Fact based stock research
Enstar Group (NasdaqGS:ESGR)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Enstar Group stock research in summary

enstargroup.com

ANALYSIS: With an Obermatt Combined Rank of 8 (worse than 92% compared with investment alternatives), Enstar Group (Reinsurance, Bermuda) shares have lower financial characteristics compared with similar stocks. Shares of Enstar Group are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives). But they show above-average growth (Growth Rank of 55) and are safely financed (Safety Rank of 85, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 8, is a sell recommendation based on Enstar Group's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Enstar Group exhibits low value (Obermatt Value Rank of 31), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 55). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 85) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	31
Growth Rank	55
Safety Rank	85
Combined Rank	8

Country	Bermuda
Industry	Reinsurance
Index	NASDAQ
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Enstar Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	53	45	32	31
GROWTH
GROWTH	55	67	1	55
SAFETY
SAFETY	85	85	85	85
SENTIMENT
SENTIMENT	n/a	1	12	^new
360° VIEW
360° VIEW	n/a	29	1	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Enstar Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	53	45	32	31
GROWTH
GROWTH	55	67	1	55
SAFETY
SAFETY	85	85	85	85
COMBINED
COMBINED	70	8	8	8

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Enstar Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Enstar Group shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Enstar Group. Price-to-Profit (also referred to as price-earnings, P/E) is 56 which means that the stock price compared with what market professionals expect for future profits is lower than for 56% of comparable companies, indicating a good value concerning Enstar Group's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 74, which means that the stock price is lower as regards to invested capital than for 74% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 89% of alternatives (only 11% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Enstar Group's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	17	42	11	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	97	37	62	56
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	90	82	69	74
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	53	45	32	31

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Enstar Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Enstar Group shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Enstar Group. Sales Growth has a rank of 99 which means that currently, professionals expect the company to grow more than 99% of its competitors. Capital Growth is also above 7% of competitors with a rank of 55, and Stock Returns with the rank of 61 is also an outperformance. Only Profit Growth is low with a rank of 7 which means that currently, professionals expect the company to grow its profits less than 93% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Enstar Group is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	6	3	3	99
PROFIT GROWTH
PROFIT GROWTH	26	87	1	7
CAPITAL GROWTH
CAPITAL GROWTH	n/a	83	9	55
STOCK RETURNS
STOCK RETURNS	78	67	63	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	55	67	1	55

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Enstar Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 85 (better than 85% compared with alternatives) for 2022, the company Enstar Group has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Enstar Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Enstar Group. Leverage is at 57, meaning the company has a below-average debt-to-equity ratio. It has less debt than 57% of its competitors. Refinancing is at a rank of 77, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 77% of its competitors. Finally, Liquidity is also good at a rank of 63, which means that the company generates more profit to service its debt than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 85 (better than 85% compared with alternatives), Enstar Group has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Enstar Group but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	65	75	45	57
REFINANCING
REFINANCING	86	77	77	77
LIQUIDITY
LIQUIDITY	82	33	69	63
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	85	85	85	85

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Enstar Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	23	15	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	2	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	n/a	n/a	^new
MARKET PULSE
MARKET PULSE	n/a	7	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	1	12	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Enstar Group.
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