News about Essent Group

Essent Group (NYSE:ESNT) closed at $62.04 on October 13 and has returned 6.80% over the last six months. The company is primarily a mortgage insurer that protects lenders when borrowers with small down payments stop paying, and has added title insurance and a reinsurance arm. Revenue rose 13.60% in the latest quarter while closest peer MGIC's revenue fell, and operating margin is 65.75%. However, return on equity is 12.01%, below MGIC's 13.92%, and most of its profit still depends on American homeowners keeping their jobs. The shares trade at 9.13 times trailing earnings and 8.23 times expected next-year earnings, which the article says looks like an obvious mispricing until the market's concerns are weighed.