Essent Group Ltd. (ESNT) AI Stock Analysis

Essent Group Ltd. operates in the mortgage insurance and reinsurance sector, specializing in private mortgage insurance and reinsurance for residential properties across the United States. Its comprehensive product line includes primary, pool, and master policies that help mitigate credit risk for residential mortgage lenders and investors. The company also provides supporting services such as information technology maintenance and development, customer support, underwriting consulting, and contract underwriting services. Founded in 2008 and based in Hamilton, Bermuda, Essent Group primarily serves mortgage loan originators, including regulated depository institutions, mortgage banks, credit unions, and other residential mortgage lenders.

Between FY2020 and FY2025, Essent Group delivered a 5-year revenue CAGR of 5.7%. Annual revenue rose from $1.03B in FY2021 to $1.27B in FY2024 before decreasing 0.5% to $1.26B in FY2025. Net income was $690.0M in FY2025, producing EPS of $6.89 and a net margin of 54.7%. Operating margin reached 65.2% in FY2025 compared to 80.0% in FY2021. For the latest quarter ended June 30, 2026, quarterly revenue increased 13.6% year-over-year, while quarterly earnings grew 7.8%. Over the trailing twelve months, revenue reached $1.32B with an operating margin of 65.8% and diluted EPS of $7.17.

As of June 30, 2026, Essent Group held $6.11B in cash and short-term investments against $496.0M in total debt, resulting in net cash of $5.62B. Shareholders' equity was $5.66B, with a debt-to-equity ratio of 0.09 and a current ratio of 0.49. In FY2025, operating cash flow reached $856.1M and free cash flow was $848.7M, while capital expenditures totaled $7.4M. Capital allocation in FY2025 included $587.7M in share buybacks and $122.1M in dividends paid, contributing to a 5-year share count reduction of 16.9%.

At a last close of $64.70 on October 16, 2026, Essent Group traded at a trailing P/E of 9.0x and a forward P/E of 8.2x, below the median of its US-listed Financial Services peers of 12.1x trailing and 10.8x forward. Its price-to-sales ratio of 4.4x sits above the peer median of 3.2x, while its PEG ratio is 0.84 and price-to-book ratio is 1.0x. Over the past year, the stock appreciated 12.5%, trailing the S&P 500 return of 16.8%. Over five years, the stock generated a return of 46.3% compared to 83.0% for the index.

Essent Group pays a quarterly dividend with a forward annual payout of $1.40, resulting in a dividend yield of 2.16% and a payout ratio of 19.0%. The company has paid dividends for 8 consecutive years and maintains an annualized 5-year dividend growth rate of 14.1%. Its last ex-dividend date was August 31, 2026.

Wall Street analysts cover Essent Group with 2 Strong Buy, 1 Buy, and 5 Hold ratings. The mean price target is $74.00, representing 14.4% upside compared to the last close of $64.70. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.36B and EPS of $7.59. For the next fiscal year, 7 analysts project revenue of $1.42B and EPS of $7.92. Essent Group has beaten EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 6, 2026.

This page is an AI-written research summary of Essent Group Ltd. (ESNT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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