Last Updated: 12 Nov 2024
Executive Summary
Essent Group Ltd. (ESNT) is a leading provider of private mortgage insurance and reinsurance in the United States. The company has a strong financial position with a market capitalization of $5.87 billion, EBITDA of $904.4 million, and a trailing PE ratio of 8.01. Analysts are bullish on ESNT, with a consensus target price of $65.89 and four strong buy ratings. The stock's current price of $56 is below its 52-week high of $65.33, providing a potential buying opportunity.
Company Overview
Essent Group Ltd. was founded in 1998 and is headquartered in Hamilton, Bermuda. The company provides mortgage insurance and reinsurance to lenders and investors in the United States. Essent's products protect lenders from losses on mortgages that go into default. The company has a strong track record of profitability and has paid dividends to shareholders for over 20 years.
Fundamental Analysis
Essent Group Ltd. has a solid financial foundation. The company's revenue has grown by an average of 8.5% over the past five years, and its net income has grown by an average of 10.2% over the same period. Essent's profit margin is 62.2%, and its operating margin is 71.4%. The company's return on assets is 8.5%, and its return on equity is 14.1%.
Essent's balance sheet is also strong. The company has $1.1 billion in cash and equivalents and $1.5 billion in total debt. Essent's debt-to-equity ratio is 0.59, which is below the industry average.
Technical Analysis
Essent Group Ltd.'s stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is 62, which indicates that the stock is overbought. However, the moving average convergence divergence (MACD) is positive, which indicates that the stock is still in a bullish trend.
Short Term Outlook
Essent Group Ltd.'s stock price is expected to continue to rise in the short term. The company's strong financial performance and positive analyst sentiment are expected to drive the stock higher. The stock's current price of $56 is below its 52-week high, providing a potential buying opportunity.
Long Term Outlook
Essent Group Ltd. is a well-positioned company with a strong track record of growth and profitability. The company's long-term outlook is positive. The growing demand for mortgage insurance and reinsurance in the United States is expected to drive Essent's growth in the years to come.
Analyst Recommendations
Analysts are bullish on Essent Group Ltd. The consensus target price is $65.89, which represents a potential upside of 17.8% from the current price. Four analysts have a strong buy rating on the stock, four have a buy rating, and three have a hold rating. No analysts have a sell or strong sell rating on the stock.
