NYSE:ESNT is probably undervalued for the fundamentals it is displaying.

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.

Valuation Analysis for NYSE:ESNT

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:ESNT was assigned a score of 8 for valuation:

• Based on the Price/Earnings ratio of 8.42, the valuation of ESNT can be described as reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 82.65% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.56. ESNT is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 8.13, which indicates a very decent valuation of ESNT.
• 75.51% of the companies in the same industry are more expensive than ESNT, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 24.20. ESNT is valued rather cheaply when compared to this.
• ESNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ESNT is cheaper than 87.76% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, ESNT is valued cheaper than 87.76% of the companies in the same industry.
• ESNT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ESNT has a very decent profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: 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:

• With an excellent Return On Assets value of 10.34%, ESNT belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
• ESNT has a better Return On Invested Capital (10.90%) than 84.69% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ESNT is significantly above the industry average of 7.93%.
• ESNT has a better Profit Margin (60.15%) than 95.92% of its industry peers.
• ESNT has a Operating Margin of 73.36%. This is amongst the best in the industry. ESNT outperforms 93.88% of its industry peers.

A Closer Look at Health for NYSE:ESNT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ESNT scores a 9 out of 10:

• An Altman-Z score of 4.03 indicates that ESNT is not in any danger for bankruptcy at the moment.
• ESNT's Altman-Z score of 4.03 is amongst the best of the industry. ESNT outperforms 86.73% of its industry peers.
• ESNT has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of all of its debts.
• ESNT has a better Debt to FCF ratio (0.59) than 85.71% of its industry peers.
• ESNT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
• ESNT has a Debt to Equity ratio of 0.09. This is amongst the best in the industry. ESNT outperforms 82.65% of its industry peers.
• A Current Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
• ESNT has a better Current ratio (2.88) than 81.63% of its industry peers.
• A Quick Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
• ESNT has a Quick ratio of 2.88. This is amongst the best in the industry. ESNT outperforms 82.65% of its industry peers.

Evaluating Growth: 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 a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.75%, which is quite good.
• Looking at the last year, ESNT shows a quite strong growth in Revenue. The Revenue has grown by 17.53% in the last year.
• The Revenue has been growing by 9.06% on average over the past years. This is quite good.

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

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

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.