Essent Group Stock Current Ratio
| ESNT Stock | USD 54.17 0.02 0.04% |
Essent Group fundamentals help investors to digest information that contributes to Essent's financial success or failures. It also enables traders to predict the movement of Essent Stock. The fundamental analysis module provides a way to measure Essent's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Essent stock.
| Last Reported | Projected for Next Year | ||
| Current Ratio | 6.74 | 11.83 |
Essent | Current Ratio |
Essent Group Company Current Ratio Analysis
Essent's Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Current Essent Current Ratio | 1.88 X |
Most of Essent's fundamental indicators, such as Current Ratio, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Essent Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Essent Current Ratio Driver Correlations
Understanding the fundamental principles of building solid financial models for Essent is extremely important. It helps to project a fair market value of Essent Stock properly, considering its historical fundamentals such as Current Ratio. Since Essent's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Essent's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Essent's interrelated accounts and indicators.
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Essent Current Ratio Historical Pattern
Today, most investors in Essent Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Essent's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current ratio growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Essent current ratio as a starting point in their analysis.
Essent Current Ratio |
| Timeline |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
| Competition |
Essent Price To Sales Ratio
Price To Sales Ratio |
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In accordance with the recently published financial statements, Essent Group has a Current Ratio of 1.88 times. This is 53.58% lower than that of the Thrifts & Mortgage Finance sector and significantly higher than that of the Financials industry. The current ratio for all United States stocks is 12.96% higher than that of the company.
Essent Current Ratio Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Essent's direct or indirect competition against its Current Ratio to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Essent could also be used in its relative valuation, which is a method of valuing Essent by comparing valuation metrics of similar companies.Essent is currently under evaluation in current ratio category among related companies.
Essent Fundamentals
| Return On Equity | 0.15 | ||||
| Return On Asset | 0.0882 | ||||
| Profit Margin | 0.64 % | ||||
| Operating Margin | 0.74 % | ||||
| Current Valuation | 5.18 B | ||||
| Shares Outstanding | 106.75 M | ||||
| Shares Owned By Insiders | 3.17 % | ||||
| Shares Owned By Institutions | 95.77 % | ||||
| Number Of Shares Shorted | 1.04 M | ||||
| Price To Earning | 10.05 X | ||||
| Price To Book | 1.12 X | ||||
| Price To Sales | 5.28 X | ||||
| Revenue | 1.09 B | ||||
| Gross Profit | 1.12 B | ||||
| EBITDA | 4.53 M | ||||
| Net Income | 696.39 M | ||||
| Cash And Equivalents | 433.48 M | ||||
| Cash Per Share | 4.03 X | ||||
| Total Debt | 459.9 M | ||||
| Debt To Equity | 0.1 % | ||||
| Current Ratio | 1.88 X | ||||
| Book Value Per Share | 47.87 X | ||||
| Cash Flow From Operations | 763 M | ||||
| Short Ratio | 1.81 X | ||||
| Earnings Per Share | 6.50 X | ||||
| Price To Earnings To Growth | 0.84 X | ||||
| Target Price | 61.67 | ||||
| Number Of Employees | 536 | ||||
| Beta | 1.03 | ||||
| Market Capitalization | 5.78 B | ||||
| Total Asset | 6.5 B | ||||
| Retained Earnings | 4.08 B | ||||
| Working Capital | 129.5 M | ||||
| Current Asset | 407.2 M | ||||
| Current Liabilities | 277.7 M | ||||
| Annual Yield | 0.02 % | ||||
| Net Asset | 6.5 B | ||||
| Last Dividend Paid | 1.0 |
About Essent Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Essent Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Essent using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Essent Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Essent
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Essent position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Essent will appreciate offsetting losses from the drop in the long position's value.Moving together with Essent Stock
| 0.82 | ACT | Enact Holdings Earnings Call This Week | PairCorr |
Moving against Essent Stock
| 0.5 | JRVR | James River Group Earnings Call This Week | PairCorr |
| 0.41 | PPHI | Positive Physicians | PairCorr |
The ability to find closely correlated positions to Essent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Essent when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Essent - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Essent Group to buy it.
The correlation of Essent is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Essent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essent Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Essent can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Essent Piotroski F Score and Essent Altman Z Score analysis. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Complementary Tools for Essent Stock analysis
When running Essent's price analysis, check to measure Essent's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Essent is operating at the current time. Most of Essent's value examination focuses on studying past and present price action to predict the probability of Essent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Essent's price. Additionally, you may evaluate how the addition of Essent to your portfolios can decrease your overall portfolio volatility.
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Is Essent's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essent. If investors know Essent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.199 | Dividend Share 1 | Earnings Share 6.5 | Revenue Per Share 10.215 | Quarterly Revenue Growth 0.242 |
The market value of Essent Group is measured differently than its book value, which is the value of Essent that is recorded on the company's balance sheet. Investors also form their own opinion of Essent's value that differs from its market value or its book value, called intrinsic value, which is Essent's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essent's market value can be influenced by many factors that don't directly affect Essent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Essent's value and its price as these two are different measures arrived at by different means. Investors typically determine if Essent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essent's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.