ESSENT GROUP LTD (ESNT)
BMG3198U1027 - Common Stock
Taking everything into account, ESNT scores 7 out of 10 in our fundamental rating. ESNT was compared to 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. ESNT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ESNT suitable 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.
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
The Return On Assets of ESNT (11.04%) is better than 92.00% of its industry peers.
ESNT has a Return On Equity of 13.73%. This is in the better half of the industry: ESNT outperforms 63.00% of its industry peers.
The Return On Invested Capital of ESNT (11.52%) is better than 87.00% 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 7.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.04% | ||
| ROE | 13.73% | ||
| ROIC | 11.52% |
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 61.32%. 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.
Looking at the Operating Margin, with a value of 74.46%, ESNT belongs to the top of the industry, outperforming 94.00% 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 | 74.46% | ||
| PM (TTM) | 61.32% | ||
| 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.
ESNT has less shares outstanding than it did 1 year ago.
ESNT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESNT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.35 indicates that ESNT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.35, ESNT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Debt to FCF ratio of ESNT is 0.52, which is an excellent value as it means it would take ESNT, only 0.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ESNT (0.52) is better than 86.00% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that ESNT is not too dependend on debt financing.
ESNT has a better Debt to Equity ratio (0.08) than 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.33
WACC8.69%
2.3 Liquidity
ESNT has a Current Ratio of 4.01. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
ESNT has a Current ratio of 4.01. This is amongst the best in the industry. ESNT outperforms 90.00% of its industry peers.
ESNT has a Quick Ratio of 4.01. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
ESNT has a Quick ratio of 4.01. This is amongst the best in the industry. ESNT outperforms 91.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.01 | ||
| Quick Ratio | 4.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.75% over the past year.
ESNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.08% yearly.
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.
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
ESNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.15% yearly.
ESNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.72% yearly.
EPS Next Y10.78%
EPS Next 2Y5.74%
EPS Next 3Y5.15%
EPS Next 5YN/A
Revenue Next Year13.38%
Revenue Next 2Y9.33%
Revenue Next 3Y7.72%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.08, which indicates a very decent valuation of ESNT.
Based on the Price/Earnings ratio, ESNT is valued cheaper than 84.00% of the companies in the same industry.
ESNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.76.
With a Price/Forward Earnings ratio of 7.67, the valuation of ESNT can be described as very cheap.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 79.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESNT to the average of the S&P500 Index (23.90), we can say ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
89.00% 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 83.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
ESNT's 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)0.75
PEG (5Y)1.33
EPS Next 2Y5.74%
EPS Next 3Y5.15%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.58, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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
ESNT pays out 15.18% 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.
DP15.18%
EPS Next 2Y5.74%
EPS Next 3Y5.15%
ESSENT GROUP LTD
NYSE:ESNT (11/7/2024, 10:06:48 AM)
55.75
-0.68 (-1.21%)
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 Cap5.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 8.08 | ||
| Fwd PE | 7.67 | ||
| 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)0.75
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.04% | ||
| ROE | 13.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 74.46% | ||
| PM (TTM) | 61.32% | ||
| 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 Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.01 | ||
| Quick Ratio | 4.01 | ||
| 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 Y10.78%
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