NYSE:ESNT, an undervalued stock with good fundamentals.

Uncover the hidden value in ESSENT GROUP LTD (NYSE:ESNT) as our stock screening tool recommends it as an undervalued choice. NYSE:ESNT maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

What does the Valuation looks like 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:

• A Price/Earnings ratio of 7.90 indicates a rather cheap valuation of ESNT.
• 79.80% of the companies in the same industry are more expensive than ESNT, based on the Price/Earnings ratio.
• ESNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
• Based on the Price/Forward Earnings ratio of 7.72, the valuation of ESNT can be described as very cheap.
• ESNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 75.76% of the companies 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 23.26.
• 86.87% 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 88.89% of the companies listed in the same industry.
• The 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

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ESNT was assigned a score of 7 for profitability:

• ESNT's Return On Assets of 10.34% is amongst the best of the industry. ESNT outperforms 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%.
• ESNT has a Profit Margin of 60.15%. This is amongst the best in the industry. ESNT outperforms 95.96% of its industry peers.
• ESNT has a better Operating Margin (73.36%) than 93.94% of its industry peers.

Assessing 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 3.87 indicates that ESNT is not in any danger for bankruptcy at the moment.
• ESNT's Altman-Z score of 3.87 is amongst the best of the industry. ESNT outperforms 86.87% of its industry peers.
• The Debt to FCF ratio of ESNT is 0.59, which is an excellent value as it means it would take ESNT, only 0.59 years of fcf income to pay off 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.
• With an excellent Debt to Equity ratio value of 0.09, ESNT belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
• ESNT has a Current Ratio of 2.88. This indicates that ESNT is financially healthy and has no problem in meeting 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.
• A Quick Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 2.88, ESNT belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.

Assessing Growth Metrics for 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:

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

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

Keep in mind

This article should in no way be interpreted as advice. 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.