NYSE:ESNT

Stock Analysis Report

Executive Summary

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States.

Snowflake

Fundamentals

Good value with limited growth.


Similar Companies

Share Price & News

How has Essent Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESNT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

ESNT

0.03%

US Mortgage

0.7%

US Market


1 Year Return

33.5%

ESNT

18.0%

US Mortgage

12.9%

US Market

Return vs Industry: ESNT exceeded the US Mortgage industry which returned 18% over the past year.

Return vs Market: ESNT exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

ESNTIndustryMarket
7 Day0.1%0.03%0.7%
30 Day6.3%3.3%4.4%
90 Day11.9%9.4%7.0%
1 Year33.9%33.5%20.5%18.0%15.4%12.9%
3 Year87.8%87.2%34.8%25.3%49.1%39.5%
5 Year123.2%122.5%74.2%55.3%62.7%44.7%

Price Volatility Vs. Market

How volatile is Essent Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Essent Group undervalued compared to its fair value and its price relative to the market?

48.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESNT ($53.73) is trading below our estimate of fair value ($103.64)

Significantly Below Fair Value: ESNT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ESNT is good value based on its PE Ratio (9.8x) compared to the Mortgage industry average (14.4x).

PE vs Market: ESNT is good value based on its PE Ratio (9.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ESNT is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ESNT is overvalued based on its PB Ratio (1.9x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Essent Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESNT's forecast earnings growth (7.3% per year) is above the savings rate (2.7%).

Earnings vs Market: ESNT's earnings (7.3% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: ESNT's earnings are forecast to grow, but not significantly.

Revenue vs Market: ESNT's revenue (10.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ESNT's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESNT's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Essent Group performed over the past 5 years?

36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESNT has a high level of non-cash earnings.

Growing Profit Margin: ESNT's current net profit margins (64.6%) are lower than last year (73%).


Past Earnings Growth Analysis

Earnings Trend: ESNT's earnings have grown significantly by 36.1% per year over the past 5 years.

Accelerating Growth: ESNT's earnings growth over the past year (7.1%) is below its 5-year average (36.1% per year).

Earnings vs Industry: ESNT earnings growth over the past year (7.1%) underperformed the Mortgage industry 22.9%.


Return on Equity

High ROE: ESNT's Return on Equity (18.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Essent Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ESNT has a low level of unsold assets or inventory.

Debt Coverage by Assets: ESNT's debt is covered by short term assets (assets are 2.7x debt).


Financial Institutions Analysis

Asset Level: ESNT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ESNT has a sufficient allowance for bad loans.

Low Risk Liabilities: ESNT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ESNT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ESNT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ESNT has an appropriate level of bad loans.


Next Steps

Dividend

What is Essent Group's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Essent Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.6%industryaverage2.7%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: ESNT's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ESNT's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ESNT's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ESNT's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (2.7%), ESNT's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ESNT's dividends in 3 years are forecast to be thoroughly covered by earnings (11.9% payout ratio).


Next Steps

Management

What is the CEO of Essent Group's salary, the management and board of directors tenure and is there insider trading?

10.8yrs

Average management tenure


CEO

Mark Casale (54yo)

11.8yrs

Tenure

US$6,702,015

Compensation

Mr. Mark Anthony Casale has been the Chief Executive Officer of Essent US Holdings, Inc. since 2008 and serves as its President. Mr. Casale serves as Chairman, Chief Executive Officer and President at Esse ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD6.70M) is about average for companies of similar size in the US market ($USD6.73M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.8yrs

Average Tenure

54yo

Average Age

Experienced Management: ESNT's management team is seasoned and experienced (10.8 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ESNT's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$72,24011 Dec 18
Robert Glanville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$36.48

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Casale (54yo)

    Chairman

    • Tenure: 11.8yrs
    • Compensation: US$6.70m
  • Larry McAlee (55yo)

    Senior VP & CFO

    • Tenure: 10.8yrs
    • Compensation: US$1.69m
  • Chris Curran

    Senior Vice President of Corporate Development

    • Tenure: 0yrs
    • Compensation: US$1.73m
  • Bill Kaiser

    Senior VP & Chief Operations Officer

    • Tenure: 0yrs
  • Jeff Cashmer (48yo)

    Senior VP & Chief Business Officer

    • Tenure: 0yrs
    • Compensation: US$2.09m
  • Vijay Bhasin (54yo)

    Chief Risk Officer & Senior VP

    • Tenure: 10.8yrs
    • Compensation: US$2.08m
  • Joseph Hissong (55yo)

    Senior VP & President of Essent Reinsurance Ltd.

    • Tenure: 4.5yrs
    • Compensation: US$1.60m
  • Mary Gibbons (57yo)

    Chief Legal Officer

    • Tenure: 11.8yrs
    • Compensation: US$1.62m
  • David Weinstock (54yo)

    Chief Accounting Officer & Vice President

    • Tenure: 10.8yrs
  • Theodore Gray

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • William Spiegel (57yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$230.02k
  • Rob Glanville (53yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$215.02k
  • Roy Kasmar (63yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$212.52k
  • Doug Pauls (60yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$220.02k
  • Mark Casale (54yo)

    Chairman

    • Tenure: 11.8yrs
    • Compensation: US$6.70m
  • Angie Heise (44yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$143.35k
  • Aditya Dutt (43yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$210.02k
  • Jane Chwick (56yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$143.35k

Company Information

Essent Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Essent Group Ltd.
  • Ticker: ESNT
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$5.287b
  • Shares outstanding: 98.39m
  • Website: https://www.essentgroup.com

Number of Employees


Location

  • Essent Group Ltd.
  • Clarendon House
  • 2 Church Street
  • Hamilton
  • HM 11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESNTNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 2013
0U95LSE (London Stock Exchange)YesCommon SharesGBUSDNov 2013

Biography

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company also provides info ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:33
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.