NYSE:ESNT stands out as a stock that provides good value for the fundamentals it showcases.

Our stock screening tool has pinpointed ESSENT GROUP LTD (NYSE:ESNT) as an undervalued stock option. NYSE:ESNT retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Assessing Valuation Metrics for NYSE:ESNT

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:ESNT has achieved a 8 out of 10:

• The Price/Earnings ratio is 8.26, which indicates a very decent valuation of ESNT.
• Based on the Price/Earnings ratio, ESNT is valued cheaper than 81.37% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 25.02. ESNT is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 7.96, the valuation of ESNT can be described as very cheap.
• 82.35% of the companies in the same industry are more expensive than ESNT, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, ESNT is valued rather cheaply.
• 83.33% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 82.35% of the companies listed in the same industry.
• ESNT has a very decent profitability rating, which may justify a higher PE ratio.

A Closer Look at Profitability for NYSE:ESNT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ESNT has achieved a 7:

• ESNT has a Return On Assets of 10.84%. This is amongst the best in the industry. ESNT outperforms 93.14% of its industry peers.
• The Return On Equity of ESNT (13.65%) is better than 63.73% of its industry peers.
• With an excellent Return On Invested Capital value of 11.45%, ESNT belongs to the best of the industry, outperforming 89.22% of the companies in the same industry.
• ESNT had an Average Return On Invested Capital over the past 3 years of 13.02%. This is significantly above the industry average of 7.93%.
• With an excellent Profit Margin value of 62.75%, ESNT belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
• With an excellent Operating Margin value of 76.89%, ESNT belongs to the best of the industry, outperforming 95.10% of the companies in the same industry.

Exploring NYSE:ESNT's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ESNT has achieved a 9 out of 10:

• ESNT has an Altman-Z score of 4.16. 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 4.16, ESNT belongs to the top of the industry, outperforming 87.25% 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 better Debt to FCF ratio (0.56) than 86.27% of its industry peers.
• A Debt/Equity ratio of 0.08 indicates that ESNT is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.08, ESNT is in the better half of the industry, outperforming 75.49% of the companies in the same industry.
• A Current Ratio of 3.38 indicates that ESNT has no problem at all paying its short term obligations.
• The Current ratio of ESNT (3.38) is better than 89.22% of its industry peers.
• A Quick Ratio of 3.38 indicates that ESNT has no problem at all paying its short term obligations.
• ESNT's Quick ratio of 3.38 is amongst the best of the industry. ESNT outperforms 90.20% of its industry peers.

Growth Analysis for NYSE:ESNT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ESNT boasts a 5 out of 10:

• The Revenue has grown by 10.88% in the past year. This is quite good.
• 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 8.96% on average over the next years. This is quite good.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.