IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
ESNT Stock Analysis: Top Mid-Cap Hold (Score 60.6/100) | Blank Capital Research | Blank Capital Research
ESNT
Essent Group Ltd.
$60.51
-1.02 (-1.66%)
Score60.6
Data as of Apr 6, 2026
ESNT
Essent Group Ltd.
FinancialsInsurance
$60.51
-1.02 (-1.66%)
Open $61.37High $61.67Low $60.34Prev $61.53Vol ---52W: $51.61 – $67.09
Hold
Composite score
01234567890123456789.0123456789
Global rank
#200
Percentile
Top 4%
Business quality
80th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 79.9GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.3%
Sector: 8.5%
Dividend Analysis audit
GROWTH
1.90%
Trailing Yield
$1.90
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
15%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, Essent Group Ltd. (ESNT) receives a "Hold" rating with a composite score of 60.6/100, ranked #200 out of 4446 stocks. Key factor scores: Quality 80/100, Value 77/100, Momentum 40/100. This is quantitative analysis only — not investment advice.
Essent Group Ltd. (ESNT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Essent Group Ltd. Do?
Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services. It serves the originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions, and other lenders. The company was founded in 2008 and is based in Hamilton, Bermuda. Essent Group Ltd. (ESNT) is classified as a mid-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Mark A. Casale and employs approximately 350 people. With a market capitalization of $5.5B, ESNT is one of the notable companies in the Financials sector.
Essent Group Ltd. (ESNT) Stock Rating — Hold (April 2026)
As of April 2026, Essent Group Ltd. receives a Hold rating with a composite score of 60.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ESNT ranks #200 out of 4,446 stocks in our coverage universe. Within the Financials sector, Essent Group Ltd. ranks #74 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ESNT Stock Price and 52-Week Range
Essent Group Ltd. (ESNT) currently trades at $60.51. The stock lost $1.02 (1.7%) in the most recent trading session. The 52-week high for ESNT is $67.09, which means the stock is currently trading -9.8% from its annual peak. The 52-week low is $51.61, putting the stock 17.2% above its annual trough. Recent trading volume was 482K shares, suggesting relatively thin trading activity.
Is ESNT Overvalued or Undervalued? — Valuation Analysis
Essent Group Ltd. (ESNT) carries a value factor score of 77/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.08x, compared to the Financials sector average of 14.88x — a discount of 46%. The price-to-book ratio stands at 1.00x, versus the sector average of 1.22x. The price-to-sales ratio is 4.54x, compared to 0.90x for the average Financials stock. On an enterprise value basis, ESNT trades at 6.80x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Essent Group Ltd. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Essent Group Ltd. Profitability — ROE, Margins, and Quality Score
Essent Group Ltd. (ESNT) earns a quality factor score of 80/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 12.3%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 9.6% versus the sector average of 1.2%.
On a margin basis, Essent Group Ltd. reports gross margins of 0.0%. The operating margin is 66.8% (sector: 21.8%). Net profit margin stands at 56.2%, versus 17.7% for the average Financials stock. Revenue growth is running at -0.4% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
ESNT Debt, Balance Sheet, and Financial Health
Essent Group Ltd. has a debt-to-equity ratio of 29.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.42x, indicating strong short-term liquidity. Total debt on the balance sheet is $495M. Cash and equivalents stand at $91M.
ESNT has a beta of 0.51, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Essent Group Ltd. is 91/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Essent Group Ltd. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Essent Group Ltd. reported revenue of $1.27B and earnings per share (EPS) of $6.97. Net income for the quarter was $711M. Gross margin was 0.0%. Operating income came in at $845M.
In FY 2025, Essent Group Ltd. reported revenue of $1.26B and earnings per share (EPS) of $6.97. Net income for the quarter was $690M. Revenue grew 4.4% year-over-year compared to FY 2024. Operating income came in at $822M.
In Q3 2025, Essent Group Ltd. reported revenue of $312M and earnings per share (EPS) of $1.69. Net income for the quarter was $164M. Revenue grew -1.5% year-over-year compared to Q3 2024. Operating income came in at $199M.
In Q2 2025, Essent Group Ltd. reported revenue of $319M and earnings per share (EPS) of $1.95. Net income for the quarter was $195M. Revenue grew 2.0% year-over-year compared to Q2 2024. Operating income came in at $231M.
Over the past 8 quarters, Essent Group Ltd. has demonstrated a growth trajectory, with revenue expanding from $313M to $1.27B. Investors analyzing ESNT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ESNT Dividend Yield and Income Analysis
Essent Group Ltd. (ESNT) currently pays a dividend yield of 1.9%. At this yield, a $10,000 investment in ESNT stock would generate approximately $$190.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning ESNT yields less than the typical sector peer. With a net margin of 56.2%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
ESNT Momentum and Technical Analysis Profile
Essent Group Ltd. (ESNT) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 27/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ESNT vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing ESNT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ESNT vs S&P 500 (SPY) comparison to assess how Essent Group Ltd. stacks up against the broader market across all factor dimensions.
ESNT Next Earnings Date
No upcoming earnings date has been announced for Essent Group Ltd. (ESNT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ESNT? — Investment Thesis Summary
Essent Group Ltd. presents a balanced picture with arguments on both sides. The quality score of 80/100 indicates above-average profitability and business fundamentals. The value score of 77/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 91/100) reduces downside risk.
In summary, Essent Group Ltd. (ESNT) earns a Hold rating with a composite score of 60.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ESNT stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
Essent Group Ltd. (ESNT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Essent Group Ltd. receives a Hold rating, driven by a balanced assessment of its strong profitability and value metrics offset by weaker momentum and investment scores. While the company exhibits impressive financial health and operates in a relatively stable sector, concerns regarding revenue growth and capital allocation warrant a cautious approach. The primary takeaway is that Essent presents a compelling value proposition at its current valuation, but potential headwinds in the housing market and strategic deployment of capital could impact future performance.
Essent's dominant position in the private mortgage insurance (PMI) market, coupled with its efficient operations, supports its high profitability. However, the cyclical nature of the housing market and the potential for increased competition pose risks to its long-term growth prospects. Investors should closely monitor the company's ability to maintain its market share, manage its risk exposure, and effectively deploy its capital to generate sustainable returns.
Business Strategy & Overview
Essent Group Ltd. operates primarily in the private mortgage insurance (PMI) sector, providing insurance to lenders against losses resulting from borrower defaults on residential mortgage loans. This allows lenders to offer mortgages to borrowers with lower down payments, facilitating homeownership. Essent's core business revolves around underwriting and pricing mortgage insurance policies, managing risk exposure, and efficiently processing claims. The company generates revenue primarily from premiums paid by borrowers or lenders for mortgage insurance coverage.
Essent's strategic positioning within the PMI market focuses on maintaining a strong capital base, adhering to prudent underwriting standards, and leveraging technology to enhance operational efficiency. The company aims to achieve sustainable growth by expanding its market share, diversifying its product offerings, and optimizing its risk management practices. Essent also focuses on building strong relationships with its lender clients, providing them with tailored solutions and exceptional service.
The PMI industry is characterized by a relatively concentrated competitive landscape, with a few major players dominating the market. Essent competes with other PMI providers based on factors such as pricing, coverage terms, underwriting standards, and customer service. The company's ability to differentiate itself through superior risk management, efficient operations, and strong client relationships is crucial for maintaining its competitive advantage.
Essent's business model is inherently linked to the health of the housing market and the overall economy. Factors such as interest rates, unemployment levels, and home prices can significantly impact the demand for mortgage insurance and the company's financial performance. Essent's ability to navigate these macroeconomic factors and adapt its strategies accordingly is essential for long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.4%
Sector: 9.4%
-104% VS SCTR
Economic Moat Analysis
Essent Group possesses a Narrow economic moat, primarily derived from efficient scale and intangible assets. The PMI industry, while not a natural monopoly, exhibits characteristics of efficient scale due to the significant capital requirements and regulatory hurdles associated with entering and competing effectively. Existing players like Essent benefit from established infrastructure, risk management expertise, and relationships with lenders, making it challenging for new entrants to gain significant market share.
The intangible assets contributing to Essent's moat include its brand reputation and underwriting expertise. A strong reputation for financial stability and claims-paying ability is crucial in the PMI industry, as lenders rely on insurers to protect them against losses. Essent has built a solid reputation over time, which enhances its credibility and attracts business. Furthermore, the company's underwriting expertise, honed through years of experience and data analysis, allows it to accurately assess risk and price its policies competitively.
However, the moat is not considered Wide due to the potential for disruption from alternative risk transfer mechanisms and the cyclical nature of the housing market. While PMI provides a valuable service, lenders may explore other ways to mitigate mortgage credit risk, such as government-sponsored enterprises (GSEs) or alternative insurance products. Additionally, downturns in the housing market can significantly impact the demand for PMI and erode the profitability of existing policies.
The strength of Essent's moat is also influenced by regulatory factors. Changes in government regulations or GSE policies could alter the competitive landscape and impact the company's market share. For example, changes to the loan-to-value (LTV) requirements for mortgages could affect the demand for PMI. Therefore, Essent's ability to adapt to regulatory changes and maintain its competitive position is crucial for preserving its moat.
Financial Health & Profitability
Essent Group demonstrates strong financial health, characterized by high profitability, solid margins, and a conservative balance sheet. The company's net margin of 56.2% and operating margin of 66.8% significantly exceed the sector averages of 17.8% and 22.0%, respectively, indicating efficient operations and effective cost management. This superior profitability is a key strength of the company.
Essent's return on equity (ROE) of 12.4% also surpasses the sector average of 8.5%, reflecting its ability to generate attractive returns on shareholders' equity. While the company's revenue growth of -0.4% is slightly negative compared to the sector's 9.3%, this is largely attributable to the cyclical nature of the housing market and the timing of premium recognition. The quarterly financial history shows revenue fluctuating between $256.25M and $319.14M, indicating some volatility but overall stability.
The company's balance sheet is conservatively managed, with a debt-to-equity (D/E) ratio of 29.00, significantly lower than the sector average of 115.00. This low leverage provides Essent with financial flexibility to weather economic downturns and pursue strategic opportunities. The current ratio of 4.42 indicates strong liquidity, ensuring the company can meet its short-term obligations.
Free cash flow generation has been inconsistent, with a TTM FCF of $64.93M and FY2024 FCF of $156.26M. The lack of FCF data for other periods makes it difficult to assess the long-term trend. However, the company's strong profitability suggests that it has the potential to generate significant cash flow in the future. Investors should monitor the company's ability to improve its FCF generation over time.
Valuation Assessment
Essent Group's valuation appears attractive based on several key metrics. The company's P/E ratio of 8.2x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 1.6x is substantially below the sector average of 3.5x, further supporting the notion that the company is undervalued.
However, it's important to consider the cyclical nature of the PMI industry when assessing Essent's valuation. The company's earnings are highly sensitive to changes in the housing market, and a potential downturn could negatively impact its profitability. Therefore, a conservative approach to valuation is warranted.
The company's free cash flow yield, based on the TTM FCF of $64.93M and a market cap of $5.40B, is relatively low. This suggests that the company is not generating a significant amount of cash flow relative to its market capitalization. However, as mentioned earlier, the lack of consistent FCF data makes it difficult to draw definitive conclusions.
Overall, Essent's valuation appears reasonable given its strong profitability, conservative balance sheet, and dominant position in the PMI market. However, the cyclical nature of the industry and the potential for increased competition warrant a cautious approach. Investors should closely monitor the company's financial performance and the overall health of the housing market when making investment decisions.
Risk & Uncertainty
Essent Group faces several specific risks that could impact its business and financial performance. One of the most significant risks is the cyclical nature of the housing market. Downturns in the housing market can lead to increased mortgage defaults, higher claims payments, and reduced demand for mortgage insurance, negatively impacting Essent's profitability.
Another risk is increased competition in the PMI industry. While the market is currently concentrated, new entrants or aggressive pricing strategies from existing players could erode Essent's market share and profitability. The company must continuously innovate and differentiate itself to maintain its competitive advantage.
Regulatory changes also pose a risk to Essent's business. Changes in government regulations or GSE policies could alter the competitive landscape and impact the demand for PMI. For example, changes to the LTV requirements for mortgages or the role of GSEs in the mortgage market could significantly affect Essent's business.
Furthermore, Essent faces credit risk related to its reinsurance counterparties. If a reinsurance counterparty were to default on its obligations, Essent could incur significant losses. The company must carefully manage its reinsurance relationships and monitor the financial health of its counterparties.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEssent's strong profitability and efficient operations, reflected in its high net and operating margins, position it for continued success in the PMI market.
BULL VIEWThe company's conservative balance sheet and low debt-to-equity ratio provide financial flexibility to weather economic downturns and pursue strategic opportunities.
BULL VIEWEssent's attractive valuation, with a P/E ratio significantly below the sector average, offers investors an opportunity to purchase a high-quality company at a reasonable price.
The Bear Case
BEAR VIEWThe cyclical nature of the housing market poses a significant risk to Essent's earnings, as downturns can lead to increased mortgage defaults and reduced demand for mortgage insurance.
BEAR VIEWIncreased competition in the PMI industry could erode Essent's market share and profitability, particularly if new entrants or existing players engage in aggressive pricing strategies.
BEAR VIEWEssent's relatively low free cash flow yield raises concerns about its ability to generate sustainable cash flow and return capital to shareholders.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ESNT and 4,400+ other equities.
Essent Group Ltd. exhibits a 112% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
9.6%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
66.8%
Sector: 21.8%
Net Margin
Bottom-line profitability
56.2%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-23%
Income Projection audit
A $10,000 investment would generate approximately $190 annually in dividends at the current trailing rate.
