ESSENT GROUP Reports Record Fourth Quarter Earnings for Fiscal Year 2022 Ending February 10, 2023
March 27, 2023
Earnings Overview
ESSENT GROUP ($NYSE:ESNT) reported a total revenue of USD 147.4 million for the fourth quarter of their fiscal year 2022, ending February 10, 2023, on December 31, 2022; this represented a decrease of 18.6% year over year. Reported net income was USD 237.6 million, which was a slight dip of 1.8% compared to the same period in the prior year.
Transcripts Simplified
Essent Group is looking at their recent acquisitions of BNC and Ante as similar to the platform they bought from Triad in 2009. They plan to invest in infrastructure, people, back office functions, technology, and operational improvements in order to increase profitability in the long term. They understand the MI business well, but it is a new industry for them and they plan to take their time and apply their operational expertise to it. In the end, they believe that it is complementary to the MI business and will help them grow Essent over time.
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 |
| 972.15 | 831.35 | 85.5% |
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 |
| 5.72k | 1.26k | 41.44 |
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 |
| 3.9% | – | 103.3% |
| FCF Margin | ROE | ROA |
| 60.2% | 14.3% | 11.0% |
Price History
ESSENT GROUP reported record fourth quarter earnings on Friday, with its stock opening at $41.9 and closing at $42.3, down by 0.2% from its previous closing price of 42.4. The increase in revenue was driven by higher sales from the company’s various business segments, particularly its insurance business. This was attributed to higher operating income and improved capital efficiencies. Overall, the results demonstrate that ESSENT GROUP continues to be a successful and profitable company.
Despite the challenging economic environment, the company has managed to maintain its impressive financial performance, showing that it can thrive even during difficult times. The company is well positioned to continue to grow in the years ahead. Live Quote…
Analysis
We have analyzed the financials of ESSENT GROUP and have identified it as a ‘rhino’ on our Star Chart. This means that the company has achieved moderate revenue or earnings growth. On the Star Chart, ESSENT GROUP is rated as strong in asset, dividend, and growth, but weak in profitability. We believe this type of company might be of interest to value investors, dividend hunters, and those who are looking for long-term growth opportunities. One of the most important factors we consider is the health score of a company. We rate ESSENT GROUP at 8/10 with regard to its cashflows and debt. This indicates that the company is well-positioned to sustain future operations in times of crisis. More…
Peers
The Company along with its subsidiaries provides private mortgage insurance and reinsurance for mortgage lenders throughout the United States. NMI Holdings Inc, Enact Holdings Inc, Tiptree Inc are some of its competitors.
– NMI Holdings Inc ($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
Investors have an overall positive outlook on ESSENT GROUP’s latest earnings results for the fourth quarter of fiscal year 2022. The company reported total revenue of USD 147.4 million, a decrease of 18.6% year over year. Net income was USD 237.6 million, a slight dip of 1.8% compared to the same period last year.
Although total revenue decreased, net income was relatively stable, indicating that the company is managing its costs efficiently. This suggests that ESSENT GROUP is doing well and is a promising investment opportunity.
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