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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 : 7/10

vs
industry
vs
history
Cash to Debt No Debt
ESNT's Cash to Debt is ranked higher than
95% of the 970 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.49 vs. ESNT: No Debt )
Ranked among companies with meaningful Cash to Debt only.
ESNT' s 10-Year Cash to Debt Range
Min: N/A  Med: 10000.00 Max: No Debt
Current: No Debt

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N/A
No Debt
Equity to Asset 0.80
ESNT's Equity to Asset is ranked higher than
98% of the 1323 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.10 vs. ESNT: 0.80 )
Ranked among companies with meaningful Equity to Asset only.
ESNT' s 10-Year Equity to Asset Range
Min: 0.77  Med: 0.81 Max: 0.85
Current: 0.8
0.77
0.85
Interest Coverage No Debt
ESNT's Interest Coverage is ranked higher than
95% of the 1239 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.65 vs. ESNT: No Debt )
Ranked among companies with meaningful Interest Coverage only.
ESNT' s 10-Year Interest Coverage Range
Min: 9999.99  Med: 10000.00 Max: 9999.99
Current: No Debt
F-Score: 4
WACC vs ROIC
2.28%
16.39%
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 : 3/10

vs
industry
vs
history
Operating margin (%) 60.00
ESNT's Operating margin (%) is ranked higher than
92% of the 1388 Companies
in the Global Specialty Finance industry.

( Industry Median: 29.90 vs. ESNT: 60.00 )
Ranked among companies with meaningful Operating margin (%) only.
ESNT' s 10-Year Operating margin (%) Range
Min: -438.54  Med: -28.48 Max: 56.76
Current: 60
-438.54
56.76
Net-margin (%) 39.88
ESNT's Net-margin (%) is ranked higher than
87% of the 1388 Companies
in the Global Specialty Finance industry.

( Industry Median: 21.60 vs. ESNT: 39.88 )
Ranked among companies with meaningful Net-margin (%) only.
ESNT' s 10-Year Net-margin (%) Range
Min: -437.68  Med: -27.80 Max: 49.78
Current: 39.88
-437.68
49.78
ROE (%) 12.73
ESNT's ROE (%) is ranked higher than
76% of the 1390 Companies
in the Global Specialty Finance industry.

( Industry Median: 8.16 vs. ESNT: 12.73 )
Ranked among companies with meaningful ROE (%) only.
ESNT' s 10-Year ROE (%) Range
Min: -38.12  Med: 1.85 Max: 13.9
Current: 12.73
-38.12
13.9
ROA (%) 10.31
ESNT's ROA (%) is ranked higher than
99% of the 1399 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.84 vs. ESNT: 10.31 )
Ranked among companies with meaningful ROA (%) only.
ESNT' s 10-Year ROA (%) Range
Min: -31.95  Med: 1.61 Max: 11.5
Current: 10.31
-31.95
11.5
ROC (Joel Greenblatt) (%) 2874.34
ESNT's ROC (Joel Greenblatt) (%) is ranked higher than
98% of the 1381 Companies
in the Global Specialty Finance industry.

( Industry Median: 76.24 vs. ESNT: 2874.34 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
ESNT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -439.47  Med: 650.12 Max: 2651.72
Current: 2874.34
-439.47
2651.72
» ESNT's 10-Y Financials

Financials


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

» Details

Guru Trades

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

Steven Cohen 366,500 sh (New)
Paul Tudor Jones 21,900 sh (New)
Louis Moore Bacon 384,812 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
Q1 2015

ESNT Guru Trades in Q1 2015

Jim Simons 140,500 sh (New)
Louis Moore Bacon 500,000 sh (+29.93%)
Steven Cohen 399,200 sh (+8.92%)
RS Investment Management 2,423,837 sh (+4.08%)
George Soros 5,981,279 sh (unchged)
Ron Baron 1,480,950 sh (-43.44%)
Paul Tudor Jones 8,800 sh (-59.82%)
» More
» Details

Insider Trades

Latest Guru Trades with ESNT

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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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. (NYSE: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) 23.86
ESNT's P/E(ttm) is ranked lower than
82% of the 1251 Companies
in the Global Specialty Finance industry.

( Industry Median: 13.80 vs. ESNT: 23.86 )
Ranked among companies with meaningful P/E(ttm) only.
ESNT' s 10-Year P/E(ttm) Range
Min: 19.41  Med: 26.10 Max: 114.09
Current: 23.86
19.41
114.09
Forward P/E 14.20
ESNT's Forward P/E is ranked lower than
70% of the 710 Companies
in the Global Specialty Finance industry.

( Industry Median: 12.17 vs. ESNT: 14.20 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 23.70
ESNT's PE(NRI) is ranked lower than
82% of the 1248 Companies
in the Global Specialty Finance industry.

( Industry Median: 13.80 vs. ESNT: 23.70 )
Ranked among companies with meaningful PE(NRI) only.
ESNT' s 10-Year PE(NRI) Range
Min: 19.38  Med: 26.10 Max: 114.09
Current: 23.7
19.38
114.09
P/B 2.73
ESNT's P/B is ranked lower than
94% of the 1349 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.10 vs. ESNT: 2.73 )
Ranked among companies with meaningful P/B only.
ESNT' s 10-Year P/B Range
Min: 1.98  Med: 2.37 Max: 3.01
Current: 2.73
1.98
3.01
P/S 9.46
ESNT's P/S is ranked lower than
94% of the 1371 Companies
in the Global Specialty Finance industry.

( Industry Median: 2.99 vs. ESNT: 9.46 )
Ranked among companies with meaningful P/S only.
ESNT' s 10-Year P/S Range
Min: 7.31  Med: 8.71 Max: 20.74
Current: 9.46
7.31
20.74
PFCF 13.94
ESNT's PFCF is ranked lower than
60% of the 803 Companies
in the Global Specialty Finance industry.

( Industry Median: 11.27 vs. ESNT: 13.94 )
Ranked among companies with meaningful PFCF only.
ESNT' s 10-Year PFCF Range
Min: 11.35  Med: 13.76 Max: 24.61
Current: 13.94
11.35
24.61
POCF 13.57
ESNT's POCF is ranked lower than
68% of the 916 Companies
in the Global Specialty Finance industry.

( Industry Median: 9.79 vs. ESNT: 13.57 )
Ranked among companies with meaningful POCF only.
ESNT' s 10-Year POCF Range
Min: 11.04  Med: 13.35 Max: 24.13
Current: 13.57
11.04
24.13
EV-to-EBIT 15.85
ESNT's EV-to-EBIT is ranked lower than
58% of the 1255 Companies
in the Global Specialty Finance industry.

( Industry Median: 13.99 vs. ESNT: 15.85 )
Ranked among companies with meaningful EV-to-EBIT only.
ESNT' s 10-Year EV-to-EBIT Range
Min: 12  Med: 14.90 Max: 23.4
Current: 15.85
12
23.4
Days Sales Outstanding 21.18
ESNT's Days Sales Outstanding is ranked higher than
78% of the 769 Companies
in the Global Specialty Finance industry.

( Industry Median: 33.98 vs. ESNT: 21.18 )
Ranked among companies with meaningful Days Sales Outstanding only.
ESNT' s 10-Year Days Sales Outstanding Range
Min: 24.1  Med: 32.23 Max: 40.44
Current: 21.18
24.1
40.44

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.71
ESNT's Price/Tangible Book is ranked lower than
93% of the 1328 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.18 vs. ESNT: 2.71 )
Ranked among companies with meaningful Price/Tangible Book only.
ESNT' s 10-Year Price/Tangible Book Range
Min: 2.22  Med: 2.33 Max: 2.88
Current: 2.71
2.22
2.88
Price/Median PS Value 1.08
ESNT's Price/Median PS Value is ranked higher than
51% of the 1280 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.09 vs. ESNT: 1.08 )
Ranked among companies with meaningful Price/Median PS Value only.
ESNT' s 10-Year Price/Median PS Value Range
Min: 0.89  Med: 1.01 Max: 2.29
Current: 1.08
0.89
2.29
Price/Graham Number 1.73
ESNT's Price/Graham Number is ranked lower than
93% of the 1155 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.86 vs. ESNT: 1.73 )
Ranked among companies with meaningful Price/Graham Number only.
ESNT' s 10-Year Price/Graham Number Range
Min: 1.42  Med: 1.60 Max: 2.02
Current: 1.73
1.42
2.02
Earnings Yield (Greenblatt) (%) 6.36
ESNT's Earnings Yield (Greenblatt) (%) is ranked lower than
52% of the 1372 Companies
in the Global Specialty Finance industry.

( Industry Median: 6.70 vs. ESNT: 6.36 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
ESNT' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 4.3  Med: 6.70 Max: 8.3
Current: 6.36
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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