Is Essent Group Ltd. (ESNT) Overvalued?
We dive into why Essent Group Ltd. (ESNT) could be considered overvalued on 2026-07-28, based on AAII’s Value Score and Grade.Michael Rose
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COMPANY SUMMARY
Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance, and title insurance and settlement services to mortgage lenders, borrowers, and investors in the United States. It operates through two segments, Mortgage Insurance and Reinsurance. The company’s mortgage insurance products include primary, pool, and master policy. It also provides information technology maintenance and development services; customer support-related services; underwriting consulting services to third-party reinsurers; and contract underwriting services, as well as credit risk management products. In addition, the company offers title insurance and settlement services; and title insurance underwriting services. It serves the originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions, and other lenders. Essent Group Ltd. was founded in 2008 and is headquartered in Hamilton, Bermuda.
Commentary & Analysis
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Financial Summary
| Share Statistics | ESNT | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $6,159.2 | $2,326.5 | 70% |
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| Shares Out (Mil) | 91.4 | 72.9 | 60% |
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| Institutional Ownership | 96.5% | 86.4% | 70% |
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| Float (Mil) | 86.6 | 62.0 | 58% |
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| Beta | na | 0.87 | na |
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| Avg Daily Volume (000s) | 627 | 537 | 61% |
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| Price Change (52-week) |
9.7% | 78.6% | 53% |
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| Growth | ESNT | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 5.7% | 10.5% | 39% |
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| Net Income (5yr) | 10.8% | 8.2% | 56% |
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| EPS (5yr) | 12.2% | 11.8% | 51 |
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| Dividends (5yr) | 14.1% | 0.0% | 84% |
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| Cash Flow (5yr) | (18.1%) | (15.0%) | 38% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 6 | 6 | 6 | |
| Current EPS | $1.861 | $7.559 | $7.855 | |
| Month Ago EPS | $1.821 | $7.223 | $7.674 | |
| # Rev Up | 0 | 1 | 0 | |
| # Rev Down | 1 | 1 | 1 | |
| Three Months Ago EPS | $1.823 | $7.264 | $7.747 | |
| Year/Year Chg | (10.5%) | 9.6% | 19.9% | |
| Financials | ESNT | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $1,323 | $1,233 | 54% |
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| Net Income (TTM) (Mil) | $681 | $86 | 82% |
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| EPS (TTM) | $7.210 | $0.700 | 91% |
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| Operating Cash Flow (TTM) (Mil) | $834 | $166 | 78% |
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| Net Cash Flow (TTM) (Mil) | ($18) | $5 | 27% |
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| Long-Term Debt (Q1) (Mil) | $496 | $730 | 58% |
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| Enterprise Value (Q1) (Mil) | na | $3,817 | na |
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| Valuation | ESNT | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.09 | 1.38 | 25% |
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| P/E | 9.6 | 18.2 | 15% |
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| Dividend Yield | 2.0% | 0.0% | 76% |
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| PEG (5yr hist) | 0.8 | 0.9 | 37% |
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| Ratios | ESNT | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 76.0% | 61.5% | 86% |
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| Net Margin | 51.5% | 7.3% | 97% |
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| ROA | 9.2% | 1.0% | 86% |
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| ROE | 12.0% | 10.7% | 63% |
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| Liabilities to Assets | 25.4% | 74.8% | 17% |
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| F-Score | 5 | 5 | 50% |
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Passing Stock Screens
As of 8/20/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Graham--Defensive Investor (Utility) Screen
Factors: Yield, Value, Quality, Industry/Sector
Graham's approach leads to three separate screens that focus on the concept of intrinsic value, justified by a firm's financial strength.
| Performance Since Inception: | 6.9% |
| +/- S&P 500: | -0.6 |
