Enact Holdings (ACT) AI Stock Analysis

• Market Cap: $5.40B
• Dividend Yield: 2.14%
• Average Volume (3M): 309.03K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.53
• Revenue Growth: 2.40%
• EPS Growth: 1.18%
• Country: US
• Employees: 421
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 1.12
• Shares Outstanding: 144,395,770
• 10 Day Avg. Volume: 292,752
• 30 Day Avg. Volume: 309,028
• PEG Ratio: 1.17
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 4.20
• P/FCF Ratio: 7.37
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 5.25
• Enterprise Value/Gross Profit: 9.59
• Enterprise Value/Ebitda: 7.21
• 1Y Price Target: $40.67
• Price Target Upside: 8.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.42
• Revenue Forecast (FY): $1.24B

• Rating: 80 Outperform
• Price Target: $41.00 ▲(8.98% Upside)

Enact Holdings demonstrates a robust financial performance with strong profitability and a solid balance sheet, contributing significantly to its overall score. The company's attractive valuation and positive earnings call further enhance its investment appeal. However, technical indicators suggest some caution due to mixed signals, which slightly temper the overall score.

Positive Factors

Strong Financial Position

The positive ratings upgrade reflects Enact's robust financial health, enhancing its credibility and potentially lowering borrowing costs, which supports long-term growth and stability.

Effective Risk Management

Securing additional reinsurance coverage demonstrates proactive risk management, reducing potential losses and ensuring financial stability in volatile markets.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Negative Factors

Delinquency Increase

Rising delinquencies can signal increased risk exposure and potential financial strain, potentially impacting future profitability and cash flow stability.

Flat Net Premiums

Flat net premiums suggest challenges in pricing power or market conditions, which could limit revenue growth and affect long-term financial performance.

Decline in Operating Income Per Share

A decline in operating income per share may indicate pressure on profitability, affecting investor returns and potentially limiting capital reinvestment capacity.

Enact Holdings Business Overview & Revenue Model

Company Description

Enact Holdings (ACT) is a leading provider of mortgage insurance and related services in the United States. The company operates primarily within the financial services sector, focusing on enabling homeownership by reducing the risk for lenders through mortgage insurance solutions. Enact Holdings offers a range of products, including private mortgage insurance, risk management services, and technology solutions that support lenders in their mortgage origination processes.

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

Enact Holdings exhibits a strong financial foundation with robust profitability, zero debt reliance, and substantial equity. The company’s consistent revenue growth, high profit margins, and strong cash flows reinforce its stability and growth potential. Despite the absence of EBITDA reporting, the overall financial health remains solid, positioning the company well for future opportunities and challenges in the insurance industry.

Income Statement

Enact Holdings shows strong profitability with a consistent increase in Total Revenue from $1,156,686,000 in 2023 to $1,201,774,000 in 2024, representing a revenue growth of approximately 4.2%. The company maintains a high Gross Profit Margin of 100% due to zero cost of goods sold. Additionally, a Net Profit Margin of 57.2% in 2024 indicates robust profitability, supported by a consistent rise in EBIT Margin from 78.3% in 2023 to 82.2% in 2024. However, the absence of reported EBITDA figures could limit the comprehensive analysis of operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a Debt-to-Equity Ratio of 0 in 2024, demonstrating no reliance on debt financing. A Return on Equity (ROE) of 13.8% in 2024 underscores effective management in generating profits from shareholders’ equity. Additionally, an Equity Ratio of 76.6% suggests a strong equity base relative to total assets, which enhances financial stability and reduces financial risk.

Cash Flow

The cash flow statement indicates healthy cash generation with an Operating Cash Flow to Net Income Ratio of 1.0 in 2024, showing efficient conversion of net income into cash. A Free Cash Flow of $686,262,000 in 2024 demonstrates strong cash availability for reinvestment or shareholder returns. However, the Free Cash Flow Growth Rate is limited due to a high base effect from the prior year, indicating moderate growth potential in cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.20B	1.15B	1.09B	1.12B	1.11B
Gross Profit	670.63M	940.31M	903.38M	949.75M	748.55M	490.66M
EBITDA	892.36M	929.22M	903.38M	949.92M	746.23M	490.66M
Net Income	659.82M	688.07M	665.51M	704.16M	546.68M	370.42M
Balance Sheet
Total Assets	6.88B	6.52B	6.19B	5.71B	5.87B	5.65B
Cash, Cash Equivalents and Short-Term Investments	6.61B	2.13B	5.90B	5.40B	5.69B	5.50B
Total Debt	744.11M	743.05M	745.42M	742.83M	740.42M	738.16M
Total Liabilities	1.56B	1.53B	1.56B	1.61B	1.76B	1.77B
Stockholders Equity	5.32B	5.00B	4.63B	4.10B	4.11B	3.88B
Cash Flow
Free Cash Flow	704.38M	686.26M	632.04M	567.13M	-113.53M	704.35M
Operating Cash Flow	704.38M	686.26M	632.04M	560.51M	572.12M	704.35M
Investing Cash Flow	-373.35M	-320.51M	-229.40M	-220.25M	-398.78M	-1.14B
Financing Cash Flow	-460.82M	-382.00M	-300.73M	-252.31M	-200.29M	300.30M

Enact Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 37.62 is above the 20-day moving average (MA) of 36.19, above the 50-day MA of 37.09, and above the 200-day MA of 35.53, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 90.66 is Negative, 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
NMIH	82 Outperform	$2.89B	7.89	16.17%	―	8.86%	9.51%
ACT	80 Outperform	$5.40B	8.59	12.75%	2.14%	2.40%	1.18%
MTG	78 Outperform	$6.33B	9.09	14.40%	1.97%	2.20%	9.90%
RDN	77 Outperform	$4.79B	8.82	12.56%	2.85%	-3.68%	3.65%
ESNT	73 Outperform	$6.10B	9.02	12.35%	1.99%	2.78%	-0.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	60 Neutral	$6.51B	13.72	9.28%	3.47%	25.99%	426.44%

Enact Holdings Corporate Events

Enact Holdings Secures New $435 Million Credit Facility

Enact Holdings, Inc. entered into a new Credit Agreement on September 30, 2025, establishing a revolving credit facility of $435 million, which includes a $217.5 million accordion. This new facility, which remained undrawn as of the closing date, replaces the previous $200 million revolving credit facility from June 30, 2022, as part of the company’s financial restructuring efforts.

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