Essent Group: A look at the long -term investor gains

Essent Group: A look at the long -term investor gains

The current developments related to the essent group Ltd. (NYSE: ESNT) show that the share prices have dropped by 12% in recent weeks. Despite these short -term declines, there has been an increase in the share price of only 21%over the past three years. In view of the overall increasing market conditions, many shareholders are anything but enthusiastic about it.

Warren Buffett once emphasized in his essay "The Superinvestors of Graham-and-Doddsville" that share prices do not always reflect the real value of a company. At Essent Group, however, an interesting trend has emerged: the profit development per share (EPS) has shown annual growth of 7.5% in the past three years, which corresponds approximately to 7% annual price increase. These figures indicate that market perception in relation to the company has basically not changed significantly.

The return for the shareholders in detail

In order to assess the actual success of an investment, it is important to distinguish between the overall return of the shareholders (TSR) and the pure course return. The TSR also takes into account the performance of dividends that have been reinvested. In the case of the Essent Group, the TSR has been with impressive 29% over the past three years, while the pure course return was only 21%. This shows that the dividends have contributed to significantly increasing the overall return.

Last year, the shareholders of Essent Group achieved an overall return of 18%, which was below the market average, but better section than the average annual return of 3% over a five -year period. This could indicate an improvement in the company over time.

future development and forecasts

ESSENT Group has recently experienced a positive development in terms of profitability, but the crucial question remains whether the company will also be able to generate sales growth. Analyst forecasts could give further insights as to whether the EPS growth can be maintained. It should be noted that information about possible insider purchases could also be important and should indicate whether the insiders' trust is growing into the future development of the company.

For those who want to dive deeper into the topic, comprehensive analyzes and reports on the evaluation and financial health of the Essent Group are available. These reports provide a detailed overview of possible risks and opportunities for investors who are interested in this company. Further information can be found in the articles of Simply Wall St .