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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
98% of the 1566 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.48 vs. ESNT: No Debt )
ESNT' s 10-Year Cash to Debt Range
Min: No Debt   Max: No Debt
Current: No Debt

Equity to Asset 0.80
ESNT's Equity to Asset is ranked higher than
99% of the 2010 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.09 vs. ESNT: 0.80 )
ESNT' s 10-Year Equity to Asset Range
Min: 0.77   Max: 0.85
Current: 0.8

0.77
0.85
Interest Coverage No Debt
ESNT's Interest Coverage is ranked higher than
98% of the 1837 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.30 vs. ESNT: No Debt )
ESNT' s 10-Year Interest Coverage Range
Min: 9999.99   Max: 9999.99
Current: No Debt

Z-Score: 7.17
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 (%) 53.21
ESNT's Operating margin (%) is ranked higher than
95% of the 2021 Companies
in the Global Specialty Finance industry.

( Industry Median: 29.33 vs. ESNT: 53.21 )
ESNT' s 10-Year Operating margin (%) Range
Min: -438.54   Max: 44.16
Current: 53.21

-438.54
44.16
Net-margin (%) 37.62
ESNT's Net-margin (%) is ranked higher than
93% of the 2021 Companies
in the Global Specialty Finance industry.

( Industry Median: 21.41 vs. ESNT: 37.62 )
ESNT' s 10-Year Net-margin (%) Range
Min: -437.68   Max: 49.78
Current: 37.62

-437.68
49.78
ROE (%) 11.52
ESNT's ROE (%) is ranked higher than
86% of the 2031 Companies
in the Global Specialty Finance industry.

( Industry Median: 8.59 vs. ESNT: 11.52 )
ESNT' s 10-Year ROE (%) Range
Min: -38.12   Max: 13.9
Current: 11.52

-38.12
13.9
ROA (%) 9.41
ESNT's ROA (%) is ranked higher than
99% of the 2034 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.80 vs. ESNT: 9.41 )
ESNT' s 10-Year ROA (%) Range
Min: -31.95   Max: 11.5
Current: 9.41

-31.95
11.5
ROC (Joel Greenblatt) (%) 2402.23
ESNT's ROC (Joel Greenblatt) (%) is ranked higher than
99% of the 2003 Companies
in the Global Specialty Finance industry.

( Industry Median: 76.89 vs. ESNT: 2402.23 )
ESNT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -439.47   Max: 1444
Current: 2402.23

-439.47
1444
» ESNT's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

ESNT Guru Trades in Q4 2013

Steven Cohen 679,748 sh (New)
George Soros 7,548,618 sh (New)
Lee Ainslie 300,000 sh (New)
Caxton Associates 40,000 sh (New)
Ron Baron 2,893,580 sh (New)
» More
Q1 2014

ESNT Guru Trades in Q1 2014

Ron Baron 2,906,165 sh (+0.43%)
Caxton Associates 40,000 sh (unchged)
George Soros 7,548,618 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
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Lee Ainslie 2014-03-31 Sold Out 0.09%$22.18 - $25.87 $ 24.984%0
George Soros 2013-12-31 New Buy1.5%$20.48 - $23.65 $ 24.9814%7548618
Ron Baron 2013-12-31 New Buy0.29%$20.48 - $23.65 $ 24.9814%2893580
Lee Ainslie 2013-12-31 New Buy0.09%$20.48 - $23.65 $ 24.9814%300000
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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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

Top Ranked Articles about Essent Group Ltd

Baron Funds Comments on Essent Group Ltd.
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. Read more...
George Soros' 5 Largest Buys Amid Bet Against the S&P 500
Legendary investor George Soros (Trades, Portfolio)’ Soros Fund Management LLC selected 77 new stocks for their $11.8 billion portfolio, which calculates to 30% quarter-over-quarter turnover in the total count of 237 long positions. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 27.20
ESNT's P/E(ttm) is ranked higher than
68% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 17.80 vs. ESNT: 27.20 )
ESNT' s 10-Year P/E(ttm) Range
Min: 12.15   Max: 27.39
Current: 27.2

12.15
27.39
P/B 2.70
ESNT's P/B is ranked higher than
61% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.33 vs. ESNT: 2.70 )
ESNT' s 10-Year P/B Range
Min: 1.98   Max: 3.01
Current: 2.7

1.98
3.01
P/S 2.16
ESNT's P/S is ranked higher than
61% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 3.56 vs. ESNT: 2.16 )
ESNT' s 10-Year P/S Range
Min: 7.31   Max: 20.74
Current: 2.16

7.31
20.74
PFCF 14.60
ESNT's PFCF is ranked higher than
81% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 9999.00 vs. ESNT: 14.60 )
ESNT' s 10-Year PFCF Range
Min: 11.52   Max: 24.61
Current: 14.6

11.52
24.61
EV-to-EBIT 17.78
ESNT's EV-to-EBIT is ranked higher than
73% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 19.47 vs. ESNT: 17.78 )
ESNT' s 10-Year EV-to-EBIT Range
Min: 12   Max: 23.4
Current: 17.78

12
23.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.70
ESNT's Price/Tangible Book is ranked higher than
63% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.58 vs. ESNT: 2.70 )
ESNT' s 10-Year Price/Tangible Book Range
Min: 2.28   Max: 2.88
Current: 2.7

2.28
2.88
Price/Median PS Value 1.00
ESNT's Price/Median PS Value is ranked higher than
87% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.21 vs. ESNT: 1.00 )
ESNT' s 10-Year Price/Median PS Value Range
Min: 0.89   Max: 2.24
Current: 1

0.89
2.24
Price/Graham Number 1.80
ESNT's Price/Graham Number is ranked higher than
66% of the 2636 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.15 vs. ESNT: 1.80 )
ESNT' s 10-Year Price/Graham Number Range
Min: 1.58   Max: 2.02
Current: 1.8

1.58
2.02
Earnings Yield (Greenblatt) 5.50
ESNT's Earnings Yield (Greenblatt) is ranked higher than
70% of the 1996 Companies
in the Global Specialty Finance industry.

( Industry Median: 6.60 vs. ESNT: 5.50 )
ESNT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.3   Max: 8.3
Current: 5.5

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 

More From Other Websites
Stock Charts Of ServiceNow, Essent Group Improve Dec 17 2014
Essent Makes Strong Ascent Into Mortgage Insurance Dec 16 2014
Radian Comes Up with Mixed November Results, Shares Fall Dec 11 2014
MGIC November Operating Numbers Reveal Steady Business Dec 09 2014
Bear of the Day: JG Wentworth (JGW) Dec 02 2014
Goldman Sells Partial Stake in Bermuda Mortgage Insurer Essent Dec 01 2014
ESSENT GROUP LTD. Files SEC form 8-K, Other Events, Financial Statements and Exhibits Nov 25 2014
ESSENT GROUP LTD. Financials Nov 22 2014
Essent Guaranty, Inc. CEO Mark Casale Named National Financial Services Winner of EY Entrepreneur of... Nov 21 2014
Essent Guaranty, Inc. CEO Mark Casale Named National Financial Services Winner of EY Entrepreneur of... Nov 21 2014
Essent Group Ltd. Prices Public Offering of Common Shares Nov 20 2014
Essent Group Ltd. Prices Public Offering of Common Shares Nov 19 2014
Essent Falls as Goldman, Soros Plan to Reduce Stakes in Insurer Nov 18 2014
Essent Offering of Shares Poised to Raise $285 Million Nov 17 2014
Essent Group Ltd. Announces Offering of 12,000,000 Common Shares Nov 17 2014
Essent Group Ltd. Announces Offering of 12,000,000 Common Shares Nov 17 2014
ESSENT GROUP LTD. Files SEC form 10-Q, Quarterly Report Nov 14 2014
Essent Group, Talmer Beat Profit Expectations Nov 12 2014
Essent Executive Vice President, Adolfo Marzol, to Retire March 31, 2015 Nov 11 2014
Essent Executive Vice President, Adolfo Marzol, to Retire March 31, 2015 Nov 11 2014

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