ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
60.62 USD
+1.78 (+3.03%)
60.62 USD
0 (0%)
ESNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. ESNT gets an excellent profitability rating and is at the same time showing great financial health properties. ESNT is valued quite cheap, but it does not seem to be growing. These ratings would make ESNT suitable 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.
- Each year in the past 5 years ESNT has been profitable.
- In the past 5 years ESNT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ESNT (9.56%) is better than 87.76% of its industry peers.
- ESNT has a better Return On Equity (12.25%) than 66.33% of its industry peers.
- ESNT has a Return On Invested Capital of 10.25%. This is amongst the best in 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
- ESNT's Profit Margin of 55.63% is amongst the best of the industry. ESNT outperforms 94.90% of its industry peers.
- In the last couple of years the Profit Margin of ESNT has declined.
- ESNT's Operating Margin of 68.46% is amongst the best of the industry. ESNT outperforms 92.86% of its industry peers.
- 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
- 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.
- Compared to 5 years ago, ESNT has more shares outstanding
- Compared to 1 year ago, ESNT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.77 indicates that ESNT is not in any danger for bankruptcy at the moment.
- ESNT has a Altman-Z score of 3.77. This is amongst the best in the industry. ESNT outperforms 84.69% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 0.59, ESNT belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
- ESNT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.09, ESNT is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.22
WACC8.41%
2.3 Liquidity
- A Current Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.63, ESNT belongs to the best of the industry, outperforming 80.61% of the companies in the same industry.
- ESNT has a Quick Ratio of 2.63. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of ESNT (2.63) is better than 82.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
- ESNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.43%.
- ESNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
- ESNT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.13%.
- The Revenue has been growing slightly by 7.45% on average over the past years.
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.
- ESNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
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.
- 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 8.82, the valuation of ESNT can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 68.37% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, ESNT is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of ESNT.
- ESNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 67.35% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. ESNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 8.11 |
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 81.63% 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 88.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | 7.2 |
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)1.98
PEG (5Y)2.26
EPS Next 2Y4.56%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
- ESNT has a Yearly Dividend Yield of 1.92%.
- ESNT's Dividend Yield is a higher than the industry average which is at 2.49.
- Compared to an average S&P500 Dividend Yield of 1.91, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
- The dividend of ESNT is nicely growing with an annual growth rate of 30.20%!
- 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.
- ESNT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.35%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
60.62
+1.78 (+3.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-11 2026-02-11/bmo
Inst Owners98.17%
Inst Owner Change0.11%
Ins Owners3.55%
Ins Owner Change-1.45%
Market Cap5.86B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts75.38
Price Target68.85 (13.58%)
Short Float %1.98%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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 | 8.82 | ||
| Fwd PE | 8.11 | ||
| P/S | 4.64 | ||
| P/FCF | 7 | ||
| P/OCF | 6.86 | ||
| P/B | 1.02 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)6.87
EY11.33%
EPS(NY)7.48
Fwd EY12.34%
FCF(TTM)8.66
FCFY14.28%
OCF(TTM)8.83
OCFY14.57%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)1.98
PEG (5Y)2.26
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 | 3.77 |
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 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.
What are the PE and PB ratios of ESSENT GROUP LTD (ESNT) stock?
The Price/Earnings (PE) ratio for ESSENT GROUP LTD (ESNT) is 8.82 and the Price/Book (PB) ratio is 1.02.
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%.