Essent Group Ltd. Common Shares (ESNT) Company Bio
Essent Group provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company was founded in 2008 and is based in Hamilton, Bermuda.
ESNT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ESNT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Essent Group Ltd ranked in the 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 401.17%. In terms of the factors that were most noteworthy in this DCF analysis for ESNT, they are:
Interest coverage, a measure of earnings relative to interest payments, is 58.07; that's higher than 94.17% of US stocks in the Financial Services sector that have positive free cash flow.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately merely 22.05% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ESNT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.79% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HRTG, FOCS, CPTA, DGICA, and GNW can be thought of as valuation peers to ESNT, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” of the operating subsidiaries of Essent Group Ltd., which are Essent Guaranty, Inc., Essent Guaranty of PA, Inc. (both domiciled in Radnor, PA) and Essent Reinsurance Ltd. (Bermuda) (collectively referred to as Essent). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Essent’s balance sheet strength, which AM Best categorizes
Essent Group's ([[ESNT]] +2.2%), primary U.S. mortgage insurance subsidiary, reported 4.78% of loans in default as of August 31, 2020.Insurance in force as of August 31, 2020 stood at $186.1B; roll-forward of insured loans stood at $36.8B....
Essent Group Ltd. (ESNT) Q2 2020 Earnings Conference Call August 7, 2020 10:00 ET Company Participants Christopher Curran - Senior Vice President, Corporate Development Mark Casale - Chairman, Chief Executive Officer & President Lawrence McAlee - Senior Vice President & Chief Financial Officer Conference Call Participants Phil Stefano - Deutsche...