Enstar Story

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ESGR -- USA Stock  

USD 161.69  0.19  0.12%

Enstar Group Limited is scheduled to announce its earnings tomorrow. Enstar Group EBITDA Margin is relatively stable at the moment as compared to the past year. Enstar Group reported last year EBITDA Margin of 0.40. As of 08/01/2020, Earnings per Basic Share is likely to grow to 45.32, while Average Equity is likely to drop slightly above 3.7 B. While some baby boomers are getting worried about financial services space, it is reasonable to sum up Enstar Group Limited as an investment alternative.
Published over a month ago
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Is Enstar Group (NASDAQ:ESGR) outlook still optimistic based on the latest debt level?
The company currently holds 1.58 B in liabilities with Debt to Equity (D/E) ratio of 0.34, which is about average as compared to similar companies. On a scale of 0 to 100, Enstar Group holds a performance score of 7. The firm shows a Beta (market volatility) of 1.4837, which means a somewhat significant risk relative to the market. Let's try to break down what Enstar's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Enstar Group will likely underperform. Although it is vital to follow Enstar Group Limited historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Enstar Group Limited technical indicators, you can presently evaluate if the expected return of 0.33% will be sustainable into the future. Please utilizes Enstar Group Limited value at risk, as well as the relationship between the skewness and day median price to make a quick decision on whether Enstar Group price patterns will revert.
Enstar Group financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Enstar Group, including all of Enstar Group's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Enstar Group assets, the company is considered highly leveraged. Understanding the composition and structure of overall Enstar Group debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Enstar Total Liabilities

Enstar Group Limited liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Enstar Group Limited has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Enstar Group balance sheet include debt obligations and money owed to different Enstar Group vendors, workers, and loan providers. Below is the chart of Enstar short long-term liabilities accounts currently reported on its balance sheet.
You can use Enstar Group Limited financial leverage analysis tool to get a better grip on understanding its financial position

How important is Enstar Group's Liquidity

Enstar Group financial leverage refers to using borrowed capital as a funding source to finance Enstar Group Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Enstar Group financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Enstar Group's total debt and its cash.

Breaking down Enstar Group Indicators

Enstar Group Limited reported the previous year's revenue of 1.42 B. Net Income was 26.6 M with profit before overhead, payroll, taxes, and interest of 1.39 B.

Asset Breakdown

Total Assets16.22 Billion
Current Assets95.46 Million
Assets Non Current130 Million
Goodwill189.09 Million
Tax Assets184.48 Million

Will Enstar slump impact its fundamentals?

Latest Information Ratio is up to 0.03. Price may slump again. Enstar Group Limited currently demonstrates below-verage downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.05. However, we do advice investors to further question Enstar Group Limited expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Enstar Group Limited

While some other firms in the insurance?diversified industry are either recovering or due for a correction, Enstar may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Enstar nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Enstar Group.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Enstar Group Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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