ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
61.85 USD
+0.3 (+0.49%)
61.85 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ESNT. ESNT was compared to 98 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 is cheap, but on the other hand it scores bad on growth. With these ratings, ESNT could be worth investigating further 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
With an excellent Return On Assets value of 9.56%, ESNT belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
ESNT has a Return On Equity of 12.25%. This is in the better half of the industry: ESNT outperforms 66.33% of its industry peers.
The Return On Invested Capital of ESNT (10.25%) is better than 82.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESNT is above the industry average of 8.20%.
| 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
Looking at the Profit Margin, with a value of 55.63%, ESNT belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
In the last couple of years the Profit Margin of ESNT has declined.
The Operating Margin of ESNT (68.46%) is better than 92.86% 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 | 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.
The number of shares outstanding for ESNT has been increased compared to 5 years ago.
ESNT has a worse debt/assets ratio than last year.
2.2 Solvency
ESNT has an Altman-Z score of 3.80. 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 3.80, ESNT belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
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.
The Debt to FCF ratio of ESNT (0.59) is better 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.
ESNT's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. ESNT outperforms 76.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.23
WACC8.35%
2.3 Liquidity
ESNT has a Current Ratio of 2.63. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.63, ESNT is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
A Quick Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
ESNT's Quick ratio of 2.63 is amongst the best of the industry. ESNT outperforms 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
The earnings per share for ESNT have decreased by -0.43% in the last year.
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.
Looking at the last year, ESNT shows a small growth in Revenue. The Revenue has grown by 3.13% in the last year.
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
The Earnings Per Share is expected to grow by 5.28% on average over the next years.
Based on estimates for the next years, ESNT will show a small growth in Revenue. The Revenue will grow by 2.81% on average per year.
EPS Next Y6.57%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y1.84%
Revenue Next 3Y2.81%
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.
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
A Price/Earnings ratio of 9.00 indicates a reasonable valuation of ESNT.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than 67.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, ESNT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.22 indicates a reasonable 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 67.35% of the companies listed in the same industry.
ESNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 80.61% 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 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.15 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
ESNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ESNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)2.31
EPS Next 2Y4.89%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 1.97%.
Compared to an average industry Dividend Yield of 4.97, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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.
As ESNT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y4.89%
EPS Next 3Y5.28%
61.85
+0.3 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.94%
Inst Owner Change-3.71%
Ins Owners3.52%
Ins Owner Change-1.59%
Market Cap5.98B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price Target68.6 (10.91%)
Short Float %2.13%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP17.35%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)1.45%
PT rev (3m)1.45%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.22 | ||
| P/S | 4.73 | ||
| P/FCF | 7.15 | ||
| P/OCF | 7 | ||
| P/B | 1.04 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)6.87
EY11.11%
EPS(NY)7.53
Fwd EY12.17%
FCF(TTM)8.66
FCFY13.99%
OCF(TTM)8.83
OCFY14.28%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)1.37
PEG (5Y)2.31
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 | 3.8 |
F-Score5
WACC8.35%
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)-0.43%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.21%
EPS Next Y6.57%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
EPS Next 5YN/A
Revenue 1Y (TTM)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
Revenue Next Year2.13%
Revenue Next 2Y1.84%
Revenue Next 3Y2.81%
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.
What is the valuation status of ESSENT GROUP LTD (ESNT) stock?
ChartMill assigns a valuation rating of 7 / 10 to ESSENT GROUP LTD (ESNT). This can be considered as Undervalued.
What is the profitability of ESNT stock?
ESSENT GROUP LTD (ESNT) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ESNT stock?
The Price/Earnings (PE) ratio for ESSENT GROUP LTD (ESNT) is 9 and the Price/Book (PB) ratio is 1.04.
How sustainable is the dividend of ESSENT GROUP LTD (ESNT) stock?
The dividend rating of ESSENT GROUP LTD (ESNT) is 5 / 10 and the dividend payout ratio is 17.35%.