| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 75 | 9.5x | 17.8x | Top tier | |
Growth | 37 | 4.3% | 7.1% | Bottom tier | |
Quality | 71 | — | — | Top tier | |
Safety | 86 | — | — | Top tier | |
Capital Return | 74 | 1.94% | 2.12% | Top tier | |
Momentum | 79 | 3.9% | 2.9% | Top tier | |
Sentiment | 35 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Essent Group Ltd. operates in private mortgage insurance, reinsurance, and title insurance, alongside managing an investment portfolio. The primary earnings driver comes from premiums on its mortgage insurance portfolio, which totaled $249.7 billion of insurance in force as of June 30, 2026, while the company uses a “buy, manage, and distribute” model to manage risk and transfer part of it to reinsurers; 97% of insurance in force was covered by reinsurance protection. The company also generates income from mortgage and property and casualty reinsurance and from its $6.6 billion of investments, while the title insurance business remained a long-term investment that management does not expect to have a material near-term impact on earnings.
In Q2 FY2026, revenue was $362.7 million and net income was $189.7 million, equivalent to a calculated net income margin of approximately 52.3%. Diluted earnings per share were $2.08, and annualized return on average equity was 13.4%. Compared with Q1 FY2026, revenue increased by approximately 7.9% from $336.1 million, net income rose by approximately 10.4% from $171.8 million, and earnings per share increased from $1.82. Earnings per share also exceeded the $1.93 recorded in Q2 FY2025.
Within the Q2 FY2026 results mix, mortgage insurance generated $216 million of earned premiums at an average base premium yield of 40 basis points, while net investment income was $61.6 million, including $19.4 million from other invested assets. In the first half of FY2026, net reinsurance premiums written surged to $249 million from $31 million in the comparable period, and net premiums earned increased to $73 million from $30 million, but the property and casualty business’s contribution to underwriting income was not yet material. Net income in FY2025 was approximately $690 million on revenue of $1.3 billion and earnings per share of $6.90.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $70, a high of $80, and a low of $62; the average is very close to the top of the 52-week range of $70.37, while the bottom of the range is $55.34. The spread of targets between $62 and $80 reflects differing assessments of the impact of continued housing affordability weakness versus strong cash flows and credit quality, and the available data do not provide a valid price-to-earnings ratio for an additional comparison.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Private mortgage insurance is the core business, with $249.7 billion of insurance in force as of June 30, 2026. This business generated $216 million of earned premiums during Q2 FY2026, at an average base premium yield of 40 basis points. Reinsurance and investments add other sources of income, while management does not expect a material near-term impact from the title insurance business.
Revenue was $362.7 million and net income was $189.7 million, compared with revenue of $336.1 million and net income of $171.8 million in Q1 FY2026. Diluted earnings per share were $2.08, compared with $1.82 in the previous quarter and $1.93 in Q2 FY2025. Annualized return on average equity was 13.4%.
The delinquency rate was 2.53% as of June 30, 2026 and remained without material change compared with the end of March 2026. The portfolio’s weighted average credit score was 747, with a weighted average original loan-to-value ratio of 93%. In addition, 97% of insurance in force was covered by reinsurance protection, and management believes accumulated home equity may limit ultimate claims.
Management said on August 7, 2026 that weak housing affordability is pressuring mortgage origination volumes and keeping portfolio growth stalled. Insurance in force increased by only 1.2% year over year, from $246.8 billion as of June 30, 2025 to $249.7 billion as of June 30, 2026. In contrast, higher interest rates support policy persistency at 84% because approximately half of the portfolio carries mortgage rates of no more than 5.5%.
Net reinsurance premiums written increased to $249 million in the first half of FY2026, compared with $31 million in the comparable period of FY2025. Management expects approximately $320 million of written premiums for this business during FY2026, with approximately half earned during the year and a combined ratio in the high-90% range. However, the property and casualty business’s contribution to underwriting income was not material in Q2 FY2026, and segment earnings remained driven primarily by mortgage risk sharing.
The company repurchased approximately 6 million shares for about $350 million from the beginning of FY2026 through July 31, 2026. In Q2 FY2026 alone, it purchased 3.2 million shares for $191 million and paid total cash dividends of $31.6 million. The board also approved a regular dividend of $0.35 per share for Q3 FY2026, supported by operating cash flow of $834 million during the twelve months ended June 30, 2026.
