Essent Group
Market Cap
US$5.2b
Last Updated
2021/01/23 00:39 UTC
Data Sources
Company Financials +
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with moderate growth potential.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ESNT's weekly volatility has decreased from 13% to 6% over the past year.
Market Performance
7 Day Return
-4.8%
ESNT
0.4%
US Mortgage
2.3%
US Market
1 Year Return
-10.8%
ESNT
3.6%
US Mortgage
23.7%
US Market
Return vs Industry: ESNT underperformed the US Mortgage industry which returned 3.6% over the past year.
Return vs Market: ESNT underperformed the US Market which returned 23.7% over the past year.
Shareholder returns
| ESNT | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.8% | 0.4% | 2.3% |
| 30 Day | 3.7% | 0.5% | 4.7% |
| 90 Day | 5.2% | 10.8% | 14.5% |
| 1 Year | -9.3%-10.8% | 6.7%3.6% | 26.5%23.7% |
| 3 Year | -1.9%-4.1% | 20.1%10.5% | 45.0%35.4% |
| 5 Year | 160.7%154.9% | 84.5%58.4% | 126.2%100.9% |
Long-Term 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
1 month ago | Simply Wall St
Essent Group (NYSE:ESNT) Shareholders Have Enjoyed A 99% Share Price Gain1 month ago | Simply Wall St
Essent Group Ltd. (NYSE:ESNT) Passed Our Checks, And It's About To Pay A US$0.16 Dividend2 months ago | Simply Wall St
How Does Essent Group's (NYSE:ESNT) CEO Pay Compare With Company Performance?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 ($45.81) is trading below our estimate of fair value ($95.45)
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 (10.8x) compared to the US Mortgage industry average (13.2x).
PE vs Market: ESNT is good value based on its PE Ratio (10.8x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: ESNT is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: ESNT is overvalued based on its PB Ratio (1.4x) compared to the US Mortgage industry average (0.9x).
Next Steps
Future Growth
How is Essent Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
22.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESNT's forecast earnings growth (22.7% per year) is above the savings rate (2%).
Earnings vs Market: ESNT's earnings (22.7% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ESNT's revenue (10.5% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: ESNT's revenue (10.5% 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 (14.8%).
Next Steps
Past Performance
How has Essent Group performed over the past 5 years?
24.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ESNT has high quality earnings.
Growing Profit Margin: ESNT's current net profit margins (46.6%) are lower than last year (64.6%).
Past Earnings Growth Analysis
Earnings Trend: ESNT's earnings have grown significantly by 24.3% per year over the past 5 years.
Accelerating Growth: ESNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ESNT had negative earnings growth (-18.8%) over the past year, making it difficult to compare to the Mortgage industry average (2.7%).
Return on Equity
High ROE: ESNT's Return on Equity (11.6%) is considered low.
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
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.
Next Steps
Dividend
What is Essent Group current dividend yield, its reliability and sustainability?
1.40%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ESNT's dividend (1.4%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: ESNT's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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 (14.8%), 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% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.0yrs
Average management tenure
CEO
Mark Casale (55 yo)
13yrs
Tenure
US$8,056,425
Compensation
Mr. Mark Anthony Casale has been the Chief Executive Officer of Essent US Holdings, Inc. since 2008 and serves as its President. Mr. Casale serves as Chairman, Chief Executive Officer and President at Esse...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD8.06M) is about average for companies of similar size in the US market ($USD6.22M).
Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 13yrs | US$8.06m | 1.56% $ 80.5m | |
| Senior VP & CFO | 12yrs | US$1.71m | 0.15% $ 7.8m | |
| Senior Vice President of Corporate Development | no data | US$1.88m | 0.14% $ 7.2m | |
| Chief Risk Officer & Senior VP | 12yrs | US$2.13m | 0.15% $ 7.9m | |
| Senior VP & Chief Business Officer | no data | US$2.01m | 0.10% $ 5.3m | |
| Senior VP & Chief Operations Officer | no data | no data | no data | |
| Chief Accounting Officer & VP | 12yrs | no data | no data | |
| Senior VP & Chief Information Officer | no data | no data | no data | |
| Senior VP | 13yrs | US$1.62m | 0.18% $ 9.4m | |
| Senior Vice President | 5.67yrs | US$1.60m | 0.043% $ 2.2m | |
| Senior Vice President of Strategic Initiatives | no data | no data | no data | |
| Secretary | no data | no data | no data |
12.0yrs
Average Tenure
55yo
Average Age
Experienced Management: ESNT's management team is seasoned and experienced (12 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 13yrs | US$8.06m | 1.56% $ 80.5m | |
| Lead Independent Director | no data | US$270.74k | 0.025% $ 1.3m | |
| Independent Director | 13yrs | US$250.74k | 0.034% $ 1.8m | |
| Independent Director | 8yrs | US$255.74k | 0.022% $ 1.1m | |
| Independent Director | 7.08yrs | US$255.74k | 0.024% $ 1.2m | |
| Independent Director | 2.67yrs | US$230.74k | 0.0050% $ 260.1k | |
| Independent Director | 11yrs | US$230.74k | 0.025% $ 1.3m | |
| Director | 13yrs | US$67.08k | 0.022% $ 1.2m | |
| Independent Director | 2.67yrs | US$230.74k | 0.0050% $ 260.1k |
8.0yrs
Average Tenure
55yo
Average Age
Experienced Board: ESNT's board of directors are considered experienced (8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.3%.
Top Shareholders
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$5.150b
- Shares outstanding: 112.42m
- Website: https://www.essentgroup.com
Number of Employees
Location
- Essent Group Ltd.
- Clarendon House
- 2 Church Street
- Hamilton
- HM 11
- Bermuda
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ESNT | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Nov 2013 |
| 0U95 | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Nov 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. Its mortgage insurance product...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 00:39 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.