📊 ESNT Key Takeaways
Is Essent Group Ltd. (ESNT) a Good Investment?
Essent Group demonstrates exceptional profitability (51% net margin) and fortress-like financial strength (0.07x leverage) with strong cash generation, but faces headwinds from declining net income (-5.4% YoY) despite modest revenue growth, suggesting operational pressures that warrant caution despite structural quality.
Essent Group shows exceptional core profitability, with a 65.2% operating margin, 54.7% net margin, and free cash flow of $848.69M on $1.26B of revenue. The balance sheet is conservative with low leverage and strong interest coverage, which supports resilience, but the modest revenue growth and decline in net income suggest the business is fundamentally strong rather than accelerating.
Essent Group Ltd. Key Strengths (ESNT)
- Exceptional net margin of 51.1% and operating margin of 61.5% demonstrates dominant competitive positioning in surety insurance
- Fortress balance sheet with debt-to-equity of 0.07x and interest coverage of 25.4x provides significant financial flexibility
- Outstanding free cash flow generation of $191.2M (56.9% FCF margin) with minimal reinvestment needs typical of mature insurance businesses
- Very high profitability with 65.2% operating margin and 54.7% net margin
- Excellent cash generation, with $856.05M operating cash flow and $848.69M free cash flow
- Strong financial health driven by low debt-to-equity of 0.07x and interest coverage of 33.5x
ESNT Stock Risks: Essent Group Ltd. Investment Risks
- Net income declined 5.4% YoY despite flat revenue growth of 1.5%, indicating deteriorating underwriting performance or rising operational expenses
- Anemic top-line growth of 1.5% YoY suggests limited organic expansion opportunities and market maturity constraints
- Stagnant earnings momentum with EPS growth of only 0.7% YoY despite high profitability indicates shareholder value creation is dependent on buybacks rather than business expansion
- Revenue growth is slow at 1.5% YoY, indicating limited near-term expansion
- Net income declined 5.4% YoY, which may signal pressure on underwriting or investment income
- Insurance fundamentals can weaken if claim trends, housing credit conditions, or reserve assumptions deteriorate
Key Metrics to Watch
- Loss ratio and combined ratio trends to identify cause of net income decline
- Revenue growth acceleration or deceleration in next quarters
- Return on equity improvement (currently 3.0%) as proxy for capital efficiency
- Net income trend and ROE stability
- Written premiums, persistency, and loss ratio trends
Essent Group Ltd. (ESNT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 56.9% 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 Profit Margin, ROE & Profitability Analysis
ESNT vs Finance Sector: How Essent Group Ltd. Compares
How Essent Group Ltd. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Essent Group Ltd. Stock Overvalued? ESNT Valuation Analysis 2026
Based on fundamental analysis, Essent Group Ltd. has mixed fundamental signals 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.
Essent Group Ltd. Balance Sheet: ESNT Debt, Cash & Liquidity
ESNT Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
ESNT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $317.6M | $171.8M | $1.69 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Essent Group Ltd. Dividends, Buybacks & Capital Allocation
ESNT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Essent Group Ltd. (CIK: 0001448893)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 8, 2026 | 4 | xslF345X06/wk-form4_1778287759.xml | View → |
| May 8, 2026 | 4 | xslF345X06/wk-form4_1778287716.xml | View → |
| May 8, 2026 | 4 | xslF345X06/wk-form4_1778287691.xml | View → |
| May 8, 2026 | 4 | xslF345X06/wk-form4_1778287670.xml | View → |
| May 8, 2026 | 4 | xslF345X06/wk-form4_1778287663.xml | View → |
❓ Frequently Asked Questions about ESNT
What is the AI rating for ESNT?
Essent Group Ltd. (ESNT) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESNT's key strengths?
Claude: Exceptional net margin of 51.1% and operating margin of 61.5% demonstrates dominant competitive positioning in surety insurance. Fortress balance sheet with debt-to-equity of 0.07x and interest coverage of 25.4x provides significant financial flexibility. ChatGPT: Very high profitability with 65.2% operating margin and 54.7% net margin. Excellent cash generation, with $856.05M operating cash flow and $848.69M free cash flow.
What are the risks of investing in ESNT?
Claude: Net income declined 5.4% YoY despite flat revenue growth of 1.5%, indicating deteriorating underwriting performance or rising operational expenses. Anemic top-line growth of 1.5% YoY suggests limited organic expansion opportunities and market maturity constraints. ChatGPT: Revenue growth is slow at 1.5% YoY, indicating limited near-term expansion. Net income declined 5.4% YoY, which may signal pressure on underwriting or investment income.
What is ESNT's revenue and growth?
Essent Group Ltd. reported revenue of $336.1M.
Does ESNT pay dividends?
Essent Group Ltd. pays dividends, with $32.6M 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 $1.82.
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 grade reflects both perspectives for balanced insights.
What is ESNT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Essent Group Ltd. has a A grade with 76% 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 3.0% (sector avg: 12%), net margin of 51.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is ESNT's AI grade for 2026?
Our dual AI analysis gives Essent Group Ltd. a combined A grade 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 $192.0M, with capital expenditures of $818.0K. FCF margin is 56.9%.
How does ESNT compare to other Finance stocks?
Vs Finance sector averages: Net margin 51.1% (avg: 25%), ROE 3.0% (avg: 12%), current ratio N/A (avg: 1.2).