Enact Holdings (ACT) AI Stock Analysis

• Market Cap: $5.62B
• Dividend Yield: 2.11%
• Average Volume (3M): 258.56K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.51
• 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: 232,316
• 30 Day Avg. Volume: 258,559
• 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: 1.14
• Enterprise Value/Revenue: 5.25
• Enterprise Value/Gross Profit: 7.20
• Enterprise Value/Ebitda: 7.20
• 1Y Price Target: $40.67
• Price Target Upside: 4.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.44
• Revenue Forecast (FY): $1.25B

• Rating: 82 Outperform
• Price Target: $44.00 ▲(13.23% Upside)

Enact Holdings receives a strong overall stock score driven by robust financial performance and attractive valuation. The company's strategic initiatives and positive earnings call sentiment further enhance its outlook. Technical indicators support a positive trend, though caution is advised due to potential overbought conditions.

Positive Factors

Strong Financial Health

The company's strong financial health, marked by profitability and efficient cash flow, positions it well for sustainable growth and resilience against economic fluctuations.

Increased Capital Return

The increased capital return expectation reflects robust business performance and confidence in strategic initiatives, enhancing shareholder value over the long term.

Strong Insurance Metrics

Growth in insurance in-force indicates expanding market presence and effective risk management, supporting long-term revenue stability and growth.

Negative Factors

Delinquency Increase

Rising delinquencies could signal potential risk exposure and impact future profitability, necessitating careful monitoring and management to sustain financial health.

Decline in Operating Income Per Share

The decline in operating income per share suggests pressure on profitability, which may challenge earnings growth if not addressed through strategic cost management.

Flat Net Premiums

Stagnant net premiums could indicate competitive pressures or market saturation, potentially limiting revenue growth unless new strategies are implemented.

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 strong financial health with impressive profitability, a solid balance sheet, and robust cash flow generation. The company is well-positioned for growth with efficient cost management and prudent financial leverage. Minor areas for improvement include maintaining gross profit margins and optimizing equity utilization.

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: 38.86
• 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 38.86 is above the 20-day moving average (MA) of 37.63, above the 50-day MA of 36.84, and above the 200-day MA of 35.67, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 80.94 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	$5.62B	8.94	12.75%	2.11%	2.40%	1.18%
NMIH	79 Outperform	$2.94B	8.00	16.17%	―	8.86%	9.51%
MTG	78 Outperform	$6.35B	9.12	14.40%	1.98%	2.20%	9.90%
FAF	77 Outperform	$6.63B	13.98	9.28%	3.47%	25.99%	426.44%
ESNT	73 Outperform	$6.10B	9.02	12.35%	2.00%	2.78%	-0.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RDN	66 Neutral	$4.81B	8.86	12.56%	2.88%	-3.68%	3.65%

Enact Holdings Corporate Events

Enact Holdings Reports Strong Q3 2025 Earnings

Enact Holdings, Inc., headquartered in Raleigh, North Carolina, is a leading U.S. private mortgage insurance provider committed to helping individuals achieve homeownership through its expertise in underwriting and risk management.

Enact Holdings Inc. Reports Strong Quarter with Positive Outlook

Enact Holdings Inc. recently held its earnings call, revealing a strong quarter characterized by increased capital return expectations, a new credit facility, and positive ratings upgrades. Despite facing challenges such as increased delinquencies and a slight decline in adjusted operating income per share, the company’s overall business performance and strategic initiatives suggest a largely positive outlook.

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.