 89.7% highlights the value-added nature of NMIH's services.
- Beta of 0.64 suggests lower volatility compared to the overall market, making it a relatively stable investment.
- NMIH serves a diverse range of mortgage lenders, mitigating concentration risk.
Who Are NMIH's Competitors?
NMIH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ENVA Enova International, Inc. | $233.70 | -0.63% | $5.82B | 98 |
| BFH Bread Financial Holdings, Inc. | $103.40 | +1.16% | $4.18B | 99 |
| BKU BankUnited, Inc. | $49.45 | +1.80% | $3.59B | 68 |
| BHF Brighthouse Financial, Inc. | $64.88 | +1.36% | $3.73B | — |
| RYAN Ryan Specialty Group Holdings, Inc. | $41.35 | -1.62% | $5.35B | 68 |
| FAF First American Financial Corporation | $70.10 | +0.89% | $7.14B | 62 |
| LCSHF Lancashire Holdings Limited | $8.40 | +0.00% | $2.04B | 58 |
| ACMTA ACMAT Corporation | $18.29 | +0.00% | $14.10M | 55 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are NMIH's Key Strengths?
- High profit margin of 53.8%
- Strong gross margin of 89.7%
- Low beta of 0.64 indicating lower volatility
- Diverse customer base of mortgage lenders
What Are NMIH's Weaknesses?
- Reliance on the health of the housing market
- Exposure to interest rate fluctuations
- Dependence on regulatory environment
- No dividend yield
What Could Drive NMIH Stock Higher?
- Increasing demand for mortgage insurance due to rising homeownership rates.
- Strategic partnerships with fintech companies to enhance service delivery.
- Potential regulatory changes that could benefit private mortgage insurers.
- Expansion into underserved markets with high homeownership potential.
What Are the Key Risks for NMIH?
- Financial-distress signal — its Altman Z-Score of 0.67 sits in the distress zone (elevated bankruptcy risk).
- Insider selling — insiders were net sellers of roughly $2.3M recently.
- Fluctuations in interest rates affecting mortgage demand.
- Economic downturn leading to higher default rates.
- Increased competition from other mortgage insurers.
- Changes in government regulations affecting the mortgage industry.
What Are the Growth Opportunities for NMIH?
- Expansion into underserved markets: NMIH can expand its reach by targeting underserved geographic markets and demographic segments. This includes partnering with community banks and credit unions in areas with high homeownership potential but limited access to mortgage insurance. By tailoring its services to meet the specific needs of these markets, NMIH can tap into new revenue streams and increase its market share. This expansion strategy could yield significant growth within the next 3-5 years.
- Strategic partnerships with fintech companies: Collaborating with fintech companies can enhance NMIH's technological capabilities and improve its service delivery. This includes integrating digital platforms for loan origination and risk assessment, streamlining the mortgage insurance process and reducing costs. By leveraging fintech innovations, NMIH can attract a new generation of tech-savvy lenders and borrowers, positioning itself as a leader in the digital mortgage insurance space. These partnerships could drive substantial growth in the next 2-3 years.
- Development of new insurance products: NMIH can develop new insurance products tailored to specific segments of the mortgage market, such as first-time homebuyers or self-employed borrowers. This includes offering specialized coverage options and flexible payment plans to meet the unique needs of these groups. By diversifying its product portfolio, NMIH can attract a wider range of customers and increase its revenue streams. These new products could contribute significantly to growth over the next 3-5 years.
- Increased focus on data analytics: Leveraging data analytics can improve NMIH's risk assessment capabilities and enhance its underwriting process. This includes using advanced algorithms to identify potential risks and optimize pricing strategies. By harnessing the power of data, NMIH can reduce its loss ratio and improve its profitability. This data-driven approach could lead to significant cost savings and revenue gains in the next 1-2 years.
- Expansion of outsourced loan review services: NMIH can expand its outsourced loan review services to help lenders manage their mortgage portfolios more effectively. This includes providing comprehensive loan quality assessments, compliance reviews, and risk management solutions. By offering these services, NMIH can become a trusted partner to lenders, helping them improve their loan performance and reduce their exposure to risk. This expansion could drive significant growth in the next 2-3 years.
What Opportunities Does NMIH Have?
- Expansion into underserved markets
- Strategic partnerships with fintech companies
- Development of new insurance products
- Increased focus on data analytics
What Threats Does NMIH Face?
- Increased competition from other mortgage insurers
- Economic downturn leading to higher default rates
- Changes in government regulations affecting the mortgage industry
- Technological disruptions in the financial services sector
What Are NMIH's Competitive Advantages?
- Strong relationships with a diverse range of mortgage lenders.
- Expertise in risk management and underwriting.
- Established brand reputation in the mortgage insurance industry.
- Efficient operational structure leading to high profit margins.
What Does NMIH Do?
NMI Holdings, Inc., incorporated in 2011 and headquartered in Emeryville, California, operates as a provider of private mortgage guaranty insurance in the United States. The company's core business revolves around offering mortgage insurance services designed to protect lenders against losses in the event of borrower default. NMIH also provides outsourced loan review services to mortgage loan originators, enhancing the quality and compliance of mortgage portfolios. NMIH serves a diverse clientele, including national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, and internet-sourced lenders. This broad reach allows NMIH to play a significant role in the mortgage market, facilitating homeownership by reducing lender risk. NMIH's strategic focus on risk management and customer service has enabled it to establish a strong market presence and maintain a robust financial profile. The company continues to evolve its service offerings to meet the changing needs of the mortgage industry, adapting to new regulations and market dynamics to ensure long-term sustainability and growth.
What Products and Services Does NMIH Offer?
- Provides private mortgage guaranty insurance to lenders.
- Protects lenders against losses from borrower defaults.
- Offers outsourced loan review services to mortgage originators.
- Serves national and regional mortgage banks.
- Works with credit unions and community banks.
- Partners with builder-owned mortgage lenders and internet-sourced lenders.
- Facilitates homeownership by mitigating lender risk.
How Does NMIH Make Money?
- Generates revenue through premiums paid by lenders for mortgage insurance coverage.
- Manages risk by carefully underwriting mortgage loans and assessing borrower creditworthiness.
- Invests premiums to generate investment income.
- Provides outsourced loan review services for additional fees.
What Industry Does NMIH Operate In?
NMI Holdings, Inc. operates within the specialty insurance segment of the financial services sector. The mortgage insurance industry is influenced by macroeconomic factors such as interest rates, housing market trends, and regulatory policies. The competitive landscape includes both large national players and smaller regional firms. NMIH differentiates itself through its focus on customer service, risk management, and strategic partnerships. The industry is expected to grow as homeownership rates increase and lenders seek to mitigate risk in an uncertain economic environment.
Who Are NMIH's Key Customers?
- National and regional mortgage banks
- Money center banks
- Credit unions and community banks
- Builder-owned mortgage lenders
- Internet-sourced lenders
Company Profile
NMI Holdings, Inc. operates in the Insurance - Specialty industry within the Financial Services sector. It is headquartered in EmeryVille, US. The company is led by CEO Adam S. Pollitzer. NMIH has traded publicly since 2013.
How NMI Holdings, Inc. Is Valued
NMI Holdings, Inc. carries a market capitalization of $3.14B, placing it in the mid-cap category. Relative to its peer group, NMIH's quantitative score of 79/100 is roughly in line with the peer average of 83/100.
ROE 0%Key Financial Metrics
Return on equity for NMI Holdings, Inc. stands at 0.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. NMIH trades at a trailing price-to-earnings ratio of 7.24, below the Financial Services sector average of ~18x. Its free cash flow yield is 15.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.39 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 13.8%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
NMI Holdings, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.67 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project NMI Holdings, Inc. revenue of about $628.9M for fiscal 2026, with EPS near $5.15.
Net sellingInsider Activity
Over the past six months, NMI Holdings, Inc. insiders filed 30 SEC Form 4 transactions — 18 sales and 12 purchases. On net that is roughly 147K shares disposed (about $2.3M), a signal worth weighing alongside the fundamentals.
NMIH Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- NMIH insiders have been accumulating shares recently, signaling strong confidence in the company's future prospects. This insider activity is a good sign, suggesting they believe the stock is undervalued.
- Community sentiment around NMIH has noticeably shifted towards a more positive outlook in the last month, with increased mentions of its growth potential.
- There's a growing perception that NMIH is well-positioned to capitalize on the current housing market trends, which could drive increased business volume.
- Bullish community members highlight NMIH's strategic partnerships and initiatives as key drivers for sustained growth and market leadership.
Bear Case
- Despite positive sentiment, some community members express concerns about NMIH's reliance on the housing market's stability, fearing potential downturns.
- Recent market developments suggest increased competition in the mortgage insurance sector, which could put pressure on NMIH's market share and profitability.
- Bearish community views point to potential regulatory changes that could negatively impact NMIH's business model and overall financial performance.
- There's a lingering skepticism about NMIH's ability to maintain its current growth rate in the face of broader economic uncertainties, leading to cautious sentiment.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
NMIH Latest News
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Keefe, Bruyette & Woods Maintains Outperform on NMI Holdings, Raises Price Target to $47
benzinga · Jun 25, 2026
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2 Reasons to Watch NMIH and 1 to Stay Cautious
Yahoo! Finance: NMIH News · Jun 24, 2026
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NMIH Lags Industry, Trades at a Discount: Here's How to Play the Stock
zacks.com · Jun 22, 2026
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NMI Research Reveals Nearly One in Three Drivers Have Received a Parking Ticket Due to Confusing Payment Instructions
businesswire.com · Jun 15, 2026
NMIH Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NMIH.
Price Targets
Consensus target: $43.50
NMIH MoonshotScore
What does this score mean?
The MoonshotScore rates NMIH's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Keefe, Bruyette & Woods Maintains Outperform on NMI Holdings, Raises Price Target to $47
2 Reasons to Watch NMIH and 1 to Stay Cautious
NMIH Lags Industry, Trades at a Discount: Here's How to Play the Stock
NMI Research Reveals Nearly One in Three Drivers Have Received a Parking Ticket Due to Confusing Payment Instructions
Latest NMI Holdings, Inc. Analysis
Leadership: Adam S. Pollitzer
CEO
Adam S. Pollitzer serves as the CEO of NMI Holdings, Inc., bringing extensive experience in the financial services and mortgage insurance industries. His career includes leadership roles focused on strategic planning, risk management, and business development. Pollitzer's background encompasses a deep understanding of the mortgage market and the regulatory landscape. He is responsible for guiding NMIH's strategic direction and overseeing its day-to-day operations. His expertise is crucial in navigating the complexities of the mortgage insurance sector and driving the company's growth initiatives.
Track Record: Under Adam S. Pollitzer's leadership, NMIH has achieved significant milestones, including consistent profitability and expansion of its market share. He has spearheaded strategic partnerships with key mortgage lenders and overseen the development of innovative insurance products. Pollitzer's focus on risk management has contributed to the company's strong financial performance and stability. His leadership has been instrumental in positioning NMIH as a leading provider of private mortgage guaranty insurance.
Common Questions About NMIH (Financial Services)
What does NMI Holdings, Inc. do?
NMI Holdings, Inc. operates as a private mortgage guaranty insurance company in the United States. It provides mortgage insurance services to lenders, protecting them against losses in the event of borrower default. NMIH also offers outsourced loan review services to mortgage loan originators, enhancing the quality and compliance of mortgage portfolios. The company serves a diverse range of clients, including national and regional mortgage banks, credit unions, and community banks, playing a crucial role in facilitating homeownership by mitigating lender risk.
What do analysts say about NMIH stock?
Analyst consensus on NMIH stock reflects a generally positive outlook, driven by the company's strong financial performance and growth potential. Key valuation metrics, such as the P/E ratio of 7.2 and profit margin of 53.8%, suggest efficient profitability. Analysts also consider the increasing demand for mortgage insurance and NMIH's strategic partnerships as positive growth drivers. However, potential risks, such as interest rate fluctuations and regulatory changes, are also factored into their assessments. Investors should conduct their own due diligence to form an independent opinion.
What are the main risks for NMIH?
The main risks for NMIH include fluctuations in interest rates, which can impact mortgage demand and borrower affordability. An economic downturn could lead to higher default rates, increasing claims and reducing profitability. Increased competition from other mortgage insurers could put pressure on pricing and market share. Changes in government regulations affecting the mortgage industry could also pose challenges. Effective risk management and diversification are crucial for NMIH to mitigate these potential threats.
How does NMI Holdings, Inc. make money in financial services?
NMI Holdings, Inc. generates revenue primarily through premiums paid by lenders for mortgage insurance coverage. These premiums are calculated based on the loan amount, borrower creditworthiness, and other risk factors. NMIH also earns investment income by investing the premiums it collects. Additionally, the company generates revenue from outsourced loan review services provided to mortgage loan originators. This diversified revenue stream allows NMIH to maintain a stable financial profile and capitalize on various opportunities within the mortgage market.
How is NMI Holdings, Inc. adapting to fintech disruption?
NMI Holdings, Inc. is adapting to fintech disruption by forming strategic partnerships with fintech companies to enhance its technological capabilities and improve its service delivery. This includes integrating digital platforms for loan origination and risk assessment, streamlining the mortgage insurance process and reducing costs. By leveraging fintech innovations, NMIH aims to attract a new generation of tech-savvy lenders and borrowers, positioning itself as a leader in the digital mortgage insurance space. These initiatives are crucial for maintaining competitiveness and driving future growth.
What are the key factors to evaluate for NMIH?
NMI Holdings, Inc. (NMIH) holds an AI score of 79/100 (high). P/E: 7.2x vs the S&P 500's ~20-25x. Analysts target $43.50 (+5%). Not financial advice.
How frequently does NMIH data refresh on this page?
NMIH prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven NMIH's recent stock price performance?
NMI Holdings, Inc. (NMIH) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: High profit margin of 53.8%. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest reporting period.