ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESNT - BMG3198U1027 - Common Stock
65.75 USD
-0.11 (-0.17%)
65.75 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ESNT. ESNT was compared to 98 industry peers in the Financial Services industry. ESNT gets an excellent profitability rating and is at the same time showing great financial health properties. ESNT is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years ESNT has been profitable.
ESNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESNT has a better Return On Assets (9.56%) than 87.76% of its industry peers.
The Return On Equity of ESNT (12.25%) is better than 66.33% of its industry peers.
ESNT's Return On Invested Capital of 10.25% is amongst the best of the industry. ESNT outperforms 82.65% of its industry peers.
ESNT had an Average Return On Invested Capital over the past 3 years of 12.56%. This is above the industry average of 8.44%.
| 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
ESNT has a better Profit Margin (55.63%) than 94.90% 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
ESNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for ESNT is higher compared to a year ago.
2.2 Solvency
ESNT has an Altman-Z score of 3.96. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT has a better Altman-Z score (3.96) than 88.78% 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.
ESNT has a better Debt to FCF ratio (0.59) than 84.69% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.09, ESNT is doing good in the industry, outperforming 76.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 3.96 |
ROIC/WACC1.22
WACC8.4%
2.3 Liquidity
A Current Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
The Current ratio of ESNT (2.63) is better than 80.61% of its industry peers.
A Quick Ratio of 2.63 indicates that ESNT has no problem at all paying its short term obligations.
ESNT has a Quick ratio of 2.63. This is amongst the best in the industry. ESNT outperforms 82.65% 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%.
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 3.13% in the past 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)-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
Based on estimates for the next years, ESNT will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
Based on estimates for the next years, ESNT will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
EPS Next Y4.45%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.57 indicates a reasonable valuation of ESNT.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than 65.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESNT to the average of the S&P500 Index (26.84), we can say ESNT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.79 indicates a reasonable valuation of ESNT.
ESNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 62.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESNT to the average of the S&P500 Index (23.40), we can say ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
76.53% of the companies in the same industry are more expensive than ESNT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ESNT may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)2.46
EPS Next 2Y4.56%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.36, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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.
ESNT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.35%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
65.75
-0.11 (-0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change-3.71%
Ins Owners3.55%
Ins Owner Change-1.45%
Market Cap6.36B
Revenue(TTM)1.26B
Net Income(TTM)702.89M
Analysts77.14
Price Target68.85 (4.71%)
Short Float %2.27%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)0.37%
PT rev (3m)1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-2%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 8.79 | ||
| P/S | 5.03 | ||
| P/FCF | 7.6 | ||
| P/OCF | 7.45 | ||
| P/B | 1.11 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)6.87
EY10.45%
EPS(NY)7.48
Fwd EY11.37%
FCF(TTM)8.66
FCFY13.16%
OCF(TTM)8.83
OCFY13.43%
SpS13.07
BVpS59.37
TBVpS58.55
PEG (NY)2.15
PEG (5Y)2.46
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 | 3.96 |
F-Score5
WACC8.4%
ROIC/WACC1.22
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 Y4.45%
EPS Next 2Y4.56%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue 1Y (TTM)3.13%
Revenue growth 3Y6.52%
Revenue growth 5Y7.45%
Sales Q2Q%-1.5%
Revenue Next Year1.81%
Revenue Next 2Y1.68%
Revenue Next 3Y2.06%
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 6 / 10 to ESSENT GROUP LTD (ESNT). This can be considered as Fairly Valued.
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 9.57 and the Price/Book (PB) ratio is 1.11.
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%.