ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
NYSE:ESNT - New York Stock Exchange, Inc. - BMG3198U1027 - Common Stock - Currency: USD
ESNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. ESNT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ESNT is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ESNT a good candidate 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.
ESNT had positive earnings in each of the past 5 years.
ESNT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.34%, ESNT belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
The Return On Equity of ESNT (13.06%) is comparable to the rest of the industry.
The Return On Invested Capital of ESNT (10.98%) is better than 85.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESNT is above the industry average of 7.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 13.06% | ||
| ROIC | 10.98% |
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
The Profit Margin of ESNT (60.15%) is better than 96.04% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
ESNT's Operating Margin of 73.36% is amongst the best of 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 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 below the Cost of Capital (WACC), which means it is destroying value.
ESNT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ESNT has been increased compared to 5 years ago.
The debt/assets ratio for ESNT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.94 indicates that ESNT is not in any danger for bankruptcy at the moment.
ESNT has a better Altman-Z score (3.94) than 86.14% 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.
ESNT has a Debt to FCF ratio of 0.59. This is amongst the best in the industry. ESNT outperforms 87.13% 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's Debt to Equity ratio of 0.09 is amongst the best of the industry. ESNT outperforms 84.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.94 |
ROIC/WACC0.72
WACC15.34%
2.3 Liquidity
ESNT has a Current Ratio of 2.88. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.88, ESNT belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
A Quick Ratio of 2.88 indicates that ESNT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.88, ESNT belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
ESNT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.23%.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
ESNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.01%.
The Revenue has been growing slightly by 7.45% on average over the past years.
EPS 1Y (TTM)5.23%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-3.66%
Revenue 1Y (TTM)12.01%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%5.97%
3.2 Future
The Earnings Per Share is expected to grow by 3.73% on average over the next years.
Based on estimates for the next years, ESNT will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y2%
EPS Next 2Y3.39%
EPS Next 3Y3.73%
EPS Next 5YN/A
Revenue Next Year3.55%
Revenue Next 2Y4.36%
Revenue Next 3Y4.55%
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 stable.
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 8.21 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 79.21% of the companies listed in the same industry.
ESNT is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.05, the valuation of ESNT can be described as reasonable.
77.23% of the companies in the same industry are more expensive than ESNT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ESNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
88.12% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 89.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ESNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.1
PEG (5Y)2.11
EPS Next 2Y3.39%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, ESNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of ESNT is nicely growing with an annual growth rate of 42.06%!
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)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.
ESNT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.62%
EPS Next 2Y3.39%
EPS Next 3Y3.73%
56.17
+0.08 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.35%
Inst Owner Change-1.56%
Ins Owners3.19%
Ins Owner Change0.92%
Market Cap5.97B
Analysts80
Price Target65.28 (16.22%)
Short Float %1.76%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)-2.38%
PT rev (3m)-7.73%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 8.05 | ||
| P/S | 4.87 | ||
| P/FCF | 7.08 | ||
| P/OCF | 7.02 | ||
| P/B | 1.06 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 7.01 |
EPS(TTM)6.84
EY12.18%
EPS(NY)6.98
Fwd EY12.42%
FCF(TTM)7.93
FCFY14.12%
OCF(TTM)8.01
OCFY14.25%
SpS11.54
BVpS53.11
TBVpS52.45
PEG (NY)4.1
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 13.06% | ||
| ROCE | 12.92% | ||
| ROIC | 10.98% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 11.44% | ||
| OM | 73.36% | ||
| PM (TTM) | 60.15% | ||
| GM | N/A | ||
| FCFM | 68.73% |
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-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 | 3.94 |
F-Score5
WACC15.34%
ROIC/WACC0.72
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.23%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-3.66%
EPS Next Y2%
EPS Next 2Y3.39%
EPS Next 3Y3.73%
EPS Next 5YN/A
Revenue 1Y (TTM)12.01%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%5.97%
Revenue Next Year3.55%
Revenue Next 2Y4.36%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
EBIT growth 1Y9.44%
EBIT growth 3Y2.36%
EBIT growth 5Y5.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.13%
OCF growth 3YN/A
OCF growth 5YN/A