NYSE:ESNT is an undervalued gem with solid fundamentals.

Our stock screener has singled out ESSENT GROUP LTD (NYSE:ESNT) as a stellar value proposition. NYSE:ESNT not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Assessment of 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 7.64, the valuation of ESNT can be described as very cheap.
• Based on the Price/Earnings ratio, ESNT is valued cheaper than 81.82% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.72. ESNT is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 7.44, the valuation of ESNT can be described as very cheap.
• Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 79.80% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.64, ESNT is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 87.88% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 91.92% of the companies listed 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.

Understanding NYSE:ESNT's Profitability

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 better Return On Assets (10.34%) than 89.90% of its industry peers.
• ESNT has a Return On Invested Capital of 10.90%. This is amongst the best in the industry. ESNT outperforms 84.85% of its industry peers.
• ESNT had an Average Return On Invested Capital over the past 3 years of 13.02%. This is significantly above the industry average of 7.84%.
• With an excellent Profit Margin value of 60.15%, ESNT belongs to the best of the industry, outperforming 95.96% of the companies in the same industry.
• ESNT has a Operating Margin of 73.36%. This is amongst the best in the industry. ESNT outperforms 93.94% of its industry peers.

Health Assessment of 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:

• An Altman-Z score of 3.80 indicates that ESNT is not in any danger for bankruptcy at the moment.
• ESNT's Altman-Z score of 3.80 is amongst the best of the industry. ESNT outperforms 86.87% 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.
• Looking at the Debt to FCF ratio, with a value of 0.59, ESNT belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
• 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 82.83% of its industry peers.
• A Current Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
• ESNT's Current ratio of 2.88 is amongst the best of the industry. ESNT outperforms 83.84% of its industry peers.
• ESNT has a Quick Ratio of 2.88. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 2.88, ESNT belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.

What does the Growth looks like for NYSE:ESNT

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:ESNT has earned a 5 for growth:

• 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.
• ESNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.53%.
• ESNT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.

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

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

Disclaimer

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.