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 101 industry peers in the Financial Services industry. ESNT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ESNT is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ESNT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ESNT had positive earnings in the past year.
In the past year ESNT had a positive cash flow from operations.
In the past 5 years ESNT has always been profitable.
ESNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESNT has a better Return On Assets (10.26%) than 89.11% of its industry peers.
ESNT's Return On Equity of 13.02% is fine compared to the rest of the industry. ESNT outperforms 60.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.91%, ESNT belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
ESNT had an Average Return On Invested Capital over the past 3 years of 12.56%. This is in line with the industry average of 11.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 13.02% | ||
| ROIC | 10.91% |
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 Profit Margin of 58.69%. This is amongst the best in the industry. ESNT outperforms 96.04% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 71.67%, ESNT belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
ESNT's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 71.67% | ||
| PM (TTM) | 58.69% | ||
| 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) below the Cost of Capital (WACC), ESNT is destroying value.
Compared to 1 year ago, ESNT has less shares outstanding
ESNT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESNT has a worse debt to assets ratio.
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.
ESNT has a Altman-Z score of 3.77. This is amongst the best in the industry. ESNT outperforms 89.11% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.58, ESNT belongs to the top of the industry, outperforming 86.14% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.09, ESNT belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.73
WACC14.97%
2.3 Liquidity
A Current Ratio of 2.77 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a Current ratio of 2.77. This is amongst the best in the industry. ESNT outperforms 86.14% of its industry peers.
ESNT has a Quick Ratio of 2.77. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
ESNT's Quick ratio of 2.77 is amongst the best of the industry. ESNT outperforms 87.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
ESNT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.23%.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
The Revenue has grown by 12.01% in the past year. This is quite good.
The Revenue has been growing slightly by 7.45% on average over the past years.
EPS 1Y (TTM)5.23%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-3.66%
Revenue 1Y (TTM)12.01%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%5.97%
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 3.21% on average per year.
ESNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.26% yearly.
EPS Next Y1.47%
EPS Next 2Y2.93%
EPS Next 3Y3.21%
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y3.45%
Revenue Next 3Y3.26%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
ESNT is valuated reasonably with a Price/Earnings ratio of 8.05.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than the industry average as 75.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.63, ESNT is valued rather cheaply.
ESNT is valuated cheaply with a Price/Forward Earnings ratio of 7.94.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 70.30% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.85. ESNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
85.15% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
ESNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ESNT is cheaper than 86.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 6.6 |
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)5.46
PEG (5Y)2.07
EPS Next 2Y2.93%
EPS Next 3Y3.21%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.25%. 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 4.93.
Compared to an average S&P500 Dividend Yield of 2.51, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
ESNT pays out 16.18% of its income as dividend. This is a sustainable payout ratio.
The dividend of ESNT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.18%
EPS Next 2Y2.93%
EPS Next 3Y3.21%
NYSE:ESNT (4/22/2025, 2:32:53 PM)
55.095
+1.38 (+2.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.86%
Inst Owner Change0.2%
Ins Owners3.43%
Ins Owner Change0.47%
Market Cap5.69B
Analysts78.67
Price Target65.28 (18.49%)
Short Float %1.36%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP16.18%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.12%
Min EPS beat(2)-6.37%
Max EPS beat(2)-5.88%
EPS beat(4)2
Avg EPS beat(4)1%
Min EPS beat(4)-6.37%
Max EPS beat(4)11.47%
EPS beat(8)6
Avg EPS beat(8)2.63%
EPS beat(12)9
Avg EPS beat(12)10.82%
EPS beat(16)12
Avg EPS beat(16)11.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-1.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)-0.5%
Revenue beat(8)3
Avg Revenue beat(8)0.34%
Revenue beat(12)5
Avg Revenue beat(12)0.49%
Revenue beat(16)8
Avg Revenue beat(16)1.47%
PT rev (1m)0%
PT rev (3m)-1.87%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-4.03%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 7.94 | ||
| P/S | 4.58 | ||
| P/FCF | 6.74 | ||
| P/OCF | 6.61 | ||
| P/B | 1.02 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)6.84
EY12.41%
EPS(NY)6.94
Fwd EY12.6%
FCF(TTM)8.17
FCFY14.84%
OCF(TTM)8.34
OCFY15.13%
SpS12.03
BVpS54.22
TBVpS53.45
PEG (NY)5.46
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 13.02% | ||
| ROCE | 12.85% | ||
| ROIC | 10.91% | ||
| ROICexc | 11.12% | ||
| ROICexgc | 11.46% | ||
| OM | 71.67% | ||
| PM (TTM) | 58.69% | ||
| GM | N/A | ||
| FCFM | 67.97% |
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-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 289.92% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 51.8 | ||
| Cash Conversion | 96.09% | ||
| Profit Quality | 115.82% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 3.77 |
F-Score5
WACC14.97%
ROIC/WACC0.73
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)5.23%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-3.66%
EPS Next Y1.47%
EPS Next 2Y2.93%
EPS Next 3Y3.21%
EPS Next 5YN/A
Revenue 1Y (TTM)12.01%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%5.97%
Revenue Next Year2.13%
Revenue Next 2Y3.45%
Revenue Next 3Y3.26%
Revenue Next 5YN/A
EBIT growth 1Y4.41%
EBIT growth 3Y2.36%
EBIT growth 5Y5.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y11.3%
FCF growth 3Y6.12%
FCF growth 5Y7.57%
OCF growth 1Y12.91%
OCF growth 3Y6.7%
OCF growth 5Y7.87%