Loading...

Essent Group

NYSE:ESNT
Snowflake Description

Undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ESNT
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The last earnings update was 51 days ago. More info.


Add to Portfolio Compare Print
ESNT Share Price and Events
7 Day Returns
-8.4%
NYSE:ESNT
-1.3%
US Mortgage
1.4%
US Market
1 Year Returns
26.8%
NYSE:ESNT
-0.7%
US Mortgage
4.9%
US Market
ESNT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Essent Group (ESNT) -8.4% -4.9% 3.5% 26.8% 111.4% 123.1%
US Mortgage -1.3% -0.7% 2.5% -0.7% 40.3% 34.7%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • ESNT outperformed the Mortgage industry which returned -0.7% over the past year.
  • ESNT outperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
ESNT
Industry
5yr Volatility vs Market

ESNT Value

 Is Essent Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Essent Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Essent Group.

NYSE:ESNT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= $33.88 * 18.5%
$6.28
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. $33.88
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ESNT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.893 (1 + (1- 21%) (5.3%))
0.953
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.953 * 5.96%)
8.41%

Discounted Cash Flow Calculation for NYSE:ESNT using Excess Returns Model Model

The calculations below outline how an intrinsic value for Essent Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:ESNT Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (18.5% – 8.41%) * $33.88)
$3.43
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.43 / (8.41% - 2.73%)
$60.32
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $33.88 + $60.32
$94.2
NYSE:ESNT Discount to Share Price
Calculation Result
Value per share (USD) From above. $94.20
Current discount Discount to share price of $45.41
= -1 x ($45.41 - $94.20) / $94.20
51.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Essent Group is available for.
Intrinsic value
>50%
Share price is $45.41 vs Future cash flow value of $94.2
Current Discount Checks
For Essent Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Essent Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Essent Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Essent Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Essent Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ESNT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.97
NYSE:ESNT Share Price ** NYSE (2019-06-25) in USD $45.41
United States of America Mortgage Industry PE Ratio Median Figure of 130 Publicly-Listed Mortgage Companies 13.96x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Essent Group.

NYSE:ESNT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ESNT Share Price ÷ EPS (both in USD)

= 45.41 ÷ 4.97

9.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essent Group is good value based on earnings compared to the US Mortgage industry average.
  • Essent Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Essent Group's expected growth come at a high price?
Raw Data
NYSE:ESNT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
10.9%per year
United States of America Mortgage Industry PEG Ratio Median Figure of 50 Publicly-Listed Mortgage Companies 1.33x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:ESNT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.15x ÷ 10.9%

0.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essent Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Essent Group's assets?
Raw Data
NYSE:ESNT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $25.70
NYSE:ESNT Share Price * NYSE (2019-06-25) in USD $45.41
United States of America Mortgage Industry PB Ratio Median Figure of 145 Publicly-Listed Mortgage Companies 1.11x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NYSE:ESNT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ESNT Share Price ÷ Book Value per Share (both in USD)

= 45.41 ÷ 25.70

1.77x

* Primary Listing of Essent Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essent Group is overvalued based on assets compared to the US Mortgage industry average.
X
Value checks
We assess Essent Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Essent Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ESNT Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Essent Group expected to grow at an attractive rate?
  • Essent Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Essent Group's earnings growth is positive but not above the United States of America market average.
  • Essent Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ESNT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ESNT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 10.9%
NYSE:ESNT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 11.6%
United States of America Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United States of America Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ESNT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ESNT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,049 658 2
2020-12-31 939 575 7
2019-12-31 840 522 7
NYSE:ESNT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 752 542 484
2018-12-31 719 625 467
2018-09-30 687 603 501
2018-06-30 653 567 464
2018-03-31 616 513 424
2017-12-31 577 369 380
2017-09-30 542 327 280
2017-06-30 513 296 261
2017-03-31 483 284 241
2016-12-31 458 275 223
2016-09-30 429 265 204
2016-06-30 400 257 186

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Essent Group's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • Essent Group's revenue is expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ESNT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Essent Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ESNT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 6.51 6.97 6.21 3.00
2020-12-31 5.85 6.20 5.70 10.00
2019-12-31 5.32 5.44 5.20 10.00
NYSE:ESNT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.97
2018-12-31 4.80
2018-09-30 5.16
2018-06-30 4.81
2018-03-31 4.47
2017-12-31 4.07
2017-09-30 3.04
2017-06-30 2.86
2017-03-31 2.65
2016-12-31 2.45
2016-09-30 2.25
2016-06-30 2.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Essent Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Essent Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Essent Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ESNT Past Performance

  How has Essent Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Essent Group's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Essent Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Essent Group's 1-year earnings growth is less than its 5-year average (14.1% vs 42.4%)
  • Essent Group's earnings growth has not exceeded the US Mortgage industry average in the past year (14.1% vs 39%).
Earnings and Revenue History
Essent Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Essent Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ESNT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 752.42 484.01 89.87
2018-12-31 719.35 467.36 90.08
2018-09-30 687.34 501.47 89.40
2018-06-30 652.54 463.86 90.98
2018-03-31 616.38 424.22 91.35
2017-12-31 576.51 379.75 90.96
2017-09-30 541.77 279.80 91.33
2017-06-30 512.83 261.11 89.17
2017-03-31 483.38 241.25 86.92
2016-12-31 458.26 222.61 84.04
2016-09-30 429.36 204.40 80.51
2016-06-30 399.84 185.51 77.27
2016-03-31 375.75 170.44 74.35
2015-12-31 353.29 157.33 72.23
2015-09-30 328.56 141.72 69.87
2015-06-30 301.44 125.97 68.44
2015-03-31 271.66 108.33 66.80
2014-12-31 239.47 88.50 64.29
2014-09-30 209.08 25.94 62.93
2014-06-30 180.91 16.49 58.49
2014-03-31 156.19 20.51 53.11
2013-12-31 131.40 12.71 46.97
2013-09-30 107.46 47.44 39.67
2013-06-30 84.54 29.76 36.29
2013-03-31 63.36 -0.08 33.49
2012-12-31 48.72 -13.54 31.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Essent Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Essent Group used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.
  • Essent Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Essent Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Essent Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ESNT Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Essent Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Essent Group Company Filings, last reported 2 months ago.

NYSE:ESNT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,527.80 223.81 251.31
2018-12-31 2,365.72 223.66 219.35
2018-09-30 2,215.14 223.49 221.71
2018-06-30 2,103.57 223.34 351.68
2018-03-31 1,995.29 263.70 413.72
2017-12-31 1,940.44 248.59 356.22
2017-09-30 1,780.57 173.49 354.25
2017-06-30 1,497.90 173.19 158.65
2017-03-31 1,412.75 125.00 132.09
2016-12-31 1,343.77 100.00 159.88
2016-09-30 1,310.22 50.00 166.82
2016-06-30 1,248.61 0.00 145.41
2016-03-31 1,181.50 0.00 111.69
2015-12-31 1,119.24 0.00 110.60
2015-09-30 1,076.24 0.00 140.32
2015-06-30 1,027.77 0.00 120.96
2015-03-31 996.02 0.00 133.82
2014-12-31 955.74 0.00 235.10
2014-09-30 794.89 0.00 123.84
2014-06-30 767.96 0.00 187.35
2014-03-31 740.13 0.00 270.36
2013-12-31 722.14 0.00 491.73
2013-09-30 387.98 0.00 145.33
2013-06-30 371.23 0.00 131.26
2013-03-31 219.12 0.00 29.41
2012-12-31 219.12 0.00 29.41
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Unable to establish if Essent Group has an acceptable proportion of non-loan assets without balance sheet data.
  • Unable to establish if Essent Group's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.
  • Essent Group reports no customer deposits, loans are made up entirely of borrowed funds.
  • Essent Group's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if Essent Group has a sufficient allowance for bad loans without relevant financial data.
  • Unable to establish if Essent Group has an acceptable level of bad loans without bad loans data.
X
Financial health checks
We assess Essent Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Essent Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ESNT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Essent Group dividends. Estimated to be 0% next year.
If you bought $2,000 of Essent Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Essent Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Essent Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ESNT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 95 Stocks 3.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ESNT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Essent Group has not reported any payouts.
  • Unable to verify if Essent Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Essent Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Essent Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Essent Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Essent Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Essent Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Essent Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ESNT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Casale
COMPENSATION $6,702,015
AGE 53
TENURE AS CEO 11.4 years
CEO Bio

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 Essent Guaranty, Inc. Mr. Casale is the founder of Essent Group Ltd. and serves as its President. He has been Chief Executive Officer and Director at Essent Group Ltd. since 2008 and also has been its Chairman of the Board since 2013. He has more than 25 years of financial services management experience, with senior roles in the areas of mortgage banking, mortgage insurance, bond insurance and capital markets. Mr. Casale served as President of Radian Guaranty Inc. a subsidiary of Radian Group Inc. from March 2006 to November 1, 2007. Mr. Casale served as Executive Vice President of Mortgage Insurance since November 18, 2005 and Senior Vice President of Capital Markets at Radian Group Inc. from February 2004 to November 18, 2005. He joined Radian in May 2001 as Senior Vice President of Strategic Investments. He served as Vice President of Society Hill Capital Management from August 2000 to April 2001. He managed the research and investment in publicly traded debt and equity securities at Society Hill Capital Management. Mr. Casale served as Senior Vice President of Corporate Finance Services and in various other management positions with Advanta Corp. from February 1992 to May 2000. Mr. Casale has been a Director at Essent Guaranty, Inc. since 2008. He serves as Director of Essent US Holdings, Inc. Mr. Casale serves on the Board of Trustees of St. Joseph's University. Mr. Casale holds a BS in accounting from St. Joseph's University and an MBA in finance from New York University.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Essent Group management team in years:

10.4
Average Tenure
53
Average Age
  • The average tenure for the Essent Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mark Casale

TITLE
Chairman
COMPENSATION
$7M
AGE
53
TENURE
11.4 yrs

Larry McAlee

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
54
TENURE
10.4 yrs

Chris Curran

TITLE
Senior Vice President of Corporate Development
COMPENSATION
$2M

Vijay Bhasin

TITLE
Chief Risk Officer & Senior VP
COMPENSATION
$2M
AGE
53
TENURE
10.4 yrs

Jeff Cashmer

TITLE
Senior VP & Chief Business Officer
COMPENSATION
$2M
AGE
47

Bill Kaiser

TITLE
Senior VP & Chief Operations Officer

David Weinstock

TITLE
VP & Chief Accounting Officer
AGE
52
TENURE
10.4 yrs

David Weinstock

TITLE
Chief Accounting Officer & Vice President
AGE
53
TENURE
10.4 yrs

Theodore Gray

TITLE
Senior VP & Chief Information Officer

Mary Gibbons

TITLE
Chief Legal Officer
COMPENSATION
$2M
AGE
56
TENURE
11.4 yrs
Board of Directors Tenure

Average tenure and age of the Essent Group board of directors in years:

6.4
Average Tenure
54
Average Age
  • The tenure for the Essent Group board of directors is about average.
Board of Directors

Mark Casale

TITLE
Chairman
COMPENSATION
$7M
AGE
53
TENURE
6.4 yrs

William Spiegel

TITLE
Lead Director
COMPENSATION
$230K
AGE
56

Rob Glanville

TITLE
Director
COMPENSATION
$215K
AGE
52
TENURE
11.4 yrs

Roy Kasmar

TITLE
Director
COMPENSATION
$213K
AGE
62
TENURE
6.4 yrs

Doug Pauls

TITLE
Director
COMPENSATION
$220K
AGE
59
TENURE
5.5 yrs

Aditya Dutt

TITLE
Director
COMPENSATION
$210K
AGE
42
TENURE
9.4 yrs

Jane Chwick

TITLE
Director
COMPENSATION
$143K
AGE
55
TENURE
1.1 yrs

Angie Heise

TITLE
Director
COMPENSATION
$143K
AGE
43
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Dec 18 Buy Robert Glanville Individual 06. Dec 18 07. Dec 18 2,000 $36.48 $72,240
X
Management checks
We assess Essent Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Essent Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ESNT News

Simply Wall St News

Does Market Volatility Impact Essent Group Ltd.'s (NYSE:ESNT) Share Price?

(NYSE:ESNT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. … What this means for you: Beta only tells us that the Essent Group share price is sensitive to broader market movements.

Simply Wall St -

If You Like EPS Growth Then Check Out Essent Group (NYSE:ESNT) Before It's Too Late

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Essent Group (NYSE:ESNT). … Like a sturdy phalanx Essent Group insiders have stood united by refusing to sell shares over the last year. … So if you like the sound of Essent Group, you'll probably love this free list of growing companies that insiders are buying.

Simply Wall St -

Essent Group Ltd. (NYSE:ESNT): Poised For Long-Term Success?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … The latest earnings announcement Essent Group Ltd.

Simply Wall St -

What Do Analysts Think About Essent Group Ltd.'s (NYSE:ESNT) Future?

After Essent Group Ltd.'s (NYSE:ESNT) earnings announcement in December 2018,. … with earnings expected to grow by 9.6% in the upcoming year … the higher past 5-year average growth rate of 46%

Simply Wall St -

Did Business Growth Power Essent Group's (NYSE:ESNT) Share Price Gain of 134%?

(NYSE:ESNT) share price has flown 134% in the last three years. … During three years of share price growth, Essent Group achieved compound earnings per share growth of 40% per year. … The average annual share price increase of 33% is actually lower than the EPS growth.

Simply Wall St -

Our Take On Essent Group Ltd.'s (NYSE:ESNT) CEO Salary

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mark Casale's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$4.3b, and pays its CEO total annual compensation worth US$6.6m.

Simply Wall St -

Read This Before Selling Essent Group Ltd. (NYSE:ESNT) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Essent Group Ltd. … The Last 12 Months Of Insider Transactions At Essent Group. … Robert Glanville was the only individual insider to buy shares in the last twelve months

Simply Wall St -

Is Essent Group Ltd. (NYSE:ESNT) Potentially Undervalued?

As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, what if the stock is still a bargain … Today I will analyse the most recent data on Essent Group’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Do You Know What Essent Group Ltd.'s (NYSE:ESNT) P/E Ratio Means?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Essent Group Ltd.'s (NYSE:ESNT) P/E ratio and reflect on what it tells us about the company's share price. … Essent Group has a price to earnings ratio of 7.94, based on the last twelve months.

Simply Wall St -

Who Has Been Selling Essent Group Ltd (NYSE:ESNT) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Essent Group Ltd (NYSE:ESNT). … Essent Group Insider Transactions Over The Last Year. … Andrew Turnbull was the only individual insider to sell shares in the last twelve months

Simply Wall St -

ESNT Company Info

Description

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 information technology maintenance and development services; customer support-related services; and contract underwriting services. It serves the originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions, and other lenders. The company was founded in 2008 and is based in Hamilton, Bermuda.

Details
Name: Essent Group Ltd.
ESNT
Exchange: NYSE
Founded: 2008
$4,466,915,083
98,368,533
Website: http://www.essentgroup.com
Address: Essent Group Ltd.
Clarendon House,
2 Church Street,
Hamilton,
HM 11,
Bermuda
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ESNT Common Shares New York Stock Exchange US USD 01. Nov 2013
LSE 0U95 Common Shares London Stock Exchange GB USD 01. Nov 2013
Number of employees
Current staff
Staff numbers
377
Essent Group employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 00:57
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/03
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.