74.86 USD (+20.9%)
7 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Essent Group Ltd. is a private mortgage insurer headquartered in Bermuda that provides private mortgage insurance (PMI) to lenders in the United States, protecting them against borrower default.
Key points
from its scores- ✓High-quality business9.8
- ✓Attractive valuation7.6
- ✓Good share-price trend7.6
- !Modest dividend5.7
AI analysis
bottom line, main risk, context and newsThe combination of high quality, reasonable valuation, and sustained growth makes it an attractive defensive position within the financial sector.
Essent Group shows solid financial health (ROE 12.01%, ROA 7.20%) and exceptional quality (operating margin 65.75%, net margin 51.45%), with an attractive valuation (P/E 8.63) and revenue growth of 13.60%. The mortgage insurance business is not exposed to current macro factors, so its profile remains stable.
The main risk is dependence on the US mortgage cycle and GSE regulation (Fannie Mae and Freddie Mac), which could change the mortgage insurance market conditions and affect demand for its policies.
Context and risks
Essent Group is domiciled in Bermuda, a jurisdiction with moderate governance risk. As a mortgage insurer, its business model is exposed to US regulation (GSEs and FHFA), which can change the rules of the sector. However, there are no recent news or specific regulatory events that justify a larger adjustment.
Is Essent Group stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 42% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 8.6 | 13.7 | −37% |
| EV / EBITDA | 6.2 | 10.1 | −38% |
| Price / book | 1.0 | 1.9 | −47% |
| Price / sales | 4.2 | 3.5 | +22% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.6 out of 10 (median for Financial Services: 5.2).
Average analyst target: 74.86 USD, +20.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.6 (sector 5.5), Growth 6.6 (sector 6.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 8.6
- Forward P/E
- 7.8
- EV / EBITDA
- 6.2
- Price / book
- 1.0
- Price / sales
- 4.2
- PEG
- 1.01
- Market cap
- 5.6B USD
- Enterprise value
- 5.4B USD
Profitability
- ROE
- 12.0%
- ROA
- 7.2%
- ROIC (approx.)
- 14.1%
- Gross margin
- 76.0%
- Operating margin
- 65.8%
- Net margin
- 51.5%
- Free cash flow
- 690.2M USD
- FCF yield
- 12.4%
- Cash conversion
- 80%
Solvency
- Total debt
- 496.0M USD
- Net debt
- −202.2M USD
- Cash
- 698.2M USD
- EBITDA
- 858.4M USD
- Net debt / EBITDA
- −0.24
- Debt / equity
- 8.76
- Current ratio
- 1.79
- Quick ratio
- 1.10
Growth
- Revenue growth
- +13.6%
- Earnings growth
- +7.8%
- EPS (TTM)
- 7.17 USD
- EPS (forward)
- 7.89 USD
Dividend
- Dividend yield
- 2.3%
- Payout
- 18.4%
Risk and market
- Beta
- 0.76
- Analyst consensus
- Buy (7)
- Target price
- 74.86 USD
- 52-week range
- 55.34 – 70.37
Recent news
All ESNT news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Essent Group
Is Essent Group stock cheap or expensive?
On P/E and Price / book, it trades 42% below the Financial Services median on average. Valuation score: 7.6 out of 10 (median for Financial Services: 5.2). Average analyst target: 74.86 USD, +20.9% versus the price. This is not investment advice.
What score does Essent Group get on MeridIAn Screener?
It scores 7.5 out of 10, rank 48 of 2,130 (better than 97% of the companies analysed). Its strongest category is Quality / Moat (9.8) and its weakest, Dividend (5.7). Analysis of 08/10/2026.
What is Essent Group's P/E ratio?
Its P/E is 8.6: the share price equals 8.6 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 7.8.
How much is Essent Group worth on the stock market?
Its market capitalisation is 5.6B USD.
Does Essent Group pay a dividend?
Yes: its dividend yield is 2.26% and it pays out 18% of its earnings.
How has Essent Group stock performed over the last year?
It has risen 6.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 55.34 and 70.37 USD. Past performance does not guarantee future results.
What do analysts think of Essent Group?
7 analysts cover it; their average recommendation is “Buy” and their average target is 74.86 USD (+20.9% versus the price). It is an estimate, not market data.