Investors should take notice of NYSE:ESNT—it offers a great deal for the fundamentals it presents.

ESSENT GROUP LTD (NYSE:ESNT) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:ESNT showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Assessing Valuation Metrics for NYSE:ESNT

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ESNT boasts a 7 out of 10:

• A Price/Earnings ratio of 8.73 indicates a reasonable valuation of ESNT.
• Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 80.58% of the companies listed in the same industry.
• ESNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.07.
• A Price/Forward Earnings ratio of 8.38 indicates a reasonable valuation of ESNT.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 80.58% of the companies listed in the same industry.
• ESNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.35.
• Based on the Enterprise Value to EBITDA ratio, ESNT is valued cheaply inside the industry as 85.44% of the companies are valued more expensively.
• ESNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ESNT is cheaper than 81.55% of the companies in the same industry.
• ESNT has a very decent profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ESNT has earned a 7 out of 10:

• With an excellent Return On Assets value of 10.84%, ESNT belongs to the best of the industry, outperforming 93.20% of the companies in the same industry.
• The Return On Equity of ESNT (13.65%) is better than 67.96% of its industry peers.
• ESNT's Return On Invested Capital of 11.45% is amongst the best of the industry. ESNT outperforms 89.32% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ESNT is significantly above the industry average of 7.70%.
• ESNT has a better Profit Margin (62.75%) than 99.03% of its industry peers.
• With an excellent Operating Margin value of 76.89%, ESNT belongs to the best of the industry, outperforming 95.15% of the companies in the same industry.

Evaluating Health: NYSE:ESNT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ESNT has earned a 9 out of 10:

• ESNT has an Altman-Z score of 4.31. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.31, ESNT belongs to the top of the industry, outperforming 87.38% of the companies in the same industry.
• 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.
• ESNT has a Debt to FCF ratio of 0.56. This is amongst the best in the industry. ESNT outperforms 86.41% of its industry peers.
• ESNT has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of ESNT (0.08) is better than 74.76% of its industry peers.
• A Current Ratio of 3.38 indicates that ESNT has no problem at all paying its short term obligations.
• ESNT has a Current ratio of 3.38. This is amongst the best in the industry. ESNT outperforms 88.35% 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 better Quick ratio (3.38) than 89.32% of its industry peers.

Growth Analysis for NYSE:ESNT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ESNT has received a 5 out of 10:

• Looking at the last year, ESNT shows a quite strong growth in Revenue. The Revenue has grown by 10.88% in the last year.
• ESNT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
• ESNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.88% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of ESNT for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.