ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - NYSE:ESNT - BMG3198U1027 - Common Stock
60.57 USD
-0.11 (-0.18%)
60.57 USD
0 (0%)
Taking everything into account, ESNT scores 7 out of 10 in our fundamental rating. ESNT was compared to 99 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making ESNT a very profitable company, without any liquidiy or solvency issues. ESNT is valued quite cheap, but it does not seem to be growing. This makes ESNT very considerable 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.
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
ESNT has a Return On Assets of 9.90%. This is amongst the best in the industry. ESNT outperforms 87.88% of its industry peers.
ESNT has a Return On Equity of 12.60%. This is in the better half of the industry: ESNT outperforms 64.65% of its industry peers.
The Return On Invested Capital of ESNT (10.54%) is better than 85.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESNT is above the industry average of 7.80%.
| 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
ESNT has a Profit Margin of 56.36%. This is amongst the best in the industry. ESNT outperforms 96.97% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
The Operating Margin of ESNT (69.12%) is better than 92.93% of its industry peers.
ESNT's Operating Margin has been stable in the last couple of years.
| 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
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.
ESNT has more shares outstanding than it did 5 years ago.
ESNT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.92 indicates that ESNT is not in any danger for bankruptcy at the moment.
ESNT has a Altman-Z score of 3.92. This is amongst the best in the industry. ESNT outperforms 85.86% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.58, ESNT belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
ESNT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.92 |
ROIC/WACC1.27
WACC8.33%
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 81.82% 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.
ESNT has a better Quick ratio (3.13) than 82.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The earnings per share for ESNT have decreased by -0.87% 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.
The Revenue has been growing slightly by 5.28% in the past year.
ESNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.45% yearly.
EPS 1Y (TTM)-0.87%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.05%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%1.98%
3.2 Future
ESNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.28% yearly.
The Revenue is expected to grow by 2.89% on average over the next years.
EPS Next Y6.57%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
EPS Next 5YN/A
Revenue Next Year2.21%
Revenue Next 2Y1.88%
Revenue Next 3Y2.89%
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
Based on the Price/Earnings ratio of 8.84, the valuation of ESNT can be described as reasonable.
71.72% of the companies in the same industry are more expensive than ESNT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.19, ESNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.05, the valuation of ESNT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 64.65% of the companies listed in the same industry.
ESNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 82.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.98 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
ESNT's 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)1.35
PEG (5Y)2.27
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 5.08, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
16.98% 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.
DP16.98%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
60.57
-0.11 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.94%
Inst Owner Change-0.13%
Ins Owners3.52%
Ins Owner Change-0.5%
Market Cap5.97B
Revenue(TTM)1.27B
Net Income(TTM)714.85M
Analysts78.57
Price Target67.61 (11.62%)
Short Float %2.08%
Short Ratio3.09
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)0%
PT rev (3m)1.98%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.96%
EPS NY rev (1m)0%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 8.05 | ||
| P/S | 4.71 | ||
| P/FCF | 6.98 | ||
| P/OCF | 6.88 | ||
| P/B | 1.05 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)6.85
EY11.31%
EPS(NY)7.53
Fwd EY12.43%
FCF(TTM)8.68
FCFY14.32%
OCF(TTM)8.8
OCFY14.53%
SpS12.87
BVpS57.57
TBVpS56.77
PEG (NY)1.35
PEG (5Y)2.27
Graham Number94.2
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 | 3.92 |
F-Score4
WACC8.33%
ROIC/WACC1.27
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)-0.87%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.05%
EPS Next Y6.57%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
EPS Next 5YN/A
Revenue 1Y (TTM)5.28%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%1.98%
Revenue Next Year2.21%
Revenue Next 2Y1.88%
Revenue Next 3Y2.89%
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 8.84 and the Price/Book (PB) ratio is 1.05.
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%.