ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - NYSE:ESNT - BMG3198U1027 - Common Stock
61.42 USD
+0.22 (+0.36%)
61.42 USD
0 (0%)
Overall ESNT gets a fundamental rating of 7 out of 10. We evaluated ESNT against 97 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ESNT very considerable 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
ESNT has a Return On Assets of 9.90%. This is amongst the best in the industry. ESNT outperforms 87.63% of its industry peers.
ESNT has a better Return On Equity (12.60%) than 64.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.54%, ESNT belongs to the top of the industry, outperforming 84.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ESNT is above the industry average of 8.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.9% | ||
| ROE | 12.6% | ||
| ROIC | 10.54% |
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 56.36%, ESNT belongs to the top of the industry, outperforming 96.91% of the companies in the same industry.
ESNT's Profit Margin has declined in the last couple of years.
ESNT has a better Operating Margin (69.12%) than 92.78% 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 | 69.12% | ||
| PM (TTM) | 56.36% | ||
| 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.
Compared to 1 year ago, ESNT has less shares outstanding
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 3.94 indicates that ESNT is not in any danger for bankruptcy at the moment.
ESNT's Altman-Z score of 3.94 is amongst the best of the industry. ESNT outperforms 86.60% of its industry peers.
ESNT has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
ESNT's Debt to FCF ratio of 0.58 is amongst the best of the industry. ESNT outperforms 85.57% 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 has a better Debt to Equity ratio (0.09) than 81.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.94 |
ROIC/WACC1.26
WACC8.36%
2.3 Liquidity
A Current Ratio of 3.13 indicates that ESNT has no problem at all paying its short term obligations.
The Current ratio of ESNT (3.13) is better than 83.51% of its industry peers.
A Quick Ratio of 3.13 indicates that ESNT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.13, ESNT belongs to the top of the industry, outperforming 84.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The earnings per share for ESNT have decreased by -0.43% in the last year.
ESNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
The Revenue has grown by 12.00% in the past year. This is quite good.
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)12%
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 5.28% yearly.
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.
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 8.94 indicates a reasonable valuation of ESNT.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than the industry average as 68.04% of the companies are valued more expensively.
ESNT is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.16, the valuation of ESNT can be described as reasonable.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 65.98% of the companies 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.16 |
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 80.41% of the companies listed in the same industry.
ESNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ESNT is cheaper than 84.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 7.29 |
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)1.36
PEG (5Y)2.29
EPS Next 2Y4.89%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.02%. 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 4.50.
Compared to an average S&P500 Dividend Yield of 2.36, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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.
ESNT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)30.2%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ESNT pays out 16.98% of its income as dividend. This is a sustainable payout ratio.
ESNT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.98%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
61.42
+0.22 (+0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.94%
Inst Owner Change-1.47%
Ins Owners3.52%
Ins Owner Change-1.13%
Market Cap6.05B
Revenue(TTM)1.24B
Net Income(TTM)714.85M
Analysts77.14
Price Target68.85 (12.1%)
Short Float %2.08%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP16.98%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.3%
Min EPS beat(2)0.29%
Max EPS beat(2)10.31%
EPS beat(4)2
Avg EPS beat(4)-0.41%
Min EPS beat(4)-6.37%
Max EPS beat(4)10.31%
EPS beat(8)6
Avg EPS beat(8)2.43%
EPS beat(12)9
Avg EPS beat(12)2.55%
EPS beat(16)13
Avg EPS beat(16)11.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)0.34%
Revenue beat(8)3
Avg Revenue beat(8)0.45%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)1.48%
PT rev (1m)1.83%
PT rev (3m)3.85%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.72%
EPS NY rev (1m)0%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.16 | ||
| P/S | 4.77 | ||
| P/FCF | 7.08 | ||
| P/OCF | 6.98 | ||
| P/B | 1.07 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 7.29 |
EPS(TTM)6.87
EY11.19%
EPS(NY)7.53
Fwd EY12.25%
FCF(TTM)8.68
FCFY14.13%
OCF(TTM)8.8
OCFY14.33%
SpS12.87
BVpS57.57
TBVpS56.77
PEG (NY)1.36
PEG (5Y)2.29
Graham Number94.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.9% | ||
| ROE | 12.6% | ||
| ROCE | 12.41% | ||
| ROIC | 10.54% | ||
| ROICexc | 10.68% | ||
| ROICexgc | 11% | ||
| OM | 69.12% | ||
| PM (TTM) | 56.36% | ||
| GM | N/A | ||
| FCFM | 67.4% |
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-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 216.16% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 50.45 | ||
| Cash Conversion | 98.27% | ||
| Profit Quality | 119.58% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 | ||
| Altman-Z | 3.94 |
F-Score4
WACC8.36%
ROIC/WACC1.26
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)12%
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-2.27%
EBIT growth 3Y2.36%
EBIT growth 5Y5.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.14%
FCF growth 3Y6.12%
FCF growth 5Y7.57%
OCF growth 1Y24.32%
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 7 / 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 8.94 and the Price/Book (PB) ratio is 1.07.
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 16.98%.