Enact Holdings (ACT) AI Stock Analysis

• Market Cap: $6.11B
• Dividend Yield: 2.02%
• Average Volume (3M): 278.68K
• Price to Earnings (P/E): 9.4
• 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): 1.23
• Shares Outstanding: 144,395,770
• 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: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 4.98
• Enterprise Value/Gross Profit: 6.36
• Enterprise Value/Ebitda: 6.76
• 1Y Price Target: $46.00
• Price Target Upside: 11.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: $47.00 ▲(13.44% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

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 very high TTM net and gross margins reflect efficient underwriting and low operating leverage in mortgage insurance. Sustained margin levels support strong cash generation and reinvestment capacity, underpinning durable ROE and capital return programs even through normal housing cycles.

Strong Capital & Liquidity

A 162% PMIERs buffer plus $1.9B CRT credit and a new $435M revolver provide regulatory capital headroom and financial flexibility. This structural strength allows continued underwriting, absorb losses, and fund buybacks/dividends without weakening core solvency metrics over multi-quarter horizons.

Scale of Insurance-in-Force & New Business

Large insurance-in-force and steady new insurance written show market leadership and distribution strength. Scale produces recurring premium streams, diversification across vintages, and pricing leverage—supporting revenue durability as the MI market grows ~10–15% per guidance.

Negative Factors

Declining Persistency

Lower persistency reduces the duration of premium-bearing policies and recurring revenue, increasing churn and acquisition needs. If driven by refinance activity or lower rates, this can structurally compress lifetime premium realization and require higher new business volume to sustain earnings.

Rising Delinquencies

Sequential increases in new and total delinquencies signal potential credit deterioration. Persistently higher delinquencies would raise loss expectations, reduce reserve releases, and could force higher loss provisioning, pressuring underwriting margins and capital allocation over several quarters.

Slight YoY Operating Income Decline & Expense Step-up

A modest year-over-year drop in operating income combined with higher quarterly expenses suggests margin pressure from ceded premiums and cost increases. If these trends persist, they could erode ROE and reduce free cash flow available for buybacks and dividends 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 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	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	6.52B	6.19B	5.71B	5.87B
Cash, Cash Equivalents and Short-Term Investments	582.49M	2.13B	5.90B	5.40B	5.69B
Total Debt	744.48M	743.05M	745.42M	742.83M	740.42M
Total Liabilities	1.54B	1.53B	1.56B	1.61B	1.76B
Stockholders Equity	5.36B	5.00B	4.63B	4.10B	4.11B
Cash Flow
Free Cash Flow	0.00	686.26M	632.04M	567.13M	-113.53M
Operating Cash Flow	0.00	686.26M	632.04M	560.51M	572.12M
Investing Cash Flow	0.00	-320.51M	-229.40M	-220.25M	-398.78M
Financing Cash Flow	0.00	-382.00M	-300.73M	-252.31M	-200.29M

Enact Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 41.43 is below the 20-day moving average (MA) of 41.64, above the 50-day MA of 40.45, and above the 200-day MA of 37.43, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 9.27 is Positive, 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	$6.11B	9.37	12.75%	2.02%	2.40%	1.18%
NMIH	82 Outperform	$3.02B	7.88	16.17%	―	8.86%	9.51%
ESNT	76 Outperform	$5.92B	8.88	12.35%	1.88%	2.78%	-0.50%
RDN	70 Outperform	$4.38B	7.81	12.72%	2.78%	-3.68%	3.65%
MTG	68 Neutral	$5.99B	8.53	―	1.89%	2.20%	9.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	66 Neutral	$6.74B	11.03	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.