ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
64.67 USD
+0.73 (+1.14%)
64.67 USD
0 (0%)
Taking everything into account, ESNT scores 6 out of 10 in our fundamental rating. ESNT was compared to 98 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making ESNT a very profitable company, without any liquidiy or solvency issues. ESNT is valued correctly, but it does not seem to be growing.
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.
In the past 5 years ESNT has always been profitable.
Each year in the past 5 years ESNT had a positive operating cash flow.
1.2 Ratios
ESNT has a better Return On Assets (9.56%) than 87.76% of its industry peers.
Looking at the Return On Equity, with a value of 12.25%, ESNT is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
ESNT's Return On Invested Capital of 10.25% is amongst the best of the industry. ESNT outperforms 82.65% of its industry peers.
ESNT had an Average Return On Invested Capital over the past 3 years of 12.56%. This is above the industry average of 8.44%.
| 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
With an excellent Profit Margin value of 55.63%, ESNT belongs to the best of the industry, outperforming 94.90% of the companies in the same industry.
In the last couple of years the Profit Margin of ESNT has declined.
Looking at the Operating Margin, with a value of 68.46%, ESNT belongs to the top of the industry, outperforming 92.86% 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 | 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
ESNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ESNT has been reduced compared to 1 year ago.
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
An Altman-Z score of 3.89 indicates that ESNT is not in any danger for bankruptcy at the moment.
ESNT's Altman-Z score of 3.89 is amongst the best of the industry. ESNT outperforms 86.73% of its industry peers.
ESNT has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of all of its debts.
ESNT's Debt to FCF ratio of 0.59 is amongst the best of the industry. ESNT outperforms 84.69% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
The Debt to Equity ratio of ESNT (0.09) is better than 76.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.89 |
ROIC/WACC1.22
WACC8.41%
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.
The Current ratio of ESNT (2.63) is better than 81.63% of its industry peers.
A Quick Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a better Quick ratio (2.63) than 83.67% 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.
ESNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.45% yearly.
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
ESNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
The Revenue is expected to grow by 2.06% on average over the next years.
EPS Next Y4.45%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
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 accelerating.
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
A Price/Earnings ratio of 9.41 indicates a reasonable valuation of ESNT.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than 65.31% of the companies in the same industry.
ESNT is valuated cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.65, which indicates a very decent 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 65.31% 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 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.41 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 86.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 7.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ESNT may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)2.42
EPS Next 2Y4.56%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 1.91%. 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 2.35.
Compared to an average S&P500 Dividend Yield of 1.94, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 2Y4.56%
EPS Next 3Y5.31%
64.67
+0.73 (+1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change0%
Ins Owners3.55%
Ins Owner Change-1.45%
Market Cap6.25B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price Target68.85 (6.46%)
Short Float %1.98%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP17.35%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)0.37%
PT rev (3m)1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.41 | ||
| Fwd PE | 8.65 | ||
| P/S | 4.95 | ||
| P/FCF | 7.47 | ||
| P/OCF | 7.32 | ||
| P/B | 1.09 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)6.87
EY10.62%
EPS(NY)7.48
Fwd EY11.56%
FCF(TTM)8.66
FCFY13.38%
OCF(TTM)8.83
OCFY13.66%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)2.12
PEG (5Y)2.42
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 | 3.89 |
F-Score5
WACC8.41%
ROIC/WACC1.22
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 Y4.45%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue 1Y (TTM)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
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.
Can you provide the valuation status for ESSENT GROUP LTD?
ChartMill assigns a valuation rating of 6 / 10 to ESSENT GROUP LTD (ESNT). This can be considered as Fairly Valued.
What is the profitability of ESNT stock?
ESSENT GROUP LTD (ESNT) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ESSENT GROUP LTD (ESNT) stock?
The Price/Earnings (PE) ratio for ESSENT GROUP LTD (ESNT) is 9.41 and the Price/Book (PB) ratio is 1.09.
Is the dividend of ESSENT GROUP LTD sustainable?
The dividend rating of ESSENT GROUP LTD (ESNT) is 5 / 10 and the dividend payout ratio is 17.35%.