Essent Net Income vs. Price To Sales

ESNT Stock  USD 56.31  0.55  0.97%   
Based on Essent's profitability indicators, Essent's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Essent's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2011-12-31
Previous Quarter
203.6 M
Current Value
176.2 M
Quarterly Volatility
71.1 M
 
Yuan Drop
 
Covid
At this time, Essent's Days Sales Outstanding is comparatively stable compared to the past year. Operating Cash Flow Sales Ratio is likely to gain to 0.74 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.10 in 2024. At this time, Essent's Operating Income is comparatively stable compared to the past year. Net Income Applicable To Common Shares is likely to gain to about 1 B in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (139.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.590.8205
Way Down
Slightly volatile
For Essent profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Essent to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Essent Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Essent's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Essent Group over time as well as its relative position and ranking within its peers.
  
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Is Commercial & Residential Mortgage Finance space 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
(0.01)
Dividend Share
1.09
Earnings Share
6.9
Revenue Per Share
11.217
Quarterly Revenue Growth
0.085
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.

Essent Group Price To Sales vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Essent's current stock value. Our valuation model uses many indicators to compare Essent value to that of its competitors to determine the firm's financial worth.
Essent Group is rated # 2 in net income category among its peers. It is rated # 3 in price to sales category among its peers . The ratio of Net Income to Price To Sales for Essent Group is about  136,567,697 . At this time, Essent's Net Income is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Essent by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Essent Price To Sales vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Essent

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
696.39 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Essent

P/S

 = 

MV Per Share

Revenue Per Share

 = 
5.10 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Essent Price To Sales Comparison

Essent is currently under evaluation in price to sales category among its peers.

Essent Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Essent, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Essent will eventually generate negative long term returns. The profitability progress is the general direction of Essent's change in net profit over the period of time. It can combine multiple indicators of Essent, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-280.5 M-266.5 M
Operating Income970.2 MB
Income Before Tax823 M423.2 M
Total Other Income Expense Net-147.2 M-139.9 M
Net Income696.4 M352.4 M
Income Tax Expense126.6 M70.8 M
Net Income From Continuing Ops696.4 M455.9 M
Net Income Applicable To Common Shares956.1 MB
Net Interest Income-30.1 M-28.6 M
Interest Income11.7 M9.4 M
Change To Netincome86.4 M58.6 M
Net Income Per Share 6.56  6.88 
Income Quality 1.10  0.71 
Net Income Per E B T 0.85  0.96 

Essent Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Essent. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Essent position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Essent's important profitability drivers and their relationship over time.

Use Essent in pair-trading

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.

Essent Pair Trading

Essent Group Pair Trading Analysis

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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Essent position

In addition to having Essent in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Real Estate Thematic Idea Now

Real Estate
Real Estate Theme
Publicly traded companies that are involved in real estate development, property maintenance and management of real estate investment trusts (REIT) funds. The Real Estate theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Real Estate Theme or any other thematic opportunities.
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Additional 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.