ESNT Stock Analysis — Essent Group
Sector: Financials
AI Verdict
Essent trades at 8.3x next year's earnings with just 3.5% growth expected—cheap on the surface, but the high PEG warns you're paying a premium the growth doesn't yet support, and the moat is only as strong as housing credit quality.
Competitive Moat
Essent Group operates as a private mortgage insurer, benefiting from regulatory barriers and the high capital requirements that limit new entrants. Its risk analytics and underwriting discipline help it avoid adverse selection in a cyclical industry.
Summary
Essent trades at just 8.3x forward earnings, making it one of the cheapest names in financials with positive EPS growth expected.
Where It Stands
With a forward P/E of 8.3x versus the sector median of 14x, a 1.4% revenue growth rate, and a trailing PEG of 2.42, ESNT is cheap on earnings but expensive for its modest growth.
Key Metrics
- Trailing P/E: 8.6x
- Forward P/E: 8.3x
- PEG Ratio: 2.42
- Earnings Growth: +0.0%
- Revenue Growth: +0.0%
- Dividend Yield: 0.02%
- 52-Week High: $67.09
- 52-Week Low: $55.22
Analyst Consensus
7 Buy · 6 Hold · 0 Sell (13 analysts)
Bull Case
Forward EPS is expected to rise 3.5% while the stock trades at only 8.3x next year's earnings, offering a low bar for even modest growth to drive returns.
Bear Case
With a PEG of 2.42, investors are paying over twice the growth rate, so any P/E compression toward the sector median could cut the stock price by 30–40%.
Catalyst to Watch
Watch for changes in housing market conditions or regulatory shifts, as either could materially affect default rates and the sustainability of current earnings multiples.