ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
NYSE:ESNT - New York Stock Exchange, Inc. - BMG3198U1027 - Common Stock - Currency: USD
ESNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. ESNT has an excellent financial health rating, but there are some minor concerns on its profitability. ESNT is valued quite cheap, while showing a decent growth score. This is a good combination! This makes ESNT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ESNT was profitable.
ESNT had a positive operating cash flow in the past year.
Each year in the past 5 years ESNT has been profitable.
ESNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.04%, ESNT belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.78%, ESNT is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.68%, ESNT belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ESNT is in line with the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 12.78% | ||
| ROIC | 10.68% |
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
ESNT has a better Profit Margin (57.29%) than 97.00% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
ESNT has a Operating Margin of 70.07%. This is amongst the best in the industry. ESNT outperforms 93.00% 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 | 70.07% | ||
| PM (TTM) | 57.29% | ||
| 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
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
Compared to 5 years ago, ESNT has more shares outstanding
ESNT has a worse debt/assets ratio than last year.
2.2 Solvency
ESNT has an Altman-Z score of 3.77. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.77, ESNT belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
ESNT has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
ESNT has a Debt to FCF ratio of 0.58. This is amongst the best in the industry. ESNT outperforms 88.00% 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.
ESNT has a Debt to Equity ratio of 0.09. This is in the better half of the industry: ESNT outperforms 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.23
WACC8.7%
2.3 Liquidity
A Current Ratio of 2.85 indicates that ESNT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.85, ESNT belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
A Quick Ratio of 2.85 indicates that ESNT has no problem at all paying its short term obligations.
ESNT's Quick ratio of 2.85 is amongst the best of the industry. ESNT outperforms 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past year.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
The Revenue has grown by 9.57% in the past year. This is quite good.
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)3.33%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-0.59%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%6.44%
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 4.09% on average per year.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y2.69%
EPS Next 2Y4.13%
EPS Next 3Y4.09%
EPS Next 5YN/A
Revenue Next Year3.39%
Revenue Next 2Y3.49%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.18, the valuation of ESNT can be described as reasonable.
ESNT's Price/Earnings ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 79.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. ESNT is valued rather cheaply when compared to this.
ESNT is valuated cheaply with a Price/Forward Earnings ratio of 7.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.06. ESNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
ESNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ESNT is cheaper than 85.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.64 | ||
| EV/EBITDA | 6.67 |
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)3.04
PEG (5Y)2.1
EPS Next 2Y4.13%
EPS Next 3Y4.09%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.18%. 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 4.86.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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
16.61% 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.
DP16.61%
EPS Next 2Y4.13%
EPS Next 3Y4.09%
55.88
+0.17 (+0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.08%
Inst Owner Change0%
Ins Owners3.44%
Ins Owner Change0.52%
Market Cap5.67B
Analysts81.33
Price Target66.01 (18.13%)
Short Float %1.8%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP16.61%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.8%
Min EPS beat(2)-5.88%
Max EPS beat(2)0.29%
EPS beat(4)2
Avg EPS beat(4)-0.12%
Min EPS beat(4)-6.37%
Max EPS beat(4)11.47%
EPS beat(8)6
Avg EPS beat(8)1.7%
EPS beat(12)9
Avg EPS beat(12)5.05%
EPS beat(16)13
Avg EPS beat(16)11.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)0.34%
Revenue beat(8)3
Avg Revenue beat(8)0.35%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)9
Avg Revenue beat(16)1.61%
PT rev (1m)0%
PT rev (3m)1.12%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0.78%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.53 | ||
| P/S | 4.49 | ||
| P/FCF | 6.64 | ||
| P/OCF | 6.54 | ||
| P/B | 1 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)6.83
EY12.22%
EPS(NY)7.42
Fwd EY13.27%
FCF(TTM)8.42
FCFY15.07%
OCF(TTM)8.54
OCFY15.29%
SpS12.45
BVpS55.81
TBVpS55.03
PEG (NY)3.04
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 12.78% | ||
| ROCE | 12.57% | ||
| ROIC | 10.68% | ||
| ROICexc | 11.01% | ||
| ROICexgc | 11.34% | ||
| OM | 70.07% | ||
| PM (TTM) | 57.29% | ||
| GM | N/A | ||
| FCFM | 67.64% |
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%
ROICexcg growth 3Y-3.89%
ROICexcg 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-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 216.84% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 35.08 | ||
| Cash Conversion | 97.31% | ||
| Profit Quality | 118.05% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 3.77 |
F-Score4
WACC8.7%
ROIC/WACC1.23
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)3.33%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-0.59%
EPS Next Y2.69%
EPS Next 2Y4.13%
EPS Next 3Y4.09%
EPS Next 5YN/A
Revenue 1Y (TTM)9.57%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%6.44%
Revenue Next Year3.39%
Revenue Next 2Y3.49%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
EBIT growth 1Y2.05%
EBIT growth 3Y2.36%
EBIT growth 5Y5.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y44.86%
FCF growth 3Y6.12%
FCF growth 5Y7.57%
OCF growth 1Y46.06%
OCF growth 3Y6.7%
OCF growth 5Y7.87%