ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
63.63 USD
-0.53 (-0.83%)
ESNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making ESNT a very profitable company, without any liquidiy or solvency issues. ESNT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ESNT was profitable.
ESNT had a positive operating cash flow in the past year.
ESNT had positive earnings in each of the past 5 years.
In the past 5 years ESNT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.56%, ESNT belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
ESNT's Return On Equity of 12.25% is fine compared to the rest of the industry. ESNT outperforms 66.33% of its industry peers.
ESNT has a Return On Invested Capital of 10.25%. This is amongst the best in the industry. ESNT outperforms 82.65% of its industry peers.
ESNT had an Average Return On Invested Capital over the past 3 years of 12.56%. This is above the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 12.25% | ||
| ROIC | 10.25% |
ROA(3y)11.87%
ROA(5y)11.09%
ROE(3y)15.1%
ROE(5y)14.42%
ROIC(3y)12.56%
ROIC(5y)11.7%
1.3 Margins
The Profit Margin of ESNT (55.63%) is better than 94.90% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 68.46%, ESNT belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of ESNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 68.46% | ||
| PM (TTM) | 55.63% | ||
| GM | N/A |
OM growth 3Y-3.9%
OM growth 5Y-1.46%
PM growth 3Y-3.98%
PM growth 5Y-1.73%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESNT is creating some value.
The number of shares outstanding for ESNT has been reduced compared to 1 year ago.
Compared to 5 years ago, ESNT has more shares outstanding
Compared to 1 year ago, ESNT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.89 indicates that ESNT is not in any danger for bankruptcy at the moment.
ESNT's Altman-Z score of 3.89 is amongst the best of the industry. ESNT outperforms 85.71% 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 84.69% 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.
The Debt to Equity ratio of ESNT (0.09) is better than 76.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.89 |
ROIC/WACC1.22
WACC8.42%
2.3 Liquidity
A Current Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.63, ESNT belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
ESNT has a Quick Ratio of 2.63. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.63, ESNT belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
ESNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.43%.
Measured over the past 5 years, ESNT shows a small growth in Earnings Per Share. The EPS has been growing by 3.90% on average per year.
ESNT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.13%.
Measured over the past years, ESNT shows a small growth in Revenue. The Revenue has been growing by 7.45% on average per year.
EPS 1Y (TTM)-0.43%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.21%
Revenue 1Y (TTM)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
3.2 Future
ESNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
Based on estimates for the next years, ESNT will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
EPS Next Y4.45%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.26, the valuation of ESNT can be described as very reasonable.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than the industry average as 66.33% of the companies are valued more expensively.
ESNT is valuated cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.51, the valuation of ESNT can be described as reasonable.
64.29% of the companies in the same industry are more expensive than ESNT, based on the Price/Forward Earnings ratio.
ESNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 78.57% 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 86.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.35 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESNT does not grow enough to justify the current Price/Earnings ratio.
ESNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.08
PEG (5Y)2.38
EPS Next 2Y4.56%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
ESNT's Dividend Yield is a higher than the industry average which is at 2.35.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of ESNT grows each year by 30.20%, which is quite nice.
ESNT has been paying a dividend for over 5 years, so it has already some track record.
ESNT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)30.2%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
17.35% of the earnings are spent on dividend by ESNT. This is a low number and sustainable payout ratio.
The dividend of ESNT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.35%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
NYSE:ESNT (1/7/2026, 10:09:43 AM)
63.63
-0.53 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change0%
Ins Owners3.55%
Ins Owner Change-1.45%
Market Cap6.15B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price Target68.85 (8.2%)
Short Float %1.98%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP17.35%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.32%
Min EPS beat(2)-7.67%
Max EPS beat(2)10.31%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-7.67%
Max EPS beat(4)10.31%
EPS beat(8)5
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)1.24%
EPS beat(16)12
Avg EPS beat(16)9.22%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.56%
Revenue beat(4)1
Avg Revenue beat(4)-1.48%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)4
Avg Revenue beat(12)-0.8%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)0.37%
PT rev (3m)1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.51 | ||
| P/S | 4.87 | ||
| P/FCF | 7.35 | ||
| P/OCF | 7.21 | ||
| P/B | 1.07 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)6.87
EY10.8%
EPS(NY)7.48
Fwd EY11.75%
FCF(TTM)8.66
FCFY13.6%
OCF(TTM)8.83
OCFY13.88%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)2.08
PEG (5Y)2.38
Graham Number95.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 12.25% | ||
| ROCE | 12.07% | ||
| ROIC | 10.25% | ||
| ROICexc | 10.39% | ||
| ROICexgc | 10.68% | ||
| OM | 68.46% | ||
| PM (TTM) | 55.63% | ||
| GM | N/A | ||
| FCFM | 66.22% |
ROA(3y)11.87%
ROA(5y)11.09%
ROE(3y)15.1%
ROE(5y)14.42%
ROIC(3y)12.56%
ROIC(5y)11.7%
ROICexc(3y)12.79%
ROICexc(5y)11.91%
ROICexgc(3y)13.14%
ROICexgc(5y)12.18%
ROCE(3y)14.78%
ROCE(5y)13.78%
ROICexgc growth 3Y-3.89%
ROICexgc growth 5Y-5.69%
ROICexc growth 3Y-4.41%
ROICexc growth 5Y-6.08%
OM growth 3Y-3.9%
OM growth 5Y-1.46%
PM growth 3Y-3.98%
PM growth 5Y-1.73%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 313.22% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 27.68 | ||
| Cash Conversion | 98.08% | ||
| Profit Quality | 119.04% | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 3.89 |
F-Score5
WACC8.42%
ROIC/WACC1.22
Cap/Depr(3y)170.57%
Cap/Depr(5y)131.59%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.52%
Profit Quality(3y)98.38%
Profit Quality(5y)114.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.43%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.21%
EPS Next Y4.45%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue 1Y (TTM)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
Revenue Next 5YN/A
EBIT growth 1Y-3.75%
EBIT growth 3Y2.36%
EBIT growth 5Y5.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.78%
FCF growth 3Y6.12%
FCF growth 5Y7.57%
OCF growth 1Y18.6%
OCF growth 3Y6.7%
OCF growth 5Y7.87%
ESSENT GROUP LTD / ESNT FAQ
What is the ChartMill fundamental rating of ESSENT GROUP LTD (ESNT) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ESNT.
Can you provide the valuation status for ESSENT GROUP LTD?
ChartMill assigns a valuation rating of 6 / 10 to ESSENT GROUP LTD (ESNT). This can be considered as Fairly Valued.
What is the profitability of ESNT stock?
ESSENT GROUP LTD (ESNT) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ESSENT GROUP LTD (ESNT) stock?
The Price/Earnings (PE) ratio for ESSENT GROUP LTD (ESNT) is 9.26 and the Price/Book (PB) ratio is 1.07.
Is the dividend of ESSENT GROUP LTD sustainable?
The dividend rating of ESSENT GROUP LTD (ESNT) is 5 / 10 and the dividend payout ratio is 17.35%.