ESSENT GROUP LTD (ESNT) Stock Fundamental Analysis
USA - NYSE:ESNT - BMG3198U1027 - Common Stock
61.32 USD
-0.24 (-0.39%)
61.32 USD
0 (0%)
ESNT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. ESNT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ESNT is cheap, but on the other hand it scores bad on growth. This makes ESNT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ESNT was profitable.
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 (9.90%) than 88.00% of its industry peers.
ESNT has a better Return On Equity (12.60%) than 65.00% of its industry peers.
ESNT has a Return On Invested Capital of 10.54%. This is amongst the best in the industry. ESNT outperforms 86.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESNT is above the industry average of 7.66%.
| 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 96.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ESNT is still creating some value.
ESNT has less shares outstanding than it did 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 3.94. This indicates that ESNT is financially healthy and has little risk of bankruptcy at the moment.
ESNT has a Altman-Z score of 3.94. 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's Debt to FCF ratio of 0.58 is amongst the best of the industry. ESNT outperforms 87.00% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ESNT is not too dependend on debt financing.
The Debt to Equity ratio of ESNT (0.09) is better than 82.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.94 |
ROIC/WACC1.26
WACC8.38%
2.3 Liquidity
ESNT has a Current Ratio of 3.13. This indicates that ESNT is financially healthy and has no problem in meeting its short term obligations.
ESNT's Current ratio of 3.13 is amongst the best of the industry. ESNT outperforms 83.00% of its industry peers.
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.
The Quick ratio of ESNT (3.13) is better than 84.00% of its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 5.22% on average over the next years.
The Revenue is expected to grow by 2.81% on average over the next years.
EPS Next Y6.57%
EPS Next 2Y4.92%
EPS Next 3Y5.22%
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
Based on the Price/Earnings ratio of 8.95, the valuation of ESNT can be described as reasonable.
Based on the Price/Earnings ratio, ESNT is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.86. ESNT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.14, the valuation of ESNT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESNT indicates a somewhat cheap valuation: ESNT is cheaper than 69.00% of the companies listed in the same industry.
ESNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESNT is valued cheaper than 82.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ESNT is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.07 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
The 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)1.36
PEG (5Y)2.3
EPS Next 2Y4.92%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
ESNT has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.03, ESNT has a dividend in line with its industry peers.
ESNT's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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.
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 2Y4.92%
EPS Next 3Y5.22%
61.32
-0.24 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.94%
Inst Owner Change0%
Ins Owners3.52%
Ins Owner Change-0.5%
Market Cap6.04B
Analysts78.57
Price Target67.61 (10.26%)
Short Float %2.23%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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)2.43%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)0.01%
EPS NY rev (3m)3.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 8.14 | ||
| P/S | 4.76 | ||
| P/FCF | 7.07 | ||
| P/OCF | 6.97 | ||
| P/B | 1.07 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)6.85
EY11.17%
EPS(NY)7.53
Fwd EY12.28%
FCF(TTM)8.68
FCFY14.15%
OCF(TTM)8.8
OCFY14.35%
SpS12.87
BVpS57.57
TBVpS56.77
PEG (NY)1.36
PEG (5Y)2.3
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 | 3.94 |
F-Score4
WACC8.38%
ROIC/WACC1.26
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 2Y4.92%
EPS Next 3Y5.22%
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%