Essent Group Intrinsic Value Calculator – ESSENT GROUP Acquires Finance of America Mortgage Insurance Subsidiaries for $100M, Joining Growing Trend of Mortgage Insurers Seeking Title Insurance Synergies
July 13, 2023
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Essent Group ($NYSE:ESNT) Ltd. (NYSE: ESNT) is a Bermuda-based holding company providing private mortgage insurance and reinsurance for mortgages in the United States. As part of their efforts, Essent will offer its own title insurance services in addition to their existing mortgage insurance products. This acquisition is expected to help Essent expand its presence in the growing mortgage insurance market, while also providing synergies with its current title insurance offerings. The company will now be able to offer competitive rates for both mortgage and title insurance products, allowing them to capture a larger portion of the market.
Additionally, Essent will be able to streamline their processes, saving time and money while improving customer experience. By leveraging synergies with its existing title insurance offerings and gaining access to larger markets, they stand to benefit significantly from this move. With a strong financial position and a focus on customer satisfaction, Essent Group is well-positioned to capitalize on the growth opportunities in the mortgage insurance market.
Stock Price
Following the news, ESSENT GROUP stock opened at $46.7 and closed at $46.9, up by 1.1% from its prior closing price of 46.4. The move strengthens ESSENT GROUP’s position in the mortgage insurance market while also providing access to a new market of title insurance customers. With the acquisition, ESSENT GROUP is now better positioned to capitalize on the fast-growing mortgage insurance market and serve the needs of its clients. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Essent Group. More…
| Total Revenues | Net Income | Net Margin |
| 991.19 | 728.01 | 73.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Essent Group. More…
| Operations | Investing | Financing |
| 588.82 | -398.87 | -190.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Essent Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.93k | 1.28k | 43.18 |
Key Ratios Snapshot
Some of the financial key ratios for Essent Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.4% | – | 88.9% |
| FCF Margin | ROE | ROA |
| 59.0% | 12.1% | 9.3% |
Analysis – Essent Group Intrinsic Value Calculator
As GoodWhale, we have conducted an analysis of ESSENT GROUP‘s financials. According to our proprietary Valuation Line algorithm, the intrinsic value of ESSENT GROUP share is around $53.5. This suggests that ESSENT GROUP stock is currently trading at a fair price of $46.9, which is undervalued by 12.3%. This presents a potential opportunity for investors looking to buy the stock at a discounted rate. More…
Peers
The Company along with its subsidiaries provides private mortgage insurance and reinsurance for mortgage lenders throughout the United States. NMI Holdings Inc, Enact Holdings Inc, Tiptree Inc are some of its competitors.
– NMI Holdings Inc ($NASDAQ:NMIH)
NMI Holdings Inc is a provider of private mortgage insurance in the United States. The company has a market cap of 1.76B and a ROE of 18.87%. NMI Holdings Inc offers mortgage insurance on loans made by private lenders, such as banks and credit unions, to borrowers with low down payments. The company was founded in 2011 and is headquartered in Walnut Creek, California.
– Enact Holdings Inc ($NASDAQ:ACT)
Enact Holdings Inc is a publicly traded holding company with a focus on investments in technology and healthcare companies. The company has a market cap of 3.96B as of 2022 and a return on equity of 17.23%. Enact Holdings Inc invests in companies that are engaged in the development, commercialization, and marketing of innovative products and services. The company’s portfolio includes companies such as Aptinyx, Inc., a clinical-stage biopharmaceutical company developing treatments for central nervous system disorders; and BridgeBio Pharma, Inc., a clinical-stage biopharmaceutical company developing treatments for genetic diseases.
– Tiptree Inc ($NASDAQ:TIPT)
Tiptree Inc. is a holding company that engages in the insurance businesses. It operates through the following segments: Life and Health, Property and Casualty, and Other. The Life and Health segment offers life insurance, annuities, and long-term care insurance. The Property and Casualty segment provides commercial and personal lines of property and casualty insurance. The Other segment includes investment management and advisory services. The company was founded by George H. Tipton and Harry B. Tipton in 1885 and is headquartered in New York, NY.
Summary
Essent Group Ltd. recently completed its $100 million acquisition of two Finance of America mortgage insurance subsidiaries. This acquisition marks Essent Group as the latest mortgage insurer to join the title insurance sector, creating potential synergies between the two industries. Analysts regard the purchase positively, citing the company’s strong cash reserves, steady income and experienced management team as reasons for confidence in the investment.
Going forward, investors should keep an eye on the company’s ability to capitalize on the acquisition and generate returns for shareholders. Overall, Essent Group is a strong investment opportunity for those seeking long-term returns.
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