Essent Group Ltd. (NYSE:ESNT) reported an EPS of $1.69, beating the Zacks Consensus Estimate.
The company’s revenue reached approximately $317.6 million, surpassing estimates and indicating a year-over-year increase.
Essent Group’s financial health is highlighted by a low debt-to-equity ratio of 0.088 and a current ratio of 1.06.
Essent Group Ltd. (NYSE:ESNT) is a prominent player in the insurance sector, specifically within the property and casualty industry. The company provides private mortgage insurance and reinsurance for mortgage loans. Essent Group competes with other insurance firms, striving to offer competitive rates and services. The company has recently reported its financial results for the first quarter of 2025, showcasing its performance in the market.
On May 9, 2025, Essent Group reported earnings per share (EPS) of $1.69, surpassing the Zacks Consensus Estimate of $1.66. This earnings surprise of 1.81% highlights the company’s ability to exceed market expectations. However, it’s worth noting that this figure represents a slight decrease from the $1.70 EPS reported in the same quarter last year. Despite this, Essent Group has managed to exceed consensus EPS estimates twice over the past four quarters.
In terms of revenue, Essent Group generated approximately $317.6 million for the quarter ending March 2025, surpassing the estimated $315.7 million. This revenue figure marks a 2.03% increase over the Zacks Consensus Estimate and a significant rise from the $298.36 million reported in the same period last year. The company has consistently exceeded consensus revenue estimates in three recent quarters, demonstrating its strong market position.
Essent Group’s financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 8.37, indicating how the market values its earnings. Additionally, the price-to-sales ratio stands at 4.75, reflecting the market’s valuation of its revenue. The enterprise value to sales ratio is 5.03, suggesting how the company’s total value compares to its sales. These metrics highlight Essent Group’s financial health and market standing.
The company’s financial stability is further supported by its low debt-to-equity ratio of 0.088, indicating a conservative approach to leveraging. With a current ratio of 1.06, Essent Group demonstrates its ability to cover short-term liabilities with short-term assets. The enterprise value to operating cash flow ratio of 7.40 shows how its cash flow is valued relative to its enterprise value. Additionally, an earnings yield of 11.94% indicates a strong return on investment for shareholders.
