📊 ESNT Key Takeaways
Is ESNT a Good Investment? Thesis Analysis
Essent Group demonstrates exceptional financial health with a fortress balance sheet (0.07x D/E), industry-leading profitability (54.7% net margin, 65.2% operating margin), and robust cash generation (67.3% FCF margin with $848.7M free cash flow). The company's 33.5x interest coverage and strong ROE of 12% indicate sustainable earnings quality despite modest revenue growth of 1.5% YoY.
Why Buy ESNT? Key Strengths
- Exceptional profitability with 54.7% net margin and 65.2% operating margin, significantly above industry norms for surety insurance
- Fortress balance sheet with only 0.07x debt-to-equity ratio and $123M cash position, providing substantial financial flexibility
- Outstanding cash generation with $848.7M operating cash flow and 67.3% FCF margin, supporting capital allocation and resilience
- Strong interest coverage of 33.5x indicates minimal financial distress risk with ample debt servicing capacity
ESNT Investment Risks to Consider
- Revenue growth of only 1.5% YoY suggests limited organic expansion and potential market saturation in mortgage insurance segment
- Net income declined 5.4% YoY despite stable revenue, indicating potential margin compression from underwriting challenges or increased claims
- Mortgage insurance industry is cyclical and sensitive to housing market downturns, interest rates, and credit conditions
- 11 Form 4 insider filings warrant monitoring for potential signaling of management confidence or concerns
Key Metrics to Watch
- Operating margin trend and underwriting profitability (monitoring for deterioration in insurance claims experience)
- Revenue growth acceleration or deceleration (tracking market share gains and mortgage origination volume)
- Free cash flow sustainability and capital allocation (dividends, buybacks, debt reduction)
- Debt-to-equity ratio and leverage policy (ensuring balance sheet discipline maintained)
ESNT Financial Metrics
💡 AI Analyst Insight
The 67.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ESNT Profitability Ratios
ESNT vs Finance Sector
How Essent Group Ltd. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ESNT Overvalued or Undervalued?
Based on fundamental analysis, Essent Group Ltd. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ESNT Balance Sheet & Liquidity
ESNT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Essent Group Ltd.'s revenue has grown significantly by 23% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.50 reflects profitable operations.
ESNT Growth Metrics (YoY)
ESNT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $311.8M | $164.2M | $1.65 |
| Q2 2025 | $312.9M | $195.3M | $1.91 |
| Q1 2025 | $298.4M | $175.4M | $1.69 |
| Q3 2024 | $296.1M | $176.2M | $1.65 |
| Q2 2024 | $260.1M | $172.2M | $1.61 |
| Q1 2024 | $256.2M | $170.8M | $1.59 |
| Q3 2023 | $261.8M | $178.0M | $1.66 |
| Q2 2023 | $244.4M | $172.2M | $1.61 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ESNT Capital Allocation
ESNT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Essent Group Ltd. (CIK: 0001448893)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772506728.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772506722.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772506716.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772506710.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772506704.xml | View → |
❓ Frequently Asked Questions about ESNT
What is the AI rating for ESNT?
Essent Group Ltd. (ESNT) has an AI rating of STRONG BUY with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESNT's key strengths?
Claude: Exceptional profitability with 54.7% net margin and 65.2% operating margin, significantly above industry norms for surety insurance. Fortress balance sheet with only 0.07x debt-to-equity ratio and $123M cash position, providing substantial financial flexibility.
What are the risks of investing in ESNT?
Claude: Revenue growth of only 1.5% YoY suggests limited organic expansion and potential market saturation in mortgage insurance segment. Net income declined 5.4% YoY despite stable revenue, indicating potential margin compression from underwriting challenges or increased claims.
What is ESNT's revenue and growth?
Essent Group Ltd. reported revenue of $1.3B.
Does ESNT pay dividends?
Essent Group Ltd. pays dividends, with $122.1M distributed to shareholders in the trailing twelve months.
Where can I find ESNT SEC filings?
Official SEC filings for Essent Group Ltd. (CIK: 0001448893) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ESNT's EPS?
Essent Group Ltd. has a diluted EPS of $6.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ESNT a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Essent Group Ltd. has a STRONG BUY rating with 88% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ESNT stock overvalued or undervalued?
Valuation metrics for ESNT: ROE of 12.0% (sector avg: 12%), net margin of 54.7% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy ESNT stock in 2026?
Our dual AI analysis gives Essent Group Ltd. a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ESNT's free cash flow?
Essent Group Ltd.'s operating cash flow is $856.1M, with capital expenditures of $7.4M. FCF margin is 67.3%.
How does ESNT compare to other Finance stocks?
Vs Finance sector averages: Net margin 54.7% (avg: 25%), ROE 12.0% (avg: 12%), current ratio N/A (avg: 1.2).