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 99 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 This makes ESNT very considerable 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.
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's Return On Assets of 10.04% is amongst the best of the industry. ESNT outperforms 87.88% of its industry peers.
With a decent Return On Equity value of 12.78%, ESNT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ESNT has a Return On Invested Capital of 10.68%. This is amongst the best in the industry. ESNT outperforms 84.85% of its industry peers.
ESNT had an Average Return On Invested Capital over the past 3 years of 12.56%. This is in line with the industry average of 11.83%.
| 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
The Profit Margin of ESNT (57.29%) is better than 96.97% of its industry peers.
ESNT's Profit Margin has declined in the last couple of years.
ESNT's Operating Margin of 70.07% is amongst the best of the industry. ESNT outperforms 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESNT is creating some value.
Compared to 1 year ago, ESNT has less shares outstanding
ESNT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESNT has a worse debt to assets ratio.
2.2 Solvency
ESNT has an Altman-Z score of 3.85. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.85, ESNT belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
The Debt to FCF ratio of ESNT is 0.58, which is an excellent value as it means it would take ESNT, only 0.58 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.58, ESNT belongs to the best of the industry, outperforming 87.88% 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.
The Debt to Equity ratio of ESNT (0.09) is better than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.23
WACC8.7%
2.3 Liquidity
ESNT has a Current Ratio of 2.85. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
ESNT has a better Current ratio (2.85) than 82.83% of its industry peers.
A Quick Ratio of 2.85 indicates that ESNT has no problem at all paying its short term obligations.
The Quick ratio of ESNT (2.85) is better than 83.84% 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.
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.
Looking at the last year, ESNT shows a quite strong growth in Revenue. The Revenue has grown by 9.57% in the last year.
Measured over the past years, ESNT shows a small growth in Revenue. The Revenue has been growing by 7.45% on average per year.
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 Year3.31%
Revenue Next 2Y3.49%
Revenue Next 3Y3.89%
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 stable.
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 8.48 indicates a reasonable valuation of ESNT.
76.77% 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 26.59, ESNT is valued rather cheaply.
A Price/Forward Earnings ratio of 7.82 indicates a rather cheap valuation of ESNT.
Based on the Price/Forward Earnings ratio, ESNT is valued a bit cheaper than 65.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
83.84% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
ESNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ESNT is cheaper than 86.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ESNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.48
PEG (5Y)2.18
EPS Next 2Y4.06%
EPS Next 3Y4.19%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.17%.
Compared to an average industry Dividend Yield of 4.93, ESNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, ESNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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 16.61% 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.
DP16.61%
EPS Next 2Y4.06%
EPS Next 3Y4.19%
57.92
+0.4 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.86%
Inst Owner Change1.34%
Ins Owners3.43%
Ins Owner Change0.56%
Market Cap5.87B
Analysts81.33
Price Target66.01 (13.97%)
Short Float %1.7%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)3.19%
PT rev (3m)1.12%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0.41%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 7.82 | ||
| P/S | 4.65 | ||
| P/FCF | 6.88 | ||
| P/OCF | 6.78 | ||
| P/B | 1.04 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 6.92 |
EPS(TTM)6.83
EY11.79%
EPS(NY)7.41
Fwd EY12.79%
FCF(TTM)8.42
FCFY14.54%
OCF(TTM)8.54
OCFY14.75%
SpS12.45
BVpS55.81
TBVpS55.03
PEG (NY)4.48
PEG (5Y)2.18
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 | 3.85 |
F-Score4
WACC8.7%
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 Year3.31%
Revenue Next 2Y3.49%
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%