ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
NYSE:ESNT - BMG3198U1027 - Common Stock
63.9 USD
+1.83 (+2.95%)
63.9 USD
0 (0%)
Overall ESNT gets a fundamental rating of 6 out of 10. We evaluated ESNT against 100 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 valued quite cheap, but it does not seem to be growing. These ratings would make ESNT suitable 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 88.00% of the companies in the same industry.
ESNT has a Return On Equity of 12.60%. This is in the better half of the industry: ESNT outperforms 65.00% of its industry peers.
With an excellent Return On Invested Capital value of 10.54%, ESNT belongs to the best of the industry, outperforming 86.00% 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 7.81%.
| 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
The Profit Margin of ESNT (56.36%) is better than 97.00% 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 69.12%, ESNT belongs to the top of the industry, outperforming 93.00% 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 | 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
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
The number of shares outstanding for ESNT has been increased compared to 5 years ago.
ESNT has a worse debt/assets ratio than last year.
2.2 Solvency
ESNT has an Altman-Z score of 4.04. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT has a Altman-Z score of 4.04. This is amongst the best in the industry. ESNT outperforms 87.00% of its industry peers.
ESNT has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
ESNT has a better Debt to FCF ratio (0.58) than 88.00% 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.
ESNT has a Debt to Equity ratio of 0.09. This is in the better half of the industry: ESNT outperforms 79.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.24
WACC8.51%
2.3 Liquidity
A Current Ratio of 3.13 indicates that ESNT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.13, ESNT belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
ESNT has a Quick Ratio of 3.13. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.13, ESNT belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The earnings per share for ESNT have decreased by -0.87% in the last year.
ESNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
Looking at the last year, ESNT shows a small growth in Revenue. The Revenue has grown by 5.28% 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)-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
The Earnings Per Share is expected to grow by 5.12% 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 Y6.56%
EPS Next 2Y4.99%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year2.21%
Revenue Next 2Y1.84%
Revenue Next 3Y2.81%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.33, the valuation of ESNT can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 75.00% of the companies listed in the same industry.
ESNT is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
ESNT is valuated reasonably with a Price/Forward Earnings ratio of 8.48.
ESNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESNT is cheaper than 69.00% of the companies in the same industry.
ESNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued cheaply inside the industry as 83.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.37 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
ESNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ESNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)2.39
EPS Next 2Y4.99%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.00%.
Compared to an average industry Dividend Yield of 4.27, ESNT pays a bit more dividend than its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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 16.98% 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.
DP16.98%
EPS Next 2Y4.99%
EPS Next 3Y5.12%
63.9
+1.83 (+2.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change-0.91%
Ins Owners3.43%
Ins Owner Change-2.95%
Market Cap6.30B
Analysts77.33
Price Target67.61 (5.81%)
Short Float %1.75%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)1.98%
PT rev (3m)5.69%
EPS NQ rev (1m)2.83%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)3.77%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)-2.32%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.48 | ||
| P/S | 4.96 | ||
| P/FCF | 7.37 | ||
| P/OCF | 7.26 | ||
| P/B | 1.11 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)6.85
EY10.72%
EPS(NY)7.54
Fwd EY11.8%
FCF(TTM)8.68
FCFY13.58%
OCF(TTM)8.8
OCFY13.77%
SpS12.87
BVpS57.57
TBVpS56.77
PEG (NY)1.42
PEG (5Y)2.39
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%
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 | 216.16% | ||
| 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 | 4.04 |
F-Score4
WACC8.51%
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)-0.87%
EPS 3Y3.83%
EPS 5Y3.9%
EPS Q2Q%1.05%
EPS Next Y6.56%
EPS Next 2Y4.99%
EPS Next 3Y5.12%
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 2Y1.84%
Revenue Next 3Y2.81%
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%