ESSENT GROUP LTD (ESNT)
BMG3198U1027 - Common Stock
Overall ESNT gets a fundamental rating of 7 out of 10. We evaluated ESNT against 102 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, while showing a decent growth score. This is a good combination! These ratings could make ESNT a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ESNT was profitable.
ESNT had a positive operating cash flow in the past year.
ESNT had positive earnings in each of the past 5 years.
ESNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESNT's Return On Assets of 10.84% is amongst the best of the industry. ESNT outperforms 93.14% of its industry peers.
ESNT's Return On Equity of 13.65% is fine compared to the rest of the industry. ESNT outperforms 63.73% of its industry peers.
The Return On Invested Capital of ESNT (11.45%) is better than 88.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESNT is significantly above the industry average of 7.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.84% | ||
| ROE | 13.65% | ||
| ROIC | 11.45% |
ROA(3y)12.43%
ROA(5y)11.91%
ROE(3y)16.12%
ROE(5y)15.54%
ROIC(3y)13.02%
ROIC(5y)12.42%
1.3 Margins
With an excellent Profit Margin value of 62.75%, ESNT belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
ESNT's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 76.89%, ESNT belongs to the top of the industry, outperforming 95.10% of the companies in the same industry.
ESNT's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.89% | ||
| PM (TTM) | 62.75% | ||
| GM | N/A |
OM growth 3Y13.93%
OM growth 5Y-0.03%
PM growth 3Y13.22%
PM growth 5Y-0.69%
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.
The number of shares outstanding for ESNT has been reduced compared to 1 year ago.
ESNT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESNT has an improved debt to assets ratio.
2.2 Solvency
ESNT has an Altman-Z score of 4.15. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ESNT (4.15) is better than 87.25% of its industry peers.
ESNT has a debt to FCF ratio of 0.56. This is a very positive value and a sign of high solvency as it would only need 0.56 years to pay back of all of its debts.
ESNT's Debt to FCF ratio of 0.56 is amongst the best of the industry. ESNT outperforms 86.27% of its industry peers.
ESNT has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
ESNT has a Debt to Equity ratio of 0.08. This is in the better half of the industry: ESNT outperforms 75.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.27
WACC9.03%
2.3 Liquidity
A Current Ratio of 3.38 indicates that ESNT has no problem at all paying its short term obligations.
The Current ratio of ESNT (3.38) is better than 89.22% of its industry peers.
A Quick Ratio of 3.38 indicates that ESNT has no problem at all paying its short term obligations.
ESNT's Quick ratio of 3.38 is amongst the best of the industry. ESNT outperforms 90.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
The earnings per share for ESNT have decreased strongly by -15.69% in the last year.
ESNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.08% yearly.
Looking at the last year, ESNT shows a quite strong growth in Revenue. The Revenue has grown by 10.88% in the last year.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.69%
EPS 3Y18.77%
EPS 5Y6.08%
EPS growth Q2Q19.71%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y5.13%
Revenue growth 5Y9.06%
Revenue growth Q2Q29.25%
3.2 Future
The Earnings Per Share is expected to grow by 5.51% on average over the next years.
The Revenue is expected to grow by 8.96% on average over the next years. This is quite good.
EPS Next Y3.77%
EPS Next 2Y5.19%
EPS Next 3Y5.51%
EPS Next 5YN/A
Revenue Next Year12.31%
Revenue Next 2Y9.58%
Revenue Next 3Y8.96%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.24, which indicates a very decent valuation of ESNT.
ESNT's Price/Earnings ratio is rather cheap when compared to the industry. ESNT is cheaper than 82.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESNT to the average of the S&P500 Index (24.55), we can say ESNT is valued rather cheaply.
ESNT is valuated cheaply with a Price/Forward Earnings ratio of 7.95.
Based on the Price/Forward Earnings ratio, ESNT is valued cheaper than 82.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESNT to the average of the S&P500 Index (20.92), we can say ESNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 7.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued cheaper than 83.33% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESNT indicates a rather cheap valuation: ESNT is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 7 |
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)2.19
PEG (5Y)1.36
EPS Next 2Y5.19%
EPS Next 3Y5.51%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.08%.
ESNT's Dividend Yield is a higher than the industry average which is at 3.60.
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 | 2.08% |
5.2 History
On average, the dividend of ESNT grows each year by 42.06%, 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 last 3 years.
Dividend Growth(5Y)42.06%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
15.25% of the earnings are spent on dividend by ESNT. This is a low number and sustainable payout ratio.
The dividend of ESNT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.25%
EPS Next 2Y5.19%
EPS Next 3Y5.51%
ESSENT GROUP LTD
NYSE:ESNT (5/1/2024, 7:04:00 PM)
After market: 53.59 0 (0%)53.59
+0.62 (+1.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 7.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.19
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.84% | ||
| ROE | 13.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 76.89% | ||
| PM (TTM) | 62.75% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.38 | ||
| Quick Ratio | 3.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-15.69%
EPS 3Y18.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.88%
Revenue growth 3Y5.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y