ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
62.76 USD
-0.23 (-0.37%)
62.76 USD
0 (0%)
Overall ESNT gets a fundamental rating of 6 out of 10. We evaluated ESNT against 98 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 is valued quite cheap, but it does not seem to be growing. These ratings could make ESNT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ESNT had positive earnings in the past year.
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
The Return On Assets of ESNT (9.56%) is better than 88.78% of its industry peers.
ESNT's Return On Equity of 12.25% is fine compared to the rest of the industry. ESNT outperforms 66.33% of its industry peers.
ESNT has a Return On Invested Capital of 10.25%. This is amongst the best in the industry. ESNT outperforms 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 8.20%.
| 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 95.92% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 68.46%, ESNT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESNT is creating some value.
ESNT has less shares outstanding than it did 1 year ago.
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
ESNT has an Altman-Z score of 3.84. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT has a better Altman-Z score (3.84) 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.
The Debt to FCF ratio of ESNT (0.59) is better than 84.69% of its industry peers.
ESNT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ESNT (0.09) is better than 76.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.84 |
ROIC/WACC1.24
WACC8.28%
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 better Current ratio (2.63) than 79.59% of its industry peers.
A Quick Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
The Quick ratio of ESNT (2.63) is better than 81.63% 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.
The Revenue has been growing slightly by 3.13% 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)-0.43%
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 5.28% on average over the next years.
Based on estimates for the next years, ESNT will show a small growth in Revenue. The Revenue will grow by 2.81% on average per year.
EPS Next Y6.57%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y1.84%
Revenue Next 3Y2.81%
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.
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
A Price/Earnings ratio of 9.14 indicates a reasonable valuation of ESNT.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than 68.37% of the companies in the same industry.
ESNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
ESNT is valuated reasonably with a Price/Forward Earnings ratio of 8.34.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
ESNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
ESNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ESNT is cheaper than 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.25 | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
The 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)1.39
PEG (5Y)2.34
EPS Next 2Y4.89%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, ESNT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.04, ESNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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.
The dividend of ESNT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.35%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
62.76
-0.23 (-0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.94%
Inst Owner Change-3.71%
Ins Owners3.52%
Ins Owner Change-1.59%
Market Cap6.07B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price Target68.6 (9.31%)
Short Float %1.95%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)1.45%
PT rev (3m)1.45%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 8.34 | ||
| P/S | 4.8 | ||
| P/FCF | 7.25 | ||
| P/OCF | 7.11 | ||
| P/B | 1.06 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)6.87
EY10.95%
EPS(NY)7.53
Fwd EY11.99%
FCF(TTM)8.66
FCFY13.79%
OCF(TTM)8.83
OCFY14.07%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)1.39
PEG (5Y)2.34
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 | 3.84 |
F-Score5
WACC8.28%
ROIC/WACC1.24
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 Y6.57%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
EPS Next 5YN/A
Revenue 1Y (TTM)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
Revenue Next Year2.13%
Revenue Next 2Y1.84%
Revenue Next 3Y2.81%
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 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 9.14 and the Price/Book (PB) ratio is 1.06.
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%.