ESSENT GROUP LTD (ESNT)
BMG3198U1027 - Common Stock
Overall ESNT gets a fundamental rating of 7 out of 10. We evaluated ESNT against 99 industry peers in the Financial Services industry. ESNT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ESNT may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ESNT could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
ESNT had positive earnings in the past year.
ESNT had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 10.34%, ESNT belongs to the top of the industry, outperforming 89.90% of the companies in the same industry.
ESNT's Return On Equity of 13.06% is in line compared to the rest of the industry. ESNT outperforms 56.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.90%, ESNT belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESNT is significantly above the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 13.06% | ||
| ROIC | 10.9% |
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 60.15%. This is amongst the best in the industry. ESNT outperforms 95.96% of its industry peers.
ESNT's Profit Margin has been stable in the last couple of years.
ESNT's Operating Margin of 73.36% is amongst the best of the industry. ESNT outperforms 93.94% 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 | 73.36% | ||
| PM (TTM) | 60.15% | ||
| 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.
Compared to 1 year ago, ESNT has less shares outstanding
ESNT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ESNT has been reduced compared to a year ago.
2.2 Solvency
ESNT has an Altman-Z score of 3.82. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT's Altman-Z score of 3.82 is amongst the best of the industry. ESNT outperforms 86.87% 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.
The Debt to FCF ratio of ESNT (0.59) is better than 85.86% 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.
With an excellent Debt to Equity ratio value of 0.09, ESNT belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.22
WACC8.97%
2.3 Liquidity
A Current Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
The Current ratio of ESNT (2.88) is better than 83.84% of its industry peers.
A Quick Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a better Quick ratio (2.88) than 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.88 |
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.
ESNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.53%.
Measured over the past years, ESNT shows a quite strong growth in Revenue. The Revenue has been growing by 9.06% on average per year.
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
Based on estimates for the next years, ESNT will show a small growth in Earnings Per Share. The EPS will grow by 4.14% on average per year.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y8.63%
EPS Next 2Y4.22%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year13.11%
Revenue Next 2Y8.88%
Revenue Next 3Y7.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.72, the valuation of ESNT can be described as very cheap.
Based on the Price/Earnings ratio, ESNT is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESNT to the average of the S&P500 Index (27.73), we can say ESNT is valued rather cheaply.
ESNT is valuated cheaply with a Price/Forward Earnings ratio of 7.54.
ESNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. ESNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
87.88% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
91.92% of the companies in the same industry are more expensive than ESNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | 6.68 |
4.3 Compensation for Growth
The 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)0.89
PEG (5Y)1.27
EPS Next 2Y4.22%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.76, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
On average, the dividend of ESNT grows each year by 42.06%, 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)42.06%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ESNT pays out 15.62% 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.
DP15.62%
EPS Next 2Y4.22%
EPS Next 3Y4.14%
ESSENT GROUP LTD
NYSE:ESNT (12/20/2024, 8:07:33 PM)
After market: 53.26 0 (0%)53.26
+0.35 (+0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.35%
Inst Owner Change-0.45%
Ins Owners3.19%
Ins Owner Change-0.07%
Market Cap5.66B
Analysts81.25
Price Target66.87 (25.55%)
Short Float %1.6%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Dividend Growth(5Y)42.06%
DP15.62%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.55%
Min EPS beat(2)-6.37%
Max EPS beat(2)11.47%
EPS beat(4)3
Avg EPS beat(4)2.74%
Min EPS beat(4)-6.37%
Max EPS beat(4)11.47%
EPS beat(8)6
Avg EPS beat(8)2.23%
EPS beat(12)10
Avg EPS beat(12)12.55%
EPS beat(16)12
Avg EPS beat(16)11.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)1.84%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)6
Avg Revenue beat(12)0.99%
Revenue beat(16)8
Avg Revenue beat(16)1.37%
PT rev (1m)-4.99%
PT rev (3m)-1.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 7.54 | ||
| P/S | 4.62 | ||
| P/FCF | 6.72 | ||
| P/OCF | 6.65 | ||
| P/B | 1 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 6.68 |
EPS(TTM)6.9
EY12.96%
EPS(NY)7.06
Fwd EY13.26%
FCF(TTM)7.93
FCFY14.89%
OCF(TTM)8.01
OCFY15.03%
SpS11.54
BVpS53.11
TBVpS52.45
PEG (NY)0.89
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 13.06% | ||
| ROCE | 12.92% | ||
| ROIC | 10.9% | ||
| ROICexc | 11.08% | ||
| ROICexgc | 11.36% | ||
| OM | 73.36% | ||
| PM (TTM) | 60.15% | ||
| GM | N/A | ||
| FCFM | 68.73% |
ROA(3y)12.43%
ROA(5y)11.91%
ROE(3y)16.12%
ROE(5y)15.54%
ROIC(3y)13.02%
ROIC(5y)12.42%
ROICexc(3y)13.24%
ROICexc(5y)12.65%
ROICexgc(3y)13.53%
ROICexgc(5y)12.87%
ROCE(3y)15.43%
ROCE(5y)14.72%
ROICexcg growth 3Y12.43%
ROICexcg growth 5Y-4.97%
ROICexc growth 3Y11.9%
ROICexc growth 5Y-5.27%
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
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 145.27% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 36.58 | ||
| Cash Conversion | 94.02% | ||
| Profit Quality | 114.28% | ||
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 3.82 |
F-Score5
WACC8.97%
ROIC/WACC1.22
Cap/Depr(3y)98.43%
Cap/Depr(5y)91.5%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.33%
Profit Quality(3y)94.33%
Profit Quality(5y)112.84%
High Growth Momentum
Growth
EPS 1Y (TTM)10.75%
EPS 3Y18.77%
EPS 5Y6.08%
EPS Q2Q%-0.6%
EPS Next Y8.63%
EPS Next 2Y4.22%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue 1Y (TTM)17.53%
Revenue growth 3Y5.13%
Revenue growth 5Y9.06%
Sales Q2Q%6.91%
Revenue Next Year13.11%
Revenue Next 2Y8.88%
Revenue Next 3Y7.46%
Revenue Next 5YN/A
EBIT growth 1Y9.44%
EBIT growth 3Y19.77%
EBIT growth 5Y9.02%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y39.35%
FCF growth 3Y1.52%
FCF growth 5Y4.09%
OCF growth 1Y39.95%
OCF growth 3Y1.58%
OCF growth 5Y4.06%