ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
60.62 USD
+1.78 (+3.03%)
60.62 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ESNT. ESNT was compared to 98 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. With these ratings, ESNT could be worth investigating further 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.
- ESNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ESNT's Return On Assets of 9.56% is amongst the best of the industry. ESNT outperforms 87.76% of its industry peers.
- ESNT has a Return On Equity of 12.25%. This is in the better half of the industry: ESNT outperforms 66.33% of its industry peers.
- The Return On Invested Capital of ESNT (10.25%) is better than 82.65% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- ESNT's Profit Margin of 55.63% is amongst the best of the industry. ESNT outperforms 94.90% of its industry peers.
- In the last couple of years the Profit Margin of ESNT has declined.
- ESNT has a better Operating Margin (68.46%) than 92.86% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESNT is creating some value.
- Compared to 1 year ago, ESNT has less shares outstanding
- Compared to 5 years ago, ESNT has more shares outstanding
- ESNT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.70 indicates that ESNT is not in any danger for bankruptcy at the moment.
- ESNT has a better Altman-Z score (3.70) than 84.69% 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 83.67% 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's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. ESNT outperforms 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.22
WACC8.41%
2.3 Liquidity
- A Current Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
- ESNT has a Current ratio of 2.63. This is amongst the best in the industry. ESNT outperforms 80.61% 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 better Quick ratio (2.63) than 82.65% 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%.
- 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 been growing slightly by 3.13% in the past year.
- 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)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
3.2 Future
- The Earnings Per Share is expected to grow by 5.31% on average over the next years.
- 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 2Y4.56%
EPS Next 3Y5.31%
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.
- 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
- The Price/Earnings ratio is 8.82, which indicates a very decent valuation of ESNT.
- 69.39% of the companies in the same industry are more expensive than ESNT, based on the Price/Earnings ratio.
- ESNT is valuated cheaply when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.11, the valuation of ESNT can be described as very reasonable.
- ESNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 69.39% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
- ESNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ESNT is cheaper than 83.67% of the companies in the same industry.
- 88.78% of the companies in the same industry are more expensive than ESNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESNT does not grow enough to justify the current Price/Earnings ratio.
- ESNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)2.26
EPS Next 2Y4.56%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
- ESNT has a Yearly Dividend Yield of 1.92%.
- ESNT's Dividend Yield is a higher than the industry average which is at 2.49.
- ESNT's Dividend Yield is comparable with the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
- ESNT pays out 17.35% 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.
DP17.35%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
60.62
+1.78 (+3.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-11 2026-02-11/bmo
Inst Owners98.17%
Inst Owner Change0.11%
Ins Owners3.55%
Ins Owner Change-1.45%
Market Cap5.86B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts75.38
Price Target68.85 (13.58%)
Short Float %1.98%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP17.35%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 8.11 | ||
| P/S | 4.64 | ||
| P/FCF | 7 | ||
| P/OCF | 6.86 | ||
| P/B | 1.02 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 7 |
EPS(TTM)6.87
EY11.33%
EPS(NY)7.48
Fwd EY12.34%
FCF(TTM)8.66
FCFY14.28%
OCF(TTM)8.83
OCFY14.57%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)1.98
PEG (5Y)2.26
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 | 3.7 |
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 2Y4.56%
EPS Next 3Y5.31%
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.
Can you provide the valuation status for ESSENT GROUP LTD?
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.
What are the PE and PB ratios of ESSENT GROUP LTD (ESNT) stock?
The Price/Earnings (PE) ratio for ESSENT GROUP LTD (ESNT) is 8.82 and the Price/Book (PB) ratio is 1.02.
Is the dividend of ESSENT GROUP LTD sustainable?
The dividend rating of ESSENT GROUP LTD (ESNT) is 5 / 10 and the dividend payout ratio is 17.35%.