ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - NYSE:ESNT - BMG3198U1027 - Common Stock
59.93 USD
-0.47 (-0.78%)
Overall ESNT gets a fundamental rating of 7 out of 10. We evaluated ESNT against 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 cheap, but on the other hand it scores bad on growth. 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.
ESNT had a positive operating cash flow in the past year.
In the past 5 years ESNT has always been profitable.
ESNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.90%, ESNT belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
The Return On Equity of ESNT (12.60%) is better than 64.65% of its industry peers.
With an excellent Return On Invested Capital value of 10.54%, ESNT belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ESNT is above the industry average of 7.79%.
| 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
With an excellent Profit Margin value of 56.36%, ESNT belongs to the best of the industry, outperforming 96.97% 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 (69.12%) than 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESNT is creating some value.
The number of shares outstanding for ESNT has been reduced compared to 1 year ago.
Compared to 5 years ago, ESNT has more shares outstanding
ESNT has a worse debt/assets ratio than last year.
2.2 Solvency
ESNT has an Altman-Z score of 3.91. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT has a Altman-Z score of 3.91. This is amongst the best in the industry. ESNT outperforms 85.86% of its industry peers.
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.
ESNT has a better Debt to FCF ratio (0.58) than 85.86% 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 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.27
WACC8.27%
2.3 Liquidity
A Current Ratio of 3.13 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a Current ratio of 3.13. This is amongst the best in the industry. ESNT outperforms 81.82% of its industry peers.
A Quick Ratio of 3.13 indicates that ESNT has no problem at all paying its short term obligations.
The Quick ratio of ESNT (3.13) is better than 82.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
ESNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.87%.
ESNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
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
Based on estimates for the next years, ESNT will show a small growth in Earnings Per Share. The EPS will grow by 5.28% on average per year.
Based on estimates for the next years, ESNT will show a small growth in Revenue. The Revenue will grow by 2.89% on average per year.
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
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
The Price/Earnings ratio is 8.75, which indicates a very decent valuation of ESNT.
76.77% of the companies in the same industry are more expensive than ESNT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ESNT to the average of the S&P500 Index (27.08), we can say ESNT is valued rather cheaply.
ESNT is valuated cheaply with a Price/Forward Earnings ratio of 7.96.
68.69% 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 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
ESNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ESNT is cheaper than 83.84% of the companies in the same industry.
83.84% of the companies in the same industry are more expensive than ESNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 7.2 |
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)1.33
PEG (5Y)2.25
EPS Next 2Y4.89%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, ESNT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.60, ESNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, ESNT has a dividend comparable with the average S&P500 company.
| 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
ESNT pays out 16.98% 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.
DP16.98%
EPS Next 2Y4.89%
EPS Next 3Y5.28%
NYSE:ESNT (10/28/2025, 9:41:45 AM)
59.93
-0.47 (-0.78%)
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 Cap5.90B
Revenue(TTM)1.27B
Net Income(TTM)714.85M
Analysts78.57
Price Target67.61 (12.81%)
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 | 8.75 | ||
| Fwd PE | 7.96 | ||
| P/S | 4.66 | ||
| P/FCF | 6.91 | ||
| P/OCF | 6.81 | ||
| P/B | 1.04 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)6.85
EY11.43%
EPS(NY)7.53
Fwd EY12.56%
FCF(TTM)8.68
FCFY14.48%
OCF(TTM)8.8
OCFY14.68%
SpS12.87
BVpS57.57
TBVpS56.77
PEG (NY)1.33
PEG (5Y)2.25
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 | 3.91 |
F-Score4
WACC8.27%
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 8.75 and the Price/Book (PB) ratio is 1.04.
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%.