NYSE:ESNT is an undervalued gem with solid fundamentals.

ESSENT GROUP LTD (NYSE:ESNT) has caught the attention of our stock screener as a great value stock. NYSE:ESNT excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Assessing Valuation Metrics for NYSE:ESNT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:ESNT has earned a 8 for valuation:

• Based on the Price/Earnings ratio of 8.05, the valuation of ESNT can be described as reasonable.
• Based on the Price/Earnings ratio, ESNT is valued cheaper than 82.52% of the companies in the same industry.
• ESNT is valuated cheaply when we compare the Price/Earnings ratio to 25.81, which is the current average of the S&P500 Index.
• ESNT is valuated cheaply with a Price/Forward Earnings ratio of 7.75.
• Based on the Price/Forward Earnings ratio, ESNT is valued cheaper than 83.50% of the companies in the same industry.
• ESNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
• 88.35% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
• ESNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ESNT is cheaper than 80.58% of the companies in the same industry.
• ESNT has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for NYSE:ESNT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ESNT, the assigned 7 is a significant indicator of profitability:

• With an excellent Return On Assets value of 10.84%, ESNT belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
• ESNT has a better Return On Equity (13.65%) than 66.99% of its industry peers.
• The Return On Invested Capital of ESNT (11.45%) is better than 88.35% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for ESNT is significantly above the industry average of 7.26%.
• The Profit Margin of ESNT (62.75%) is better than 99.03% of its industry peers.
• ESNT has a better Operating Margin (76.89%) than 95.15% of its industry peers.

Health Assessment of NYSE:ESNT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ESNT has earned a 9 out of 10:

• An Altman-Z score of 4.09 indicates that ESNT is not in any danger for bankruptcy at the moment.
• ESNT's Altman-Z score of 4.09 is amongst the best of the industry. ESNT outperforms 85.44% of its industry peers.
• The Debt to FCF ratio of ESNT is 0.56, which is an excellent value as it means it would take ESNT, only 0.56 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.56, ESNT belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
• ESNT has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.08, ESNT is doing good in the industry, outperforming 75.73% of the companies in the same industry.
• ESNT has a Current Ratio of 3.38. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
• ESNT has a Current ratio of 3.38. This is amongst the best in the industry. ESNT outperforms 87.38% of its industry peers.
• ESNT has a Quick Ratio of 3.38. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
• ESNT has a Quick ratio of 3.38. This is amongst the best in the industry. ESNT outperforms 88.35% of its industry peers.

What does the Growth looks like for NYSE:ESNT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:ESNT has achieved a 5 out of 10:

• ESNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.88%.
• Measured over the past years, ESNT shows a quite strong growth in Revenue. The Revenue has been growing by 9.06% on average per year.
• The Revenue is expected to grow by 8.68% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ESNT

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.