ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
65.82 USD
+0.01 (+0.02%)
65.82 USD
0 (0%)
Taking everything into account, ESNT scores 6 out of 10 in our fundamental rating. ESNT was compared to 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 is valued correctly, but it does not seem to be growing.
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.
In the past 5 years ESNT has always been profitable.
ESNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.56%, ESNT belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
ESNT has a better Return On Equity (12.25%) than 66.67% of its industry peers.
With an excellent Return On Invested Capital value of 10.25%, ESNT belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESNT is above the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 12.25% | ||
| ROIC | 10.25% |
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 (55.63%) is better than 94.95% of its industry peers.
In the last couple of years the Profit Margin of ESNT has declined.
Looking at the Operating Margin, with a value of 68.46%, ESNT belongs to the top of the industry, outperforming 92.93% 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 | 68.46% | ||
| PM (TTM) | 55.63% | ||
| 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
Compared to 5 years ago, ESNT has more shares outstanding
Compared to 1 year ago, ESNT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.95 indicates that ESNT is not in any danger for bankruptcy at the moment.
ESNT's Altman-Z score of 3.95 is amongst the best of the industry. ESNT outperforms 87.88% 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 better Debt to FCF ratio (0.59) than 83.84% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
ESNT's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. ESNT outperforms 76.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.22
WACC8.41%
2.3 Liquidity
ESNT has a Current Ratio of 2.63. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
ESNT has a better Current ratio (2.63) than 79.80% of its industry peers.
A Quick Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a Quick ratio of 2.63. This is amongst the best in the industry. ESNT outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
ESNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.43%.
Measured over the past 5 years, ESNT shows a small growth in Earnings Per Share. The EPS has been growing by 3.90% on average per year.
Looking at the last year, ESNT shows a small growth in Revenue. The Revenue has grown by 3.13% in the last year.
The Revenue has been growing slightly by 7.45% on average over the past years.
EPS 1Y (TTM)-0.43%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.21%
Revenue 1Y (TTM)3.13%
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 5.19% yearly.
ESNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
EPS Next Y4.45%
EPS Next 2Y4.48%
EPS Next 3Y5.19%
EPS Next 5YN/A
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
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.
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
With a Price/Earnings ratio of 9.58, the valuation of ESNT can be described as very reasonable.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than 65.66% of the companies in the same industry.
ESNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 8.82, the valuation of ESNT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 62.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. ESNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued a bit cheaper than 76.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 85.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 7.77 |
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)2.16
PEG (5Y)2.46
EPS Next 2Y4.48%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, ESNT has a reasonable but not impressive dividend return.
ESNT's Dividend Yield is a higher than the industry average which is at 2.43.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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.
As ESNT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)30.2%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
17.35% 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.
DP17.35%
EPS Next 2Y4.48%
EPS Next 3Y5.19%
65.82
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change-3.71%
Ins Owners3.55%
Ins Owner Change-1.38%
Market Cap6.36B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price TargetN/A
Short Float %2.27%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP17.35%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.32%
Min EPS beat(2)-7.67%
Max EPS beat(2)10.31%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-7.67%
Max EPS beat(4)10.31%
EPS beat(8)5
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)1.24%
EPS beat(16)12
Avg EPS beat(16)9.22%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.56%
Revenue beat(4)1
Avg Revenue beat(4)-1.48%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)4
Avg Revenue beat(12)-0.8%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)-0.37%
PT rev (3m)1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-2%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.82 | ||
| P/S | 5.04 | ||
| P/FCF | 7.6 | ||
| P/OCF | 7.45 | ||
| P/B | 1.11 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)6.87
EY10.44%
EPS(NY)7.47
Fwd EY11.34%
FCF(TTM)8.66
FCFY13.15%
OCF(TTM)8.83
OCFY13.42%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)2.16
PEG (5Y)2.46
Graham Number95.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 12.25% | ||
| ROCE | 12.07% | ||
| ROIC | 10.25% | ||
| ROICexc | 10.39% | ||
| ROICexgc | 10.68% | ||
| OM | 68.46% | ||
| PM (TTM) | 55.63% | ||
| GM | N/A | ||
| FCFM | 66.22% |
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-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 313.22% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 27.68 | ||
| Cash Conversion | 98.08% | ||
| Profit Quality | 119.04% | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 3.95 |
F-Score5
WACC8.41%
ROIC/WACC1.22
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 Y4.45%
EPS Next 2Y4.48%
EPS Next 3Y5.19%
EPS Next 5YN/A
Revenue 1Y (TTM)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
Revenue Next 5YN/A
EBIT growth 1Y-3.75%
EBIT growth 3Y2.36%
EBIT growth 5Y5.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.78%
FCF growth 3Y6.12%
FCF growth 5Y7.57%
OCF growth 1Y18.6%
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 6 / 10 to ESNT.
What is the valuation status of ESSENT GROUP LTD (ESNT) stock?
ChartMill assigns a valuation rating of 6 / 10 to ESSENT GROUP LTD (ESNT). This can be considered as Fairly Valued.
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 9.58 and the Price/Book (PB) ratio is 1.11.
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 17.35%.