ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - NYSE:ESNT - BMG3198U1027 - Common Stock
65.48 USD
+1.93 (+3.04%)
65.48 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ESNT. ESNT was compared to 101 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 has a bad growth rate and is valued cheaply. These ratings would make ESNT suitable for value investing!
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.
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
ESNT has a Return On Assets of 9.90%. This is amongst the best in the industry. ESNT outperforms 88.12% of its industry peers.
Looking at the Return On Equity, with a value of 12.60%, ESNT is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
ESNT has a Return On Invested Capital of 10.54%. This is amongst the best in the industry. ESNT outperforms 86.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESNT is above the industry average of 7.65%.
| 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
ESNT has a better Profit Margin (56.36%) than 96.04% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 69.12%, ESNT belongs to the top of the industry, outperforming 93.07% 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 | 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
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
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 4.10. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT has a Altman-Z score of 4.10. This is amongst the best in the industry. ESNT outperforms 88.12% of its industry peers.
The Debt to FCF ratio of ESNT is 0.58, which is an excellent value as it means it would take ESNT, only 0.58 years of fcf income to pay off all of its debts.
ESNT has a Debt to FCF ratio of 0.58. This is amongst the best in the industry. ESNT outperforms 88.12% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.09, ESNT belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.26
WACC8.34%
2.3 Liquidity
A Current Ratio of 3.13 indicates that ESNT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.13, ESNT belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
ESNT has a Quick Ratio of 3.13. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
ESNT has a better Quick ratio (3.13) than 85.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
ESNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.87%.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
Looking at the last year, ESNT shows a small growth in Revenue. The Revenue has grown by 5.28% 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)-0.87%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.05%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%1.98%
3.2 Future
ESNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.12% 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 Y6.56%
EPS Next 2Y4.99%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year2.21%
Revenue Next 2Y1.84%
Revenue Next 3Y2.81%
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
A Price/Earnings ratio of 9.56 indicates a reasonable valuation of ESNT.
Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 76.24% of the companies listed in the same industry.
ESNT is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
ESNT is valuated reasonably with a Price/Forward Earnings ratio of 8.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 70.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 8.69 |
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 82.18% 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 84.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ESNT may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)2.45
EPS Next 2Y4.99%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 1.93%.
ESNT's Dividend Yield is a higher than the industry average which is at 4.86.
Compared to an average S&P500 Dividend Yield of 2.38, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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.
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
16.98% 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.
DP16.98%
EPS Next 2Y4.99%
EPS Next 3Y5.12%
65.48
+1.93 (+3.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change-0.91%
Ins Owners3.43%
Ins Owner Change0%
Market Cap6.45B
Analysts77.33
Price Target67.61 (3.25%)
Short Float %2.33%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)1.98%
PT rev (3m)2.43%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)3.77%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 8.69 | ||
| P/S | 5.09 | ||
| P/FCF | 7.55 | ||
| P/OCF | 7.44 | ||
| P/B | 1.14 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)6.85
EY10.46%
EPS(NY)7.54
Fwd EY11.51%
FCF(TTM)8.68
FCFY13.25%
OCF(TTM)8.8
OCFY13.44%
SpS12.87
BVpS57.57
TBVpS56.77
PEG (NY)1.46
PEG (5Y)2.45
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%
ROICexcg growth 3Y-3.89%
ROICexcg 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 | 4.1 |
F-Score4
WACC8.34%
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)-0.87%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.05%
EPS Next Y6.56%
EPS Next 2Y4.99%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue 1Y (TTM)5.28%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%1.98%
Revenue Next Year2.21%
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%