Essent Group Stock Fair Value Calculator – ESSENT Group Receives Overweight Rating from Barclays, Positive Revenue Outlook Ahead

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Essent Group ($NYSE:ESNT), a Bermuda-based provider of mortgage insurance and reinsurance, has recently been given an Overweight rating by Barclays, indicating a positive revenue outlook. The Overweight rating was announced by Investing.com, signifying confidence in the stock from one of the world’s leading financial institutions. Essent Group is a publicly traded company that offers mortgage insurance and reinsurance. It is headquartered in Hamilton, Bermuda and has offices in the US, Canada, the UK, Spain, and Ireland. They offer products and services to both residential and commercial mortgage areas, providing financial protection to lenders when borrowers are unable to repay their loan. Barclays’ Overweight rating is based on Essent Group’s continued expansion across the US and international markets, as well as its strong revenue growth projections for the coming years.

The company has reported solid year-over-year revenue growth for the past five consecutive years, and analysts at Barclays are confident this growth will continue. They also expect the company to benefit from its diversification into different markets, allowing it to take advantage of opportunities created by the changing economic landscape. Overall, the Overweight rating from Barclays reflects a positive outlook on Essent Group’s future performance and potential for further growth and expansion. With continued growth in the US and global markets, investors can be confident that Essent Group is well placed to take advantage of future opportunities and capitalize on its current success.

Earnings

The latest earning report of ESSENT GROUP as of September 30 2021 revealed a net income of 205.35M USD and total revenue of 242.8M USD. Compared to the same period in the previous year, ESSENT GROUP experienced a 3.7% decrease in total revenue, yet a 15.3% increase in net income. Due to this positive financial outlook, Barclays recently gave the company an overweight rating.

Moreover, ESSENT GROUP has seen their total revenue increase steadily over the last 3 years, from 242.8M USD to 299.25M USD. This reflects the company’s strong ability to achieve growth and success despite challenging market conditions.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Essent Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Essent Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Essent Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Essent Group are shown below. More…

Stock Price

Barclays gave ESSENT GROUP an overweight rating on Thursday, indicating a positive outlook for the company’s future revenue. Despite this positive outlook, ESSENT GROUP’s stock opened at $49.3 and closed at $47.7, down by 2.9% from its prior closing price of 49.2. This drop could be attributed to investors responding to the initial news of the rating. It is possible that once the news has been digested by the market, the stock may rebound due to the positive outlook from Barclays. Live Quote…

Analysis – Essent Group Stock Fair Value Calculator

GoodWhale recently conducted an analysis of ESSENT GROUP‘s wellbeing and arrived at a fair value of their shares of around $48.3. This conclusion was drawn from our proprietary Valuation Line tool, which takes into consideration various financial indicators such as cash flow, earnings, revenue and market capitalization. Currently, ESSENT GROUP’s shares are being traded at $47.7, which is slightly undervalued by 1.3%. This difference in price could indicate an opportunity for investors to purchase the stock at a good price. We believe that, given the current state of the market and the company’s financial performance, there is potential for the stock to appreciate in value in the near future. 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 (ESNT) has recently been given an Overweight rating from Barclays, indicating a positive outlook for the company. The investment bank’s analysis of the company showed improved revenue potential in both the short and long term. Essent Group is primarily an insurance provider for mortgage-related risks, as well as various other mortgage-related services. The company has had a strong track record of financial performance, with increased customer satisfaction and higher returns on investments.

Barclays noted that this trend is likely to continue in the coming years, making it a good investment choice. Investors should consider this rating when making decisions on investing in Essent Group Ltd.