Essent Story

ESNT -- USA Stock

USD 42.31 1.07 2.59%

Macroaxis Story

Essent Interest Coverage is comparatively stable at the moment as compared to the past year. Essent reported Interest Coverage of 5.32 in 2020. Long Term Debt to Equity is likely to gain to 0.63 in 2021, whereas Enterprise Value is likely to drop slightly above 5.1 B in 2021. The fundamental rationale behind this short perspective is to break down our forecasting of Essent for private investors. We will try to forecast Essent outlook for March.

Published over a week ago

View all stories for Essent | View All Stories

Is there a reason to exit Essent (NYSE:ESNT) and drop Encore Capital?

Essent is UNDERVALUED at 47.47 per share with modest projections ahead. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Essent has an asset utilization ratio of 63.76 percent. This implies that the company is making $0.64 for each dollar of assets. An increasing asset utilization means that Essent Group is more efficient with each dollar of assets it utilizes for everyday operations.

There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Essent Group. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Essent

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Essent's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Essent in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as Essent. Your research has to be compared to or analyzed against Essent's peers to derive any actionable benefits. When done correctly, Essent's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Essent Group.

How important is Essent's Liquidity

Essent financial leverage refers to using borrowed capital as a funding source to finance Essent Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Essent 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 Essent's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Essent, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

The small drop in market price for the last few months could raise concerns from private investors as the firm it trading at a share price of 44.10 on 821,074 in volume. The company executives did not add much value to Essent investors in January. However, diversifying your holdings with Essent Group or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.23. The current volatility is consistent with the ongoing market swings in January 2021 as well as with Essent unsystematic, company-specific events.

Returns Breakdown

	Return on Investment	8.44
	Return on Assets	0.17
	Return on Equity	0.22
	Return Capital	0.21
	Return on Sales	0.96

Will price continue to gain in March 2021?

Newest semi variance is at 3.62. Essent Group has relatively low volatility with skewness of 0.78 and kurtosis of 0.82. However, we advise all investors to independently investigate Essent Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Essent Investment

When is the right time to buy or sell Essent Group? Buying stocks such as Essent isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. All things considered, as of the 19th of February 2021, our research shows that Essent is a rather very steady investment opportunity with a very low probability of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our up-to-date 30 days advice on the firm is Strong Hold.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

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 Achuva Shats do not own shares of Essent Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Essent Story

USD 42.31 1.07 2.59%

Predictive Modules for Essent

How important is Essent's Liquidity

What do experts say?

Breaking it down a bit more

Returns Breakdown

Will price continue to gain in March 2021?

Our Takeaway on Essent Investment

About Contributor

Would you like to provide feedback on the content of this article?

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