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ESNT

Essent GroupNYSE:ESNT Stock Report

Last Price

US$46.80

Market Cap

US$5.3b

7D

-5.4%

1Y

-3.2%

Updated

19 Jan, 2022

Data

Company Financials +
ESNT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health1/6
Dividends3/6

ESNT Stock Overview

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

Essent Group Competitors

MGIC Investment

NYSE:MTG

US$5.3b

Federal National Mortgage Association

OTCPK:FNMA

US$5.0b

Radian Group

NYSE:RDN

US$4.2b

Enact Holdings

NasdaqGS:ACT

US$3.5b

Price History & Performance

Summary of all time highs, changes and price drops for Essent Group
Historical stock prices
Current Share PriceUS$46.80
52 Week HighUS$54.22
52 Week LowUS$39.62
Beta1.34
1 Month Change11.62%
3 Month Change-5.55%
1 Year Change-3.23%
3 Year Change25.47%
5 Year Change37.04%
Change since IPO107.72%

Recent News & Updates

Dec 30
With EPS Growth And More, Essent Group (NYSE:ESNT) Is Interesting

With EPS Growth And More, Essent Group (NYSE:ESNT) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

ESNTUS MortgageUS Market
7D-5.4%-2.8%-3.5%
1Y-3.2%-9.9%10.2%

Return vs Industry: ESNT exceeded the US Mortgage industry which returned -7.9% over the past year.

Return vs Market: ESNT underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is ESNT's price volatile compared to industry and market?
ESNT volatility
ESNT Average Weekly Movement3.9%
Mortgage Industry Average Movement3.6%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: ESNT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ESNT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008343Mark Casalehttps://www.essentgroup.com

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services.

Essent Group Fundamentals Summary

How do Essent Group's earnings and revenue compare to its market cap?
ESNT fundamental statistics
Market CapUS$5.33b
Earnings (TTM)US$624.40m
Revenue (TTM)US$1.02b

8.3x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESNT income statement (TTM)
RevenueUS$1.02b
Cost of RevenueUS$141.02m
Gross ProfitUS$877.78m
ExpensesUS$253.38m
EarningsUS$624.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.65
Gross Margin86.16%
Net Profit Margin61.29%
Debt/Equity Ratio7.7%

How did ESNT perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

12%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESNT ($48.3) is trading below our estimate of fair value ($140.61)

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 (8.5x) compared to the US Mortgage industry average (12.9x).

PE vs Market: ESNT is good value based on its PE Ratio (8.5x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: ESNT is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ESNT is overvalued based on its PB Ratio (1.3x) compared to the US Mortgage industry average (1x).


Future Growth

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

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESNT's forecast earnings growth (3.8% per year) is above the savings rate (2%).

Earnings vs Market: ESNT's earnings (3.8% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: ESNT's revenue (4.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ESNT's revenue (4.5% 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 (15.3%).


Past Performance

How has Essent Group performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESNT has high quality earnings.

Growing Profit Margin: ESNT's current net profit margins (61.3%) are higher than last year (46.6%).


Past Earnings Growth Analysis

Earnings Trend: ESNT's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: ESNT's earnings growth over the past year (43.1%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: ESNT earnings growth over the past year (43.1%) exceeded the Mortgage industry 32%.


Return on Equity

High ROE: ESNT's Return on Equity (15%) is considered low.


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


Financial Institutions Analysis

Asset Level: ESNT's Assets to Equity ratio (1.3x) 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, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if ESNT has an appropriate level of Loans to Assets ratio.

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

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


Dividend

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

1.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESNT's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ESNT's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ESNT has been paying a dividend for less than 10 years.

Growing Dividend: ESNT's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12%), 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 (12.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.0yrs

Average management tenure


CEO

Mark Casale (55 yo)

14yrs

Tenure

US$6,778,301

Compensation

Mr. Mark Anthony Casale is the Founder, Chief Executive Officer and Chairman of the Board of Directors of Essent Group Ltd. He is Chairman and Chief Executive Officer at Essent Guaranty, Inc.and served as...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD6.78M) is about average for companies of similar size in the US market ($USD6.40M).

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


Leadership Team

Experienced Management: ESNT's management team is seasoned and experienced (13 years average tenure).


Board Members

Experienced Board: ESNT's board of directors are seasoned and experienced ( 13 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ESNT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Essent Group Ltd.'s 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
  • Implied Market Cap: US$5.334b
  • Shares outstanding: 110.43m
  • Website: https://www.essentgroup.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:09
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.