ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
NYSE:ESNT - New York Stock Exchange, Inc. - BMG3198U1027 - Common Stock - Currency: USD
Overall ESNT gets a fundamental rating of 6 out of 10. We evaluated ESNT against 101 industry peers in the Financial Services industry. ESNT has an excellent financial health rating, but there are some minor concerns on its profitability. ESNT may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ESNT could be worth investigating further for value investing!.
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.
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
Looking at the Return On Assets, with a value of 10.04%, ESNT belongs to the top of the industry, outperforming 88.12% of the companies in the same industry.
ESNT has a Return On Equity of 12.78%. This is in the better half of the industry: ESNT outperforms 67.33% of its industry peers.
The Return On Invested Capital of ESNT (10.68%) is better than 85.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESNT is in line with the industry average of 11.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 12.78% | ||
| ROIC | 10.68% |
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
With an excellent Profit Margin value of 57.29%, ESNT belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
In the last couple of years the Profit Margin of ESNT has declined.
ESNT has a better Operating Margin (70.07%) than 93.07% of its industry peers.
ESNT's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 70.07% | ||
| PM (TTM) | 57.29% | ||
| 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.
The debt/assets ratio for ESNT is higher compared to a year ago.
2.2 Solvency
ESNT has an Altman-Z score of 3.94. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT has a Altman-Z score of 3.94. This is amongst the best in the industry. ESNT outperforms 89.11% 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.
ESNT's Debt to FCF ratio of 0.58 is amongst the best of the industry. ESNT outperforms 87.13% of its industry peers.
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 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.94 |
ROIC/WACC1.23
WACC8.69%
2.3 Liquidity
A Current Ratio of 2.85 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a Current ratio of 2.85. This is amongst the best in the industry. ESNT outperforms 84.16% of its industry peers.
A Quick Ratio of 2.85 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a better Quick ratio (2.85) than 85.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past year.
ESNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
ESNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.57%.
The Revenue has been growing slightly by 7.45% on average over the past years.
EPS 1Y (TTM)3.33%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-0.59%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%6.44%
3.2 Future
The Earnings Per Share is expected to grow by 4.19% on average over the next years.
The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y1.89%
EPS Next 2Y4.06%
EPS Next 3Y4.19%
EPS Next 5YN/A
Revenue Next Year3.23%
Revenue Next 2Y3.37%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 8.66.
Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 74.26% of the companies listed in the same industry.
ESNT is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.98, which indicates a rather cheap valuation of ESNT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 67.33% of the companies listed in the same industry.
ESNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 86.14% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 86.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.16 | ||
| EV/EBITDA | 7.19 |
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)4.57
PEG (5Y)2.22
EPS Next 2Y4.06%
EPS Next 3Y4.19%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.87, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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.
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
16.61% 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.
DP16.61%
EPS Next 2Y4.06%
EPS Next 3Y4.19%
59.13
-0.33 (-0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.86%
Inst Owner Change1.4%
Ins Owners3.43%
Ins Owner Change0.56%
Market Cap6.11B
Analysts80
Price Target63.97 (8.19%)
Short Float %1.44%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend1.12
Dividend Growth(5Y)30.2%
DP16.61%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.8%
Min EPS beat(2)-5.88%
Max EPS beat(2)0.29%
EPS beat(4)2
Avg EPS beat(4)-0.12%
Min EPS beat(4)-6.37%
Max EPS beat(4)11.47%
EPS beat(8)6
Avg EPS beat(8)1.7%
EPS beat(12)9
Avg EPS beat(12)5.05%
EPS beat(16)13
Avg EPS beat(16)11.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)0.34%
Revenue beat(8)3
Avg Revenue beat(8)0.35%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)9
Avg Revenue beat(16)1.61%
PT rev (1m)-2.01%
PT rev (3m)-1.5%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-1.88%
EPS NY rev (1m)0.41%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 7.98 | ||
| P/S | 4.84 | ||
| P/FCF | 7.16 | ||
| P/OCF | 7.06 | ||
| P/B | 1.08 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)6.83
EY11.55%
EPS(NY)7.41
Fwd EY12.53%
FCF(TTM)8.26
FCFY13.97%
OCF(TTM)8.38
OCFY14.17%
SpS12.21
BVpS54.76
TBVpS53.99
PEG (NY)4.57
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 12.78% | ||
| ROCE | 12.57% | ||
| ROIC | 10.68% | ||
| ROICexc | 11.01% | ||
| ROICexgc | 11.34% | ||
| OM | 70.07% | ||
| PM (TTM) | 57.29% | ||
| GM | N/A | ||
| FCFM | 67.64% |
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%
ROICexcg growth 3Y-3.89%
ROICexcg 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 | 216.84% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 35.08 | ||
| Cash Conversion | 97.31% | ||
| Profit Quality | 118.05% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 3.94 |
F-Score4
WACC8.69%
ROIC/WACC1.23
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)3.33%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%-0.59%
EPS Next Y1.89%
EPS Next 2Y4.06%
EPS Next 3Y4.19%
EPS Next 5YN/A
Revenue 1Y (TTM)9.57%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%6.44%
Revenue Next Year3.23%
Revenue Next 2Y3.37%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y2.05%
EBIT growth 3Y2.36%
EBIT growth 5Y5.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y44.86%
FCF growth 3Y6.12%
FCF growth 5Y7.57%
OCF growth 1Y46.06%
OCF growth 3Y6.7%
OCF growth 5Y7.87%