ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
66.26 USD
-0.56 (-0.84%)
66.26 USD
0 (0%)
Overall ESNT gets a fundamental rating of 6 out of 10. We evaluated ESNT against 99 industry peers in the Financial Services industry. ESNT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ESNT has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years ESNT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ESNT (9.56%) is better than 87.88% of its industry peers.
With a decent Return On Equity value of 12.25%, ESNT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ESNT's Return On Invested Capital of 10.25% is amongst the best of the industry. ESNT outperforms 82.83% of its industry peers.
ESNT had an Average Return On Invested Capital over the past 3 years of 12.56%. This 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 has a better Profit Margin (55.63%) than 94.95% of its industry peers.
In the last couple of years the Profit Margin of ESNT has declined.
The Operating Margin of ESNT (68.46%) is better than 92.93% 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 | 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.
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.
Compared to 1 year ago, ESNT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.97 indicates that ESNT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.97, ESNT belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
The Debt to FCF ratio of ESNT is 0.59, which is an excellent value as it means it would take ESNT, only 0.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.59, ESNT belongs to the top of the industry, outperforming 83.84% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, ESNT is in the better half of the industry, outperforming 76.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.22
WACC8.43%
2.3 Liquidity
A Current Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
ESNT's Current ratio of 2.63 is fine compared to the rest of the industry. ESNT outperforms 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
The earnings per share for ESNT have decreased by -0.43% in the last year.
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.
ESNT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.13%.
ESNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.45% yearly.
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 5.19% on average over the next years.
The Revenue is expected to grow by 2.06% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 9.64, the valuation of ESNT can be described as reasonable.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than the industry average as 65.66% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.39, ESNT is valued rather cheaply.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of ESNT.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 62.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESNT to the average of the S&P500 Index (23.84), we can say ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
ESNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 76.77% of the companies 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 85.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.66 | ||
| EV/EBITDA | 7.82 |
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)2.17
PEG (5Y)2.48
EPS Next 2Y4.48%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 1.86%.
Compared to an average industry Dividend Yield of 2.43, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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 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 2Y4.48%
EPS Next 3Y5.19%
66.26
-0.56 (-0.84%)
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 Cap6.41B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price Target68.6 (3.53%)
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 | 9.64 | ||
| Fwd PE | 8.87 | ||
| P/S | 5.07 | ||
| P/FCF | 7.66 | ||
| P/OCF | 7.5 | ||
| P/B | 1.12 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)6.87
EY10.37%
EPS(NY)7.47
Fwd EY11.27%
FCF(TTM)8.66
FCFY13.06%
OCF(TTM)8.83
OCFY13.33%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)2.17
PEG (5Y)2.48
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 | 3.97 |
F-Score5
WACC8.43%
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 9.64 and the Price/Book (PB) ratio is 1.12.
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%.