ESSENT GROUP LTD. | NYSE: ESNT © 2024 Essent Group Ltd. All rights reserved. | essentgroup.com | 1 ESSENT GROUP LTD. INVESTOR PRESENTATION 3Q24 NYSE: ESNT November 1, 2024 Disclaimer This presentation may include "forward-looking statements" which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "be ...

分组1 - Essent Group reported quarterly earnings of $1.65 per share, missing the Zacks Consensus Estimate of $1.70 per share, representing an earnings surprise of -2.94% [1] - The company posted revenues of $316.58 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.09%, compared to year-ago revenues of $296.11 million [2] - Over the last four quarters, Essent Group has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has added about 13.8% since the beginning of the year, underperforming the S&P 500's gain of 19.6% [3] - The current consensus EPS estimate for the coming quarter is $1.74 on revenues of $317.51 million, and for the current fiscal year, it is $7.02 on revenues of $1.24 billion [7] - The Zacks Industry Rank for Financial - Mortgage & Related Services is currently in the top 7% of over 250 Zacks industries, indicating strong industry performance [8]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe ar ...

Essent Group (ESNT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a cha ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

Company Overview - Essent Group Ltd. is a Bermuda-based holding company focused on housing finance, specializing in private mortgage insurance, reinsurance, and related services [3] - The company has effectively transferred significant credit risk to investors, offloading $1 billion through nine Radnor Re Insurance-Linked Notes and $288 million via five Excess of Loss deals [3][4] - As of June 30, 2024, 94% of their insurance in force is covered by reinsurance, indicating strong risk management practices [3] Financial Performance - For Q2 2024, Essent reported GAAP earnings per share (EPS) of $1.91, beating estimates by $0.22, and revenue of $312.94 million, exceeding projections by $4.61 million [2][8] - Net income increased to $204 million, up 18.6% from $172 million in the same quarter last year [8][9] - The company’s US mortgage insurance portfolio rose 2% to $241 billion, maintaining a stable premium revenue rate of about 87% [12][16] Market Conditions - The housing market is currently tight, with stagnant sales of existing homes and homeowners reluctant to sell due to low-rate mortgages [4] - There is a direct correlation between mortgage rates and policy persistency, with high rates leading to less refinancing and longer policy durations [4] - Demographic trends indicate an increase in potential first-time homebuyers in the US over the next five years, supporting demand for housing and mortgage insurance products [4] Investment Highlights - Essent's stock price has shown a commendable annual return of 9.81% from January 2015 to August 2024, although it lags behind the S&P 500's 10.91% [5] - The company has increased its dividend significantly, with an average annual increase of 40.46% over the past four years, and a compound growth rate of 35.12% [6] - The blended P/E ratio of 9.25x suggests that the stock is undervalued compared to its normal P/E of 10.39x, presenting a potential opportunity for value investors [19] Risk Management - Essent has implemented various reinsurance programs to manage risk effectively, transferring $8.4 billion of risk to top-rated reinsurers [3] - The company maintains a strong credit quality with a weighted average FICO score of 746 and a default rate of 1.71% [14][16] - Management expresses confidence in navigating economic challenges, emphasizing preparedness for significant stress scenarios [13] Future Outlook - The mortgage insurance market is projected to grow from $1.5 trillion to potentially $2 trillion, driven by demographics and immigration, offering significant upside for Essent [21] - Anticipated lower mortgage rates could enhance affordability and stimulate demand, potentially boosting new insurance written (NIW) and improving overall results [21]

ESSENT GROUP LTD. | NYSE: ESNT © 2024 Essent Group Ltd. All rights reserved. | essentgroup.com | 1 ESSENT GROUP LTD. INVESTOR PRESENTATION 2Q24 NYSE: ESNT August 2, 2024 Disclaimer This presentation may include "forward-looking statements" which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "beli ...

Core Viewpoint - Essent Group (ESNT) reported quarterly earnings of $1.91 per share, exceeding the Zacks Consensus Estimate of $1.68 per share, and showing an increase from $1.61 per share a year ago, representing an earnings surprise of 13.69% [1] Financial Performance - The company posted revenues of $312.94 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.79%, and up from $260.13 million year-over-year [2] - Over the last four quarters, Essent Group has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance - Essent Group shares have increased approximately 16.1% since the beginning of the year, outperforming the S&P 500's gain of 14.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $314.42 million, and for the current fiscal year, it is $6.69 on revenues of $1.24 billion [7] - The estimate revisions trend for Essent Group is mixed, which may change following the recent earnings report [6] Industry Context - The Financial - Mortgage & Related Services industry is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8]

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. The stock might move higher if these key numbers top expectations in the upcoming earnings report, whi ...

Core Viewpoint - The Zacks rating system is effective for individual investors as it focuses on changes in earnings estimates, which are strongly correlated with near-term stock price movements [1][2][3]. Earnings Estimate Revisions - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, significantly influence stock price movements [2][3]. - The Zacks rating system utilizes earnings estimate revisions to provide a reliable stock rating, helping investors make informed decisions [3][6]. Essent Group Analysis - Essent Group has been upgraded to a Zacks Rank 2 (Buy), indicating it is in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for stock price increase [10][11]. - The Zacks Consensus Estimate for Essent Group has increased by 2.7% over the past three months, reflecting a positive outlook for the company's earnings [15]. - The upgrade signifies an improvement in Essent Group's underlying business, which is expected to drive buying pressure and increase its stock price [12][13].