ESSENT GROUP LTD (ESNT)
BMG3198U1027 - Common Stock
ESNT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. ESNT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on ESNT. These ratings could make ESNT a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ESNT was profitable.
In the past year ESNT had a positive cash flow from operations.
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
ESNT's Return On Assets of 10.34% is amongst the best of the industry. ESNT outperforms 91.00% of its industry peers.
Looking at the Return On Equity, with a value of 13.06%, ESNT is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.90%, ESNT belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
ESNT had an Average Return On Invested Capital over the past 3 years of 13.02%. This is significantly above the industry average of 7.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 13.06% | ||
| ROIC | 10.9% |
ROA(3y)12.43%
ROA(5y)11.91%
ROE(3y)16.12%
ROE(5y)15.54%
ROIC(3y)13.02%
ROIC(5y)12.42%
1.3 Margins
ESNT has a Profit Margin of 60.15%. This is amongst the best in the industry. ESNT outperforms 96.00% of its industry peers.
ESNT's Profit Margin has been stable in the last couple of years.
ESNT's Operating Margin of 73.36% is amongst the best of the industry. ESNT outperforms 94.00% of its industry peers.
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 | 73.36% | ||
| PM (TTM) | 60.15% | ||
| GM | N/A |
OM growth 3Y13.93%
OM growth 5Y-0.03%
PM growth 3Y13.22%
PM growth 5Y-0.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ESNT is still creating some value.
Compared to 1 year ago, ESNT has less shares outstanding
ESNT has more shares outstanding than it did 5 years ago.
ESNT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.93 indicates that ESNT is not in any danger for bankruptcy at the moment.
ESNT has a better Altman-Z score (3.93) than 88.00% 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 86.00% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
ESNT's Debt to Equity ratio of 0.09 is amongst the best of the industry. ESNT outperforms 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.93 |
ROIC/WACC1.23
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a Current ratio of 2.88. This is amongst the best in the industry. ESNT outperforms 83.00% 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 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.75% over the past year.
The Earnings Per Share has been growing slightly by 6.08% on average over the past years.
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.
EPS 1Y (TTM)10.75%
EPS 3Y18.77%
EPS 5Y6.08%
EPS Q2Q%-0.6%
Revenue 1Y (TTM)17.53%
Revenue growth 3Y5.13%
Revenue growth 5Y9.06%
Sales Q2Q%6.91%
3.2 Future
Based on estimates for the next years, ESNT will show a small growth in Earnings Per Share. The EPS will grow by 4.67% on average per year.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y9.48%
EPS Next 2Y4.87%
EPS Next 3Y4.67%
EPS Next 5YN/A
Revenue Next Year13.11%
Revenue Next 2Y9.01%
Revenue Next 3Y7.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.11, which indicates a very decent valuation of ESNT.
Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 82.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. ESNT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.82 indicates a rather cheap valuation of ESNT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 75.00% of the companies listed in the same industry.
ESNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued cheaper than 88.00% of the companies 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 89.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.05 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
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.
PEG (NY)0.86
PEG (5Y)1.33
EPS Next 2Y4.87%
EPS Next 3Y4.67%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.01%. 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 3.55.
Compared to an average S&P500 Dividend Yield of 2.23, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of ESNT is nicely growing with an annual growth rate of 42.06%!
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 last 3 years.
Dividend Growth(5Y)42.06%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
15.62% of the earnings are spent on dividend by ESNT. This is a low number and sustainable payout ratio.
ESNT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.62%
EPS Next 2Y4.87%
EPS Next 3Y4.67%
ESSENT GROUP LTD
NYSE:ESNT (11/21/2024, 8:25:11 PM)
After market: 55.93 0 (0%)55.93
+0.22 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.86
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 13.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 73.36% | ||
| PM (TTM) | 60.15% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.75%
EPS 3Y18.77%
EPS 5Y
EPS Q2Q%
EPS Next Y9.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.53%
Revenue growth 3Y5.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y