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

ESSENT GROUP LTD (NYSE:ESNT) was identified as a decent value stock by our stock screener. NYSE:ESNT scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Analysis for NYSE:ESNT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ESNT scores a 8 out of 10:

• Based on the Price/Earnings ratio of 8.44, 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 80.39% of the companies listed in the same industry.
• ESNT is valuated cheaply when we compare the Price/Earnings ratio to 28.46, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 8.26, the valuation of ESNT can be described as reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 72.55% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 92.87. 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 86.27% of the companies in the same industry.
• 88.24% of the companies in the same industry are more expensive than ESNT, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of ESNT may justify a higher PE ratio.

Assessing 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 10.34%. This is amongst the best in the industry. ESNT outperforms 90.20% of its industry peers.
• ESNT has a better Return On Invested Capital (10.90%) than 85.29% 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 7.89%.
• The Profit Margin of ESNT (60.15%) is better than 96.08% of its industry peers.
• Looking at the Operating Margin, with a value of 73.36%, ESNT belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.

Health Analysis 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 4.04 indicates that ESNT is not in any danger for bankruptcy at the moment.
• ESNT has a Altman-Z score of 4.04. This is amongst the best in the industry. ESNT outperforms 86.27% 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.
• The Debt to FCF ratio of ESNT (0.59) is better than 86.27% of its industry peers.
• A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
• ESNT has a Debt to Equity ratio of 0.09. This is amongst the best in the industry. ESNT outperforms 83.33% of its industry peers.
• A Current Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 2.88, ESNT belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
• A Quick Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.88, ESNT belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.

How We Gauge Growth 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:

• 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.
• The Revenue has grown by 17.53% in the past year. This is quite good.
• 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.

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

Keep in mind

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.