ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
NYSE:ESNT - New York Stock Exchange, Inc. - BMG3198U1027 - Common Stock
Overall ESNT gets a fundamental rating of 7 out of 10. We evaluated ESNT against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
ESNT had positive earnings in each of the past 5 years.
In the past 5 years ESNT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ESNT (10.34%) is better than 90.10% of its industry peers.
ESNT's Return On Equity of 13.06% is in line compared to the rest of the industry. ESNT outperforms 57.43% of its industry peers.
ESNT has a better Return On Invested Capital (10.90%) than 85.15% of its industry peers.
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 better Profit Margin (60.15%) than 96.04% of its industry peers.
In the last couple of years the Profit Margin of ESNT has remained more or less at the same level.
ESNT has a Operating Margin of 73.36%. This is amongst the best in the industry. ESNT outperforms 94.06% 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
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.
The debt/assets ratio for ESNT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.02 indicates that ESNT is not in any danger for bankruptcy at the moment.
The Altman-Z score of ESNT (4.02) is better than 87.13% 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.
With an excellent Debt to FCF ratio value of 0.59, ESNT belongs to the best of the industry, outperforming 86.14% 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 belongs to the top of the industry, outperforming 83.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.21
WACC9.02%
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 84.16% of its industry peers.
ESNT has a Quick Ratio of 2.88. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.88, ESNT belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
| 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.
Looking at the last year, ESNT shows a quite strong growth in Revenue. The Revenue has grown by 17.53% in the last year.
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
ESNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.84% yearly.
Based on estimates for the next years, ESNT will show a small growth in Revenue. The Revenue will grow by 7.37% on average per year.
EPS Next Y8.63%
EPS Next 2Y4.22%
EPS Next 3Y4.14%
EPS Next 5Y4.84%
Revenue Next Year13.11%
Revenue Next 2Y8.88%
Revenue Next 3Y7.46%
Revenue Next 5Y7.37%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ESNT is valuated reasonably with a Price/Earnings ratio of 8.39.
Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 79.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ESNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.20, the valuation of ESNT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 73.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 8.2 |
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 86.14% 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 89.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.3 | ||
| EV/EBITDA | 7.22 |
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)0.97
PEG (5Y)1.38
EPS Next 2Y4.22%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, ESNT has a reasonable but not impressive dividend return.
ESNT's Dividend Yield is a higher than the industry average which is at 3.66.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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
15.62% 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.
DP15.62%
EPS Next 2Y4.22%
EPS Next 3Y4.14%
ESSENT GROUP LTD
NYSE:ESNT (1/21/2025, 8:04:00 PM)
After market: 57.87 0 (0%)57.87
+0.16 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.35%
Inst Owner Change-0.01%
Ins Owners3.19%
Ins Owner Change-0.01%
Market Cap6.15B
Analysts81.25
Price Target66.53 (14.96%)
Short Float %1.46%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend0.99
Dividend Growth(5Y)42.06%
DP15.62%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)-0.51%
PT rev (3m)-2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)0%
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 | 8.39 | ||
| Fwd PE | 8.2 | ||
| P/S | 5.02 | ||
| P/FCF | 7.3 | ||
| P/OCF | 7.23 | ||
| P/B | 1.09 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.22 |
EPS(TTM)6.9
EY11.92%
EPS(NY)7.06
Fwd EY12.2%
FCF(TTM)7.93
FCFY13.7%
OCF(TTM)8.01
OCFY13.83%
SpS11.54
BVpS53.11
TBVpS52.45
PEG (NY)0.97
PEG (5Y)1.38
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 | 4.02 |
F-Score5
WACC9.02%
ROIC/WACC1.21
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 5Y4.84%
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 5Y7.37%
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%