NMI Holdings (NMIH) has just wrapped up FY 2025 with fourth quarter revenue of US$180.7 million and basic EPS of US$1.23, supported by trailing twelve month revenue of US$706.4 million and EPS of US$5.01. The company has seen quarterly revenue move from US$166.5 million in Q4 2024 to US$180.7 million in Q4 2025, while basic EPS stepped from US$1.09 to US$1.23 over the same period. This sets up the latest print against an 8% earnings growth rate and a 55.1% trailing net margin. With that backdrop, investors are likely to focus on how firmly those margins hold up as the broader growth outlook cools.

See our full analysis for NMI Holdings.

With the headline numbers in place, the next step is to weigh these results against the prevailing stories about NMIH to see which narratives the data supports and which ones start to look stretched.

55% Net Margin Puts Profitability In Focus

• NMIH reported a trailing 12 month net profit margin of 55.1%, very close to the prior year’s 55.3%, on US$706.4 million of revenue and US$388.9 million of net income.
• Consensus narrative points to improved efficiency and risk management as drivers of earnings stability, and the current margin level ties into that view. However, the small move from 55.3% to 55.1% shows profitability is strong but not steadily widening.
  • Supporters highlight expense leverage and low expense ratios as helping margins, which fits with net income of US$388.9 million on US$706.4 million of revenue.
  • At the same time, analysts in the narrative expect margins to step down to 50.6% over several years, which contrasts with the still elevated 55.1% reported today.

EPS Growth Slows From 5 Year Pace

• Earnings grew 8% over the last year, compared with an average of about 15% per year over the past five years, and trailing 12 month EPS sits at US$5.01.
• When you line this up with the more optimistic points in the consensus narrative, there is a clear tension between the solid current earnings base and the slower growth that is showing up in the numbers and forecasts.
  • Analysts in the narrative expect earnings to reach US$410.6 million and EPS of US$5.45 by around 2028, which is a smaller step up from the current US$388.9 million and US$5.01 than the earlier 15% per year history might suggest.
  • Forecast annual earnings growth of 2.6% and revenue growth of 4.9% in the dataset sit below the referenced broader US market, which contrasts with the earlier period when earnings were compounding at about 15% per year.

Investors who want to see how different market participants frame that growth slowdown against the company’s long run story can dig into the wider community view of NMIH: See what the community is saying about NMI Holdings

Low 8x P/E Versus Peers And DCF

• The shares trade on a trailing P/E of about 8x at a price of US$40.92, compared with 9.9x for peers and 15.2x for the US Diversified Financial industry, and a DCF fair value of about US$106.90 in the analysis.
• Compared with the more cautious elements in the consensus narrative, the current valuation leans toward a value style setup, where slower expected growth sits alongside a large gap between price and the DCF fair value reference.
  • Analysts’ price target cited in the data is US$46.29, which is above the current US$40.92 share price but far below the US$106.90 DCF fair value reference, showing different ways the same earnings profile is being priced.
  • Expected earnings growth of 2.6% per year in the dataset and the margin path assumed in the narrative help explain why the price target sits much closer to today’s share price than to the DCF fair value figure.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for NMI Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If this data paints a different picture for you, turn that view into a clear, shareable story in just a few minutes: Do it your way

A great starting point for your NMI Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

NMI Holdings pairs a strong margin with slower 8% earnings growth, more modest forward expectations and a share price that sits below some valuation references.

If that slower growth and valuation gap leave you wanting a stronger mix of quality and price, take a look at our 52 high quality undervalued stocks today and see which names fit those tighter standards.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.