ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - NYSE:ESNT - BMG3198U1027 - Common Stock
62.5 USD
+0.89 (+1.44%)
62.5 USD
0 (0%)
Overall ESNT gets a fundamental rating of 7 out of 10. We evaluated ESNT against 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 quite cheap, while showing a decent growth score. This is a good combination! These ratings would make ESNT suitable 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.
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
ESNT's Return On Assets of 9.90% is amongst the best of the industry. ESNT outperforms 87.88% 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 65.66% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.54%, ESNT belongs to the top of the industry, outperforming 84.85% 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 8.14%.
| 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
The Profit Margin of ESNT (56.36%) is better than 96.97% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 69.12%, ESNT belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESNT is creating some value.
The number of shares outstanding for ESNT has been reduced compared to 1 year ago.
The number of shares outstanding for ESNT has been increased compared to 5 years ago.
Compared to 1 year ago, ESNT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.96 indicates that ESNT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, ESNT belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.58, ESNT belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
ESNT has a better Debt to Equity ratio (0.09) than 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.96 |
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.
With an excellent Current ratio value of 3.13, ESNT belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
A Quick Ratio of 3.13 indicates that ESNT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.13, ESNT belongs to the best of the industry, outperforming 83.84% of the companies in the same industry.
| 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 -0.43%.
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.
Measured over the past years, ESNT shows a small growth in Revenue. The Revenue has been growing by 7.45% on average per year.
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
Based on estimates for the next years, ESNT will show a small growth in Earnings Per Share. The EPS will grow by 5.28% on average per year.
ESNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.81% yearly.
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
ESNT is valuated reasonably with a Price/Earnings ratio of 9.10.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESNT to the average of the S&P500 Index (25.07), we can say ESNT is valued rather cheaply.
The Price/Forward Earnings ratio is 8.30, which indicates a very decent valuation of ESNT.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 64.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESNT to the average of the S&P500 Index (34.08), we can say ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
79.80% 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 cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | 7.34 |
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)1.38
PEG (5Y)2.33
EPS Next 2Y4.89%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.68, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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.
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
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%
62.5
+0.89 (+1.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.94%
Inst Owner Change-3.65%
Ins Owners3.52%
Ins Owner Change-1.26%
Market Cap6.16B
Revenue(TTM)1.24B
Net Income(TTM)714.85M
Analysts77.14
Price Target68.85 (10.16%)
Short Float %1.95%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)0.84%
EPS NY rev (1m)0%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 8.3 | ||
| P/S | 4.86 | ||
| P/FCF | 7.2 | ||
| P/OCF | 7.1 | ||
| P/B | 1.09 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)6.87
EY10.99%
EPS(NY)7.53
Fwd EY12.04%
FCF(TTM)8.68
FCFY13.88%
OCF(TTM)8.8
OCFY14.08%
SpS12.87
BVpS57.57
TBVpS56.77
PEG (NY)1.38
PEG (5Y)2.33
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 | 3.96 |
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 9.1 and the Price/Book (PB) ratio is 1.09.
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%.