In a market where value is scarce, NYSE:ESNT offers a refreshing opportunity with its solid fundamentals.

Discover ESSENT GROUP LTD (NYSE:ESNT), an undervalued stock highlighted by our stock screener. NYSE:ESNT showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Analyzing Valuation Metrics

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:

• With a Price/Earnings ratio of 8.50, the valuation of ESNT can be described as very reasonable.
• Based on the Price/Earnings ratio, ESNT is valued cheaper than 82.18% of the companies in the same industry.
• ESNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.27.
• Based on the Price/Forward Earnings ratio of 7.80, the valuation of ESNT can be described as very cheap.
• Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than the industry average as 78.22% of the companies are valued more expensively.
• ESNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.18.
• 86.14% 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 81.19% of the companies listed in the same industry.
• The decent profitability rating of ESNT may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ESNT scores a 7 out of 10:

• ESNT has a better Return On Assets (10.84%) than 93.07% of its industry peers.
• The Return On Equity of ESNT (13.65%) is better than 65.35% of its industry peers.
• ESNT's Return On Invested Capital of 11.45% is amongst the best of the industry. ESNT outperforms 87.13% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ESNT is significantly above the industry average of 7.35%.
• Looking at the Profit Margin, with a value of 62.75%, ESNT belongs to the top of the industry, outperforming 97.03% of the companies in the same industry.
• ESNT has a Operating Margin of 76.89%. This is amongst the best in the industry. ESNT outperforms 94.06% of its industry peers.

A Closer Look at Health for NYSE:ESNT

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ESNT, the assigned 9 for health provides valuable insights:

• An Altman-Z score of 4.28 indicates that ESNT is not in any danger for bankruptcy at the moment.
• ESNT has a better Altman-Z score (4.28) than 87.13% of its industry peers.
• ESNT has a debt to FCF ratio of 0.56. This is a very positive value and a sign of high solvency as it would only need 0.56 years to pay back of all of its debts.
• ESNT's Debt to FCF ratio of 0.56 is amongst the best of the industry. ESNT outperforms 83.17% 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 76.24% of its industry peers.
• A Current Ratio of 3.38 indicates that ESNT has no problem at all paying its short term obligations.
• ESNT's Current ratio of 3.38 is amongst the best of the industry. ESNT outperforms 86.14% of its industry peers.
• A Quick Ratio of 3.38 indicates that ESNT has no problem at all paying its short term obligations.
• ESNT has a better Quick ratio (3.38) than 87.13% of its industry peers.

Understanding NYSE:ESNT's Growth Score

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ESNT scores a 5 out of 10:

• Looking at the last year, ESNT shows a quite strong growth in Revenue. The Revenue has grown by 10.89% in the last year.
• The Revenue has been growing by 9.06% on average over the past years. This is quite good.
• Based on estimates for the next years, ESNT will show a quite strong growth in Revenue. The Revenue will grow by 8.76% on average per year.

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

Our latest full fundamental report of ESNT contains the most current fundamental analsysis.

Keep in mind

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.