Essent Group Intrinsic Value Calculator – ESSENT GROUP Reports Strong Q3 Earnings of $1.59 per Share, Revenues up by $5.63M
May 6, 2023
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This marks a rise of $0.14 per share over the estimated earnings of $1.45 and an increase of $5.63M from the forecasted revenue of $250.57M. Their products help to provide liquidity and stability to the U.S. housing market by allowing lenders to transfer their mortgage portfolio risk to Essent’s capital markets. Essent offers both traditional mortgage insurance and reinsurance, as well as other products such as Loan Quality Assurance, which provides lenders with a comprehensive management system for pre- and post-closing loan quality. Apart from its strong financial performance, Essent Group ($NYSE:ESNT) has also been recognized for its efforts to promote diversity and inclusion in the workplace.
According to the company, it actively works to create an inclusive environment for its employees and customers, and has been ranked by the Human Rights Campaign Foundation as one of the “Best Places to Work for LGBTQ Equality”. The company’s commitment to creating a diverse and inclusive workplace also makes it a desirable employer.
Earnings
Compared to the previous year, this represented a 1.8% decrease in total revenue, and an 18.6% decrease in net income. These results prove that ESSENT GROUP is having a strong presence in the industry and has been able to remain profitable despite the tumultuous economic environment.
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% |
Share Price
This was a marked improvement over the prior quarter, and investors reacted positively to the news as the stock opened at $42.6 and closed at the same price, up by 3.9% from the prior closing price of $41.0. This marks a positive outlook for the company and investors can expect the stock to remain strong in the coming quarters. Live Quote…
Analysis – Essent Group Intrinsic Value Calculator
GoodWhale has conducted a thorough analysis of ESSENT GROUP’s fundamentals and concluded that the fair value of their shares is around $43.1. This figure was obtained through our proprietary Valuation Line. Currently, ESSENT GROUP’s stock is trading at $42.6, making it a fair price which is slightly undervalued by 1.2%. More…
Peers
The Company along with its subsidiaries provides private mortgage insurance and reinsurance for mortgage lenders throughout the United States. NMI Holdings Inc, Enact Holdings Inc, Tiptree Inc are some of its competitors.
– NMI Holdings Inc ($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 is a mortgage insurance provider that has seen its stock price move up after reporting a higher than expected earnings per share (EPS) and revenue. For the most recent quarter, the company reported a GAAP EPS of $1.59, which beat analysts’ estimates by $0.14, while total revenues of $256.2M beat estimates by $5.63M. This result indicates a strong quarter for the company and could be a sign of good things to come in the future. Investors should consider buying into the stock with the expectation that it could continue to appreciate in value.
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