Essent Group Ltd. Common Shares (ESNT)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Essent as a specialty insurer, not a bank. It sells private mortgage insurance and reinsurance, plus title insurance, to U.S. mortgage lenders and investors. At the close on 2026-10-13, the shares were $62.04, with FairStock’s P/E at 8.65 and P/B at 0.98. That is not demanding if book value is sound. The business earns a FairStock ROE of 12.01% with a debt-to-equity ratio of only 0.09, and its Piotroski F-Score is 7/9. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $362.7M and net income was $189.7M, or $2.08 per diluted share. A year earlier, in fiscal Q2 2025, revenue was $319.1M and net income was $195.3M, or $1.93 per diluted share, so revenue rose but net income slipped. For FY2025, net income was $690.0M versus $729.4M in FY2024, with diluted EPS of $6.90 versus $6.85. The Lynch category is STALWART, based on 10.8% annual profit growth and 5.7% revenue growth over five years. The provided figures do not let me verify a wide moat; mortgage insurance is cyclical and credit losses can overwhelm underwriting discipline. The data lacks CET1, net interest margin and a combined ratio, so I cannot directly judge reserve adequacy or capital. At about book value and under nine times earnings, the price looks modest, but the declining profit trend and unquantified credit risk keep me cautious.

In plain English: Essent sells mortgage insurance and related services to lenders and investors in the United States. The business is profitable, carries little debt, pays a dividend, and has grown over the long term, though recent profit has dipped. Compared with its profits and net worth, the stock price looks inexpensive, but results depend heavily on mortgage defaults staying low.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer