Enact Holdings (ACT) AI Stock Analysis

• Market Cap: $5.84B
• Dividend Yield: 2.02%
• Average Volume (3M): 278.68K
• Price to Earnings (P/E): 9.3
• 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: 144,395,770
• 10 Day Avg. Volume: 349,492
• 30 Day Avg. Volume: 278,682
• PEG Ratio: 1.17
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 4.21
• P/FCF Ratio: 7.37
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.92
• Enterprise Value/Gross Profit: 6.74
• Enterprise Value/Ebitda: 6.74
• 1Y Price Target: $42.25
• Price Target Upside: 4.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: $47.00 ▲(16.54% Upside)

The score is led by strong financial performance (high profitability, low leverage, and strong cash generation) and an attractive valuation (low P/E with a solid dividend). Technicals are supportive but somewhat capped near-term by elevated Stochastic, while the earnings call was broadly positive on capital returns and credit trends despite some operating and macro headwinds.

Positive Factors

High Profitability & Margins

Enact's sustained high gross and net margins with mid-teens revenue growth indicate durable underwriting economics and pricing power in mortgage insurance. Strong margins support internal capital generation for reserves, investment, and returns, underpinning resilience across credit cycles.

Capital Strength & Shareholder Returns

Robust cash generation and a prudent capital buffer enable meaningful shareholder returns. The company returned >$500M in 2025 and authorized a $500M buyback, reflecting excess capital availability and disciplined allocation that can sustainably support buybacks and dividends over the medium term.

Pricing Tech & Operational Scale

Rate360 pricing enhancements and operational advances strengthen Enact's competitive edge in risk selection and pricing accuracy. Combined with scale benefits from large insurance-in-force, these capabilities support consistent new business margins and durable market share in mortgage insurance.

Negative Factors

Declining Persistency

Lower persistency reduces in-force premium retention and increases acquisition needs to replace lapsing policies. Driven by lower rates and refinance activity, this trend can structurally compress earned premiums and uplift acquisition expense amortization, weighing on medium-term revenue durability.

Rising Delinquencies

Sequential increases in new and total delinquencies signal potential credit deterioration. Higher delinquency levels can translate into elevated claim frequency or larger reserve needs, pressuring loss ratios and capital planning if the trend persists through a multi-quarter credit cycle.

Macro & Regulatory Uncertainty

Enact's performance is structurally tied to mortgage origination volumes and regulatory capital regimes. Policy shifts at FHA/GSEs or sustained mortgage volatility can alter originations, pricing, and PMIERs requirements, creating durable uncertainty for growth, capital returns, and strategic planning.

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 driven by high profitability (TTM net margin 55.36%), healthy revenue growth (15.3% TTM), prudent leverage (debt-to-equity 0.14), and robust free cash flow growth (55.3% TTM). Minor cautions include slight gross margin slippage and a modest ROE decline versus last year.

Income Statement

Enact Holdings demonstrates strong profitability with a consistent increase in revenue and robust margins. The TTM data shows a gross profit margin of 74.83% and a net profit margin of 55.36%, indicating efficient cost management and high profitability. Revenue growth is healthy at 15.3% in the TTM period, showcasing strong business expansion. However, a slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.14, indicating prudent financial leverage. The return on equity is strong at 13.29%, reflecting effective use of equity capital. The equity ratio stands at 77.32%, highlighting a stable financial structure. However, the slight decrease in ROE from the previous year suggests a need for improved equity utilization.

Cash Flow

Enact Holdings shows a robust cash flow position with a significant free cash flow growth rate of 55.3% in the TTM period. The free cash flow to net income ratio of 1.0 indicates efficient conversion of profits into cash. However, the operating cash flow to net income ratio is not available for the TTM period, which limits a complete assessment of cash flow efficiency.

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	893.35M	940.31M	903.38M	949.75M	748.55M	490.66M
EBITDA	893.35M	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	2.28B	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: 40.33
• 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 40.33 is above the 20-day moving average (MA) of 39.46, above the 50-day MA of 39.38, and above the 200-day MA of 36.96, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 86.14 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
ACT	82 Outperform	$5.84B	9.29	12.75%	2.02%	2.40%	1.18%
ESNT	81 Outperform	$6.16B	9.27	12.35%	1.88%	2.78%	-0.50%
NMIH	79 Outperform	$3.02B	8.09	16.17%	―	8.86%	9.51%
MTG	78 Outperform	$6.16B	8.77	14.40%	1.89%	2.20%	9.90%
FAF	74 Outperform	$6.52B	13.74	9.28%	3.58%	25.99%	426.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RDN	63 Neutral	$4.46B	8.21	12.56%	2.78%	-3.68%	3.65%

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.