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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$44.20|
|52 Week High||US$34.60|
|52 Week Low||US$54.22|
|1 Month Change||-5.54%|
|3 Month Change||-4.41%|
|1 Year Change||24.61%|
|3 Year Change||2.72%|
|5 Year Change||62.50%|
|Change since IPO||96.18%|
Recent News & Updates
Essent Group: Don't Be Fooled By The Market
ESNT's record in excess capital, which reached $1.28 billion, is to be redeployed in the core business and reward shareholders through share buybacks of $250 million through 2022 and dividends. The company's book keeps improving with curing default rates down to 2.96%, almost half since pandemic's peak. Concerns over a housing market crash are valid, but the $10 billion homeowner assistance fund (HAF), the undersupplied market by 5.5 million housing units, and the favorable Millennials market prevail. Alignment of shareholders' interests with senior management via growth targets for book value and total shareholder return over a 3-year period is a key ingredient for the company's long-term success. My initial fair value estimate of $47 to $58 remains intact, and ESNT constitutes a great fit for an investment portfolio with at least a 3-year time horizon.
Essent Group (NYSE:ESNT) Will Pay A Larger Dividend Than Last Year At US$0.18
The board of Essent Group Ltd. ( NYSE:ESNT ) has announced that it will be increasing its dividend on the 10th of...
|ESNT||US Mortgage||US Market|
Return vs Industry: ESNT exceeded the US Mortgage industry which returned 16.8% over the past year.
Return vs Market: ESNT underperformed the US Market which returned 31.5% over the past year.
Stable Share Price: ESNT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ESNT's weekly volatility (3%) has been stable over the past year.
About the Company
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
|ESNT fundamental statistics|
Is ESNT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ESNT income statement (TTM)|
|Cost of Revenue||US$202.32m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||4.85|
|Net Profit Margin||55.56%|
How did ESNT perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Is Essent Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ESNT ($44.2) is trading below our estimate of fair value ($119.59)
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 (9.1x) compared to the US Mortgage industry average (11.8x).
PE vs Market: ESNT is good value based on its PE Ratio (9.1x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: ESNT is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: ESNT is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1x).
How is Essent Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESNT's forecast earnings growth (8.6% per year) is above the savings rate (2%).
Earnings vs Market: ESNT's earnings (8.6% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: ESNT's earnings are forecast to grow, but not significantly.
Revenue vs Market: ESNT's revenue (4.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: ESNT's revenue (4.9% 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%).
How has Essent Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ESNT has high quality earnings.
Growing Profit Margin: ESNT's current net profit margins (55.6%) are higher than last year (49.6%).
Past Earnings Growth Analysis
Earnings Trend: ESNT's earnings have grown by 15.3% per year over the past 5 years.
Accelerating Growth: ESNT's earnings growth over the past year (19.1%) exceeds its 5-year average (15.3% per year).
Earnings vs Industry: ESNT earnings growth over the past year (19.1%) underperformed the Mortgage industry 36.9%.
Return on Equity
High ROE: ESNT's Return on Equity (13.3%) is considered low.
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
Financial Institutions Analysis
Asset Level: ESNT's Assets to Equity ratio (1.4x) 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.
What is Essent Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ESNT's dividend (1.63%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: ESNT's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (3.67%).
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 (13.4%), 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 (12.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Casale (56 yo)
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 ($USD6.78M) is about average for companies of similar size in the US market ($USD6.52M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: ESNT's management team is seasoned and experienced (12.7 years average tenure).
Experienced Board: ESNT's board of directors are considered experienced (8.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ESNT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Essent Group Ltd.'s employee growth, exchange listings and data sources
- Name: Essent Group Ltd.
- Ticker: ESNT
- Exchange: NYSE
- Founded: 2008
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$4.945b
- Shares outstanding: 111.87m
- Website: https://www.essentgroup.com
Number of Employees
- Essent Group Ltd.
- Clarendon House
- 2 Church Street
- HM 11
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/22 22:41|
|End of Day Share Price||2021/09/22 00:00|
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.