Enact Holdings (ACT) AI Stock Analysis

• Market Cap: $5.93B
• Dividend Yield: 2.02%
• Average Volume (3M): 278.68K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.50
• Revenue Growth: 2.40%
• EPS Growth: 1.18%
• Country: US
• Employees: 421
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 1.23
• Shares Outstanding: 141,513,870
• 10 Day Avg. Volume: 349,492
• 30 Day Avg. Volume: 278,682
• PEG Ratio: 2.74
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 8.12
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 5.08
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: 6.90
• 1Y Price Target: $46.00
• Price Target Upside: 8.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.64
• Revenue Forecast (FY): $1.28B

• Rating: 82 Outperform
• Price Target: $49.00 ▲(15.76% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

Overall score driven primarily by strong financial performance (high profitability, low leverage, solid cash generation) and attractive valuation (low P/E plus ~2% yield). Earnings call commentary further supports the score via sizable planned capital returns and improved credit performance, while technicals are supportive but not strongly bullish and near-term operational headwinds (persistency/delinquency trends) temper upside.

Positive Factors

Capital Strength

A 162% PMIERs sufficiency and ~$1.9B of third-party CRT capital provide a durable regulatory buffer and financial flexibility. This strengthens underwriting capacity, supports sustained capital returns and repurchases, and reduces the chance of forced capital actions across 2–6 months of stress.

Credit Performance

A $60M net reserve release and a 7% Q4 loss ratio indicate improving claim experience and reserve adequacy. Sustained favorable cure and loss trends lower long-term volatility in underwriting results, supporting predictable earnings and enabling capital deployment strategies over the medium term.

Scale & Earnings

Robust adjusted operating income and record $273B insurance-in-force create recurring premium streams and investment income. Scale in-force provides structural revenue stability and cash generation, underpinning consistent free cash flow and the ability to fund buybacks, dividends, and underwriting growth.

Negative Factors

Persistency

Persistency falling to 80% shortens average premium tails, reducing future net premium revenue and investment income per loan. If refinance activity or rate shifts persist, revenue durability and profitability per issued policy will be structurally weaker over the next several quarters.

Rising Delinquencies

Sequential increases in new and total delinquencies signal rising credit stress that can translate into higher claims and reserve needs. Even modest upward trends in delinquency rates can pressure loss ratios and capital plans, challenging underwriting margins and dividend/repurchase capacity over months.

Ceded Premiums / Margin Pressure

Higher ceded premiums and a lower net earned premium rate reduce revenue retention per unit of risk. Reliance on CRT/reinsurance to manage capital can compress margins and create sensitivity to counterparty capacity or pricing, constraining net underwriting economics over the medium term.

Enact Holdings Business Overview & Revenue Model

Company Description

Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company is involved in writing and assuming residential mortgage guaranty insurance. It offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and contract underwriting services for mortgage lenders. The company was formerly known as Genworth Mortgage Holdings, Inc. and changed its name to Enact Holdings, Inc. in May 2021. Enact Holdings, Inc. was founded in 1981 and is headquartered in Raleigh, North Carolina. Enact Holdings, Inc. is a subsidiary of Genworth Holdings, Inc.

How the Company Makes Money

Enact Holdings generates revenue primarily through the sale of mortgage insurance policies, which are designed to protect lenders against losses in the event of borrower default. The company charges premiums for these insurance policies, which can be structured as one-time upfront payments or ongoing monthly premiums. Additionally, Enact Holdings earns revenue from risk management services, providing analytics and consulting to lenders, which helps them in managing their mortgage portfolios effectively. Significant partnerships with financial institutions and collaborations with technology providers enhance its service offerings and expand its market reach, contributing to stable revenue growth.

Enact Holdings Financial Statement Overview

Summary

Strong overall fundamentals: steadily rising revenue and exceptionally high profitability, a conservatively leveraged balance sheet (low debt-to-equity), and generally solid operating/free cash flow. Offsets include a slight net income dip in 2025 vs. 2024 despite faster revenue growth and some historical unevenness/uncertainty in cash conversion metrics.

Income Statement

Revenue has grown steadily from 2023–2025 (including a sharp acceleration in 2025), and profitability is consistently very strong, with net margins remaining exceptionally high across the period. However, net income dipped slightly in 2025 versus 2024 despite the large revenue increase, suggesting some near-term profitability normalization even as operating performance remains robust.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage (debt-to-equity consistently ~0.14–0.19) and a growing equity base over time. Returns on equity are solid but have trended down from 2022 highs, indicating profitability is still strong but not as elevated as it was a couple of years ago.

Cash Flow

Cash generation is strong overall: operating cash flow and free cash flow are positive in most years and align closely with reported earnings (free cash flow roughly equal to net income in recent years). The main blemish is the negative free cash flow in 2021 and some coverage ratio data points showing as zero in multiple years, which introduces uncertainty around consistency of cash conversion and debt coverage trends despite the clear improvement in 2024–2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23B	1.20B	1.15B	1.09B	1.12B
Gross Profit	1.12B	940.31M	903.38M	949.75M	748.55M
EBITDA	908.79M	929.22M	903.38M	949.92M	746.23M
Net Income	674.24M	688.07M	665.51M	704.16M	546.68M
Balance Sheet
Total Assets	6.89B	6.55B	6.22B	5.74B	5.91B
Cash, Cash Equivalents and Short-Term Investments	582.49M	599.43M	615.68M	513.77M	425.83M
Total Debt	744.48M	760.32M	768.68M	771.26M	775.82M
Total Liabilities	1.54B	1.55B	1.59B	1.63B	1.81B
Stockholders Equity	5.36B	5.00B	4.63B	4.10B	4.11B
Cash Flow
Free Cash Flow	724.52M	686.26M	632.04M	567.13M	-113.53M
Operating Cash Flow	724.52M	686.26M	632.04M	560.51M	572.12M
Investing Cash Flow	-226.38M	-320.51M	-229.40M	-220.25M	-398.78M
Financing Cash Flow	-515.08M	-382.00M	-300.73M	-252.31M	-200.29M

Enact Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACT, the sentiment is Positive. The current price of 42.33 is below the 20-day moving average (MA) of 42.41, above the 50-day MA of 40.65, and above the 200-day MA of 37.51, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACT.

Enact Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	82 Outperform	$5.93B	8.72	12.75%	2.02%	2.40%	1.18%
NMIH	82 Outperform	$2.97B	8.30	16.17%	―	8.86%	9.51%
ESNT	76 Outperform	$5.69B	9.33	12.35%	1.88%	2.78%	-0.50%
RDN	70 Outperform	$4.69B	8.52	12.72%	2.78%	-3.68%	3.65%
MTG	68 Neutral	$5.78B	8.93	14.31%	1.89%	2.20%	9.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	66 Neutral	$7.09B	10.21	11.95%	3.58%	25.99%	426.44%

Enact Holdings Corporate Events

Enact Holdings Announces Strong 2025 Results, New Buyback Plan

On February 3, 2026, Enact Holdings reported fourth-quarter and full-year 2025 results showing continued profitability and capital strength, with Q4 GAAP net income of $177 million, or $1.22 per diluted share, and adjusted operating income of $179 million, or $1.23 per diluted share. For 2025, the company generated $674 million in net income, maintained a solid adjusted operating return on equity of 13.3%, and grew primary insurance in-force to $273 billion, up 2% year over year. Losses incurred fell to $18 million in the fourth quarter, driving a loss ratio of 7%, helped by a $60 million net reserve release tied to favorable cure performance and lower expected claim rates, while elevated persistency and stable net premiums earned supported earnings despite a challenging housing backdrop. Enact also underscored its robust capital position, with PMIERs sufficiency of 162% (about $1.9 billion) and book value per share of $37.66, and returned $503 million to shareholders in 2025 through dividends and $382 million of share repurchases. In a further demonstration of shareholder-return focus, the board on February 3, 2026 authorized a new share repurchase program of up to $500 million of common stock and the company entered into a stock buyback agreement with its majority owner Genworth Financial, moves that reinforce capital management discipline and signal confidence in the company’s long-term earnings power.

The most recent analyst rating on (ACT) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Enact Holdings stock, see the ACT Stock Forecast page.