ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
64.37 USD
-0.11 (-0.17%)
64.37 USD
0 (0%)
ESNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 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 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.
Each year in the past 5 years ESNT had a positive operating cash flow.
1.2 Ratios
ESNT has a better Return On Assets (9.56%) than 87.63% of its industry peers.
ESNT has a Return On Equity of 12.25%. This is in the better half of the industry: ESNT outperforms 65.98% of its industry peers.
ESNT has a better Return On Invested Capital (10.25%) than 82.47% of its industry peers.
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 94.85% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
ESNT's Operating Margin of 68.46% is amongst the best of the industry. ESNT outperforms 92.78% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ESNT is still 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 3.91 indicates that ESNT is not in any danger for bankruptcy at the moment.
The Altman-Z score of ESNT (3.91) is better than 85.57% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.59, ESNT belongs to the best of the industry, outperforming 83.51% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.09, ESNT is doing good in the industry, outperforming 76.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.21
WACC8.44%
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 79.38% of its industry peers.
ESNT has a Quick Ratio of 2.63. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ESNT (2.63) is better than 81.44% 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%.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
ESNT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.13%.
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
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
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
With a Price/Earnings ratio of 9.37, the valuation of ESNT can be described as very reasonable.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than 64.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESNT to the average of the S&P500 Index (26.54), we can say ESNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.62, the valuation of ESNT can be described as reasonable.
62.89% of the companies in the same industry are more expensive than ESNT, based on the Price/Forward Earnings ratio.
ESNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued a bit cheaper than the industry average as 79.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaper than 86.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 7.63 |
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.
The decent profitability rating of ESNT may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)2.4
EPS Next 2Y4.48%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.88, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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.
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
17.35% of the earnings are spent on dividend by ESNT. This is a low number and 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%
64.37
-0.11 (-0.17%)
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-1.59%
Market Cap6.22B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price Target68.6 (6.57%)
Short Float %2.13%
Short Ratio3.13
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-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)-2.32%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-2%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.62 | ||
| P/S | 4.92 | ||
| P/FCF | 7.44 | ||
| P/OCF | 7.29 | ||
| P/B | 1.08 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.63 |
EPS(TTM)6.87
EY10.67%
EPS(NY)7.47
Fwd EY11.6%
FCF(TTM)8.66
FCFY13.45%
OCF(TTM)8.83
OCFY13.72%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)2.11
PEG (5Y)2.4
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 | 3.91 |
F-Score5
WACC8.44%
ROIC/WACC1.21
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 9.37 and the Price/Book (PB) ratio is 1.08.
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%.