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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt No Debt
ESNT's Cash to Debt is ranked higher than
91% of the 1728 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.88 vs. ESNT: No Debt )
ESNT' s 10-Year Cash to Debt Range
Min: No Debt   Max: No Debt
Current: No Debt

Equity to Asset 0.81
ESNT's Equity to Asset is ranked higher than
99% of the 2245 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.09 vs. ESNT: 0.81 )
ESNT' s 10-Year Equity to Asset Range
Min: 0.77   Max: 0.85
Current: 0.81

0.77
0.85
Interest Coverage No Debt
ESNT's Interest Coverage is ranked higher than
97% of the 2154 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.25 vs. ESNT: No Debt )
ESNT' s 10-Year Interest Coverage Range
Min: 9999.99   Max: 9999.99
Current: No Debt

Z-Score: 6.73
WACC vs ROIC
1.97%
16.56%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 2/10

vs
industry
vs
history
Operating margin (%) 56.76
ESNT's Operating margin (%) is ranked higher than
95% of the 2349 Companies
in the Global Specialty Finance industry.

( Industry Median: 30.23 vs. ESNT: 56.76 )
ESNT' s 10-Year Operating margin (%) Range
Min: -438.54   Max: 56.76
Current: 56.76

-438.54
56.76
Net-margin (%) 36.96
ESNT's Net-margin (%) is ranked higher than
91% of the 2349 Companies
in the Global Specialty Finance industry.

( Industry Median: 22.25 vs. ESNT: 36.96 )
ESNT' s 10-Year Net-margin (%) Range
Min: -437.68   Max: 49.78
Current: 36.96

-437.68
49.78
ROE (%) 11.12
ESNT's ROE (%) is ranked higher than
83% of the 2352 Companies
in the Global Specialty Finance industry.

( Industry Median: 8.98 vs. ESNT: 11.12 )
ESNT' s 10-Year ROE (%) Range
Min: -38.12   Max: 13.9
Current: 11.12

-38.12
13.9
ROA (%) 9.11
ESNT's ROA (%) is ranked higher than
99% of the 2361 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.80 vs. ESNT: 9.11 )
ESNT' s 10-Year ROA (%) Range
Min: -31.95   Max: 11.5
Current: 9.11

-31.95
11.5
ROC (Joel Greenblatt) (%) 2752.78
ESNT's ROC (Joel Greenblatt) (%) is ranked higher than
99% of the 2323 Companies
in the Global Specialty Finance industry.

( Industry Median: 88.11 vs. ESNT: 2752.78 )
ESNT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -439.47   Max: 2651.72
Current: 2752.78

-439.47
2651.72
» ESNT's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2014

ESNT Guru Trades in Q1 2014

Ron Baron 2,906,165 sh (+0.43%)
George Soros 7,548,618 sh (unchged)
Caxton Associates 40,000 sh (unchged)
Lee Ainslie Sold Out
Steven Cohen Sold Out
» More
Q2 2014

ESNT Guru Trades in Q2 2014

RS Investment Management 1,615,300 sh (New)
George Soros 7,548,618 sh (unchged)
Caxton Associates Sold Out
Ron Baron 2,846,342 sh (-2.06%)
» More
Q3 2014

ESNT Guru Trades in Q3 2014

RS Investment Management 2,364,490 sh (+46.38%)
George Soros 7,548,618 sh (unchged)
Ron Baron 2,334,656 sh (-17.98%)
» More
Q4 2014

ESNT Guru Trades in Q4 2014

Louis Moore Bacon 384,812 sh (New)
Paul Tudor Jones 21,900 sh (New)
Steven Cohen 366,500 sh (New)
Ron Baron 2,618,456 sh (+12.16%)
RS Investment Management 2,328,853 sh (-1.51%)
George Soros 5,981,279 sh (-20.76%)
» More
» Details

Insider Trades

Latest Guru Trades with ESNT

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Guru Investment Theses on Essent Group Ltd

Baron Funds Comments on Essent Group Ltd. - Feb 24, 2014

During the recent housing market downturn, many mortgage insurers sustained heavy losses and some went out of business. Essent Group Ltd. (ESNT) is a mortgage insurance company that was formed in 2008 to take advantage of this market dislocation. Unlike many of its competitors, the company has a clean balance sheet with no legacy liabilities. It generates income by covering a portion of the default risk on residential mortgages.

In the next few years, we believe Essent Group is poised to benefit from three important growth opportunities. First, the cyclical recovery in housing and the expected increase of home purchases should benefit the company. Second, the company should also benefit from the secular shift from public mortgage insurance to private mortgage insurance (i.e. the U.S. government wants private capital to assume a greater role in the mortgage finance industry rather than the Federal Housing Administration or FHA). Lastly, Essent is well positioned to increase market share versus many of its competitors who are burdened by lingering legacy issues and are not as well capitalized. We are optimistic about the company's prospects and believe the company can significantly grow earnings in the next few years.



From Ron Baron (Trades, Portfolio)'s Baron Funds' fourth quarter 2013 commentary.

Check out Ron Baron latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 24.90
ESNT's P/E(ttm) is ranked higher than
64% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 19.00 vs. ESNT: 24.90 )
ESNT' s 10-Year P/E(ttm) Range
Min: 12.15   Max: 27.39
Current: 24.9

12.15
27.39
Forward P/E 12.87
ESNT's Forward P/E is ranked higher than
84% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.00 vs. ESNT: 12.87 )
N/A
PE(NRI) 23.90
ESNT's PE(NRI) is ranked higher than
69% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 18.80 vs. ESNT: 23.90 )
ESNT' s 10-Year PE(NRI) Range
Min: 12.15   Max: 27.39
Current: 23.9

12.15
27.39
P/B 2.20
ESNT's P/B is ranked higher than
55% of the 3173 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.42 vs. ESNT: 2.20 )
ESNT' s 10-Year P/B Range
Min: 1.98   Max: 3.01
Current: 2.2

1.98
3.01
P/S 9.20
ESNT's P/S is ranked lower than
53% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 3.80 vs. ESNT: 9.20 )
ESNT' s 10-Year P/S Range
Min: 7.31   Max: 20.74
Current: 9.2

7.31
20.74
PFCF 14.20
ESNT's PFCF is ranked higher than
78% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.00 vs. ESNT: 14.20 )
ESNT' s 10-Year PFCF Range
Min: 11.52   Max: 24.61
Current: 14.2

11.52
24.61
POCF 13.77
ESNT's POCF is ranked higher than
78% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 175.50 vs. ESNT: 13.77 )
ESNT' s 10-Year POCF Range
Min: 11.15   Max: 24.13
Current: 13.77

11.15
24.13
EV-to-EBIT 14.58
ESNT's EV-to-EBIT is ranked higher than
78% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 20.74 vs. ESNT: 14.58 )
ESNT' s 10-Year EV-to-EBIT Range
Min: 12   Max: 23.4
Current: 14.58

12
23.4
Days Sales Outstanding 24.10
ESNT's Days Sales Outstanding is ranked higher than
93% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.00 vs. ESNT: 24.10 )
ESNT' s 10-Year Days Sales Outstanding Range
Min: 24.1   Max: 40.44
Current: 24.1

24.1
40.44

Valuation & Return

vs
industry
vs
history
Price/Net Cash 257.60
ESNT's Price/Net Cash is ranked higher than
100% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.00 vs. ESNT: 257.60 )
ESNT' s 10-Year Price/Net Cash Range
Min: 5.78   Max: 257.1
Current: 257.6

5.78
257.1
Price/Net Current Asset Value 112.00
ESNT's Price/Net Current Asset Value is ranked higher than
99% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.00 vs. ESNT: 112.00 )
ESNT' s 10-Year Price/Net Current Asset Value Range
Min: 0   Max: 0
Current: 112

Price/Tangible Book 2.30
ESNT's Price/Tangible Book is ranked higher than
65% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.70 vs. ESNT: 2.30 )
ESNT' s 10-Year Price/Tangible Book Range
Min: 2.26   Max: 2.88
Current: 2.3

2.26
2.88
Price/Median PS Value 1.00
ESNT's Price/Median PS Value is ranked higher than
87% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.30 vs. ESNT: 1.00 )
ESNT' s 10-Year Price/Median PS Value Range
Min: 1.05   Max: 2.27
Current: 1

1.05
2.27
Price/Graham Number 1.70
ESNT's Price/Graham Number is ranked higher than
67% of the 3174 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.22 vs. ESNT: 1.70 )
ESNT' s 10-Year Price/Graham Number Range
Min: 1.72   Max: 2.02
Current: 1.7

1.72
2.02
Earnings Yield (Greenblatt) 6.90
ESNT's Earnings Yield (Greenblatt) is ranked higher than
71% of the 2339 Companies
in the Global Specialty Finance industry.

( Industry Median: 6.40 vs. ESNT: 6.90 )
ESNT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.3   Max: 8.3
Current: 6.9

4.3
8.3

Business Description

Industry: Banks » Specialty Finance
Compare: » details
Traded in other countries:EG0.Germany,
Essent Group Ltd was organized as a limited liability company under the laws of Bermuda on July 1, 2008. The Company is a private mortgage insurance company. The Company provides credit protection to lenders and mortgage investors by covering a portion of the unpaid principal balance of a mortgage in the event of a default. In doing so, it provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. The Company's products and services include Mortgage Insurance, Master Policy and Clarity of Coverage Endorsement, Contract Underwriting, and Triad Services. The Mortgage Insurance includes two principal types of private mortgage insurance, primary and pool. Primary Mortgage Insurance and Pool Insurance. Primary mortgage insurance provides protection on individual loans at specified coverage percentages. Primary mortgage insurance is typically offered to customers on individual loans at the time of origination on a flow basis. Substantially all of its policies are primary mortgage insurance. Pool insurance is typically used to provide additional credit enhancement for certain secondary market mortgage transactions. Pool insurance generally covers the excess of the loss on a defaulted mortgage loan that exceeds the claim payment under the primary coverage, if such loan has primary coverage, as well as the total loss on a defaulted mortgage loan that did not have primary coverage. The master policy sets forth the general terms and conditions of its mortgage insurance coverage, including loan eligibility requirements, coverage term, policy administration, payment processing, and exclusions or reductions in coverage. Mortgage insurance master policies generally protect mortgage insurers from the risk of material misrepresentations and fraud in the origination of an insured loan through remedies including the right to rescind coverage. Contract Underwriting includes assessing whether data provided by the customer relating to a mortgage application complies with the customer's loan underwriting guidelines. These services are provided for loans that require private mortgage insurance, as well as for loans that do not require private mortgage insurance. Triad Services include retaining the obligation for all risks insured under its existing insurance contracts and will continue to directly manage loss mitigation and claim activity on its insured business. Its customers consist of originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions and other lenders. The Company's competitors include CMG Mortgage Insurance Company, Genworth Financial Inc., Mortgage Guaranty Insurance Corporation, National Mortgage Insurance Corporation, Radian Guaranty Inc. and United Guaranty Corporation. The Company is subject to comprehensive, detailed regulation by Federal regulators and state insurance departments.
» More Articles for ESNT

Headlines

Articles On GuruFocus.com
Kyle Bass Thinks that a Nonbank Mortgage Servicer Is More Effective than Banks Mar 17 2014 
Baron Funds Comments on Essent Group Ltd. Feb 24 2014 
Bearish George Soros' 5 New Large Positions of Quarter Four Feb 20 2014 


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