ACT Stock Analysis: Enact Holdings | NASDAQ
Insurance - Specialty | NASDAQ, USA | Market Cap: 6.363m USD | 12M Return: 34.5% | US29249E1091 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 17.2M
EPS Trend: 92.4%
Qual. Beats: 0
Rev. Trend: 97.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Enact Holdings, Inc. (NASDAQ: ACT) is a U.S.-based private mortgage insurance company that underwrites residential mortgage guaranty insurance, including prime-based individually underwritten loans, pool insurance, contract underwriting services, and mortgage-related reinsurance. The company serves a diverse customer base comprising large money center banks, non-bank lenders, national and regional mortgage bankers, community banks, and credit unions. Founded in 1981 and headquartered in Raleigh, North Carolina, Enact operates as a subsidiary of Genworth Holdings Inc. and was renamed from Genworth Mortgage Holdings, Inc. in May 2021, with its IPO following in September 2021.
As a provider of private mortgage insurance, Enact plays a role in facilitating home ownership by insuring lenders against borrower default, typically on loans with down payments below 20%. The U.S. private mortgage insurance industry is dominated by a small number of carriers and is closely tied to housing market conditions, mortgage origination volumes, and broader credit cycles, which can result in cyclical underwriting performance.
- High mortgage rates suppress new insurance written volume
- Home price appreciation reduces claim frequency and severity
- Capital return through share buybacks and dividends accelerates
| Net Income: 683.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -0.11 > 1.0 |
| NWC/Revenue: 521.5% < 20% (prev 45.45%; Δ 476.1% < -1%) |
| CFO/TA 0.10 > 3% & CFO 720.8m > Net Income 683.3m |
| Net Debt (-5.40b) to EBITDA (916.5m): -5.89 < 3 |
| Current Ratio: 83.68 > 1.5 & < 3 |
| Outstanding Shares: last quarter (140.3m) vs 12m ago -6.91% < -2% |
| Gross Margin: 85.87% > 18% (prev 74.60%; Δ 11.27% > 0.5%) |
| Asset Turnover: 18.24% > 50% (prev 18.06%; Δ 0.19% > 0%) |
| Interest Coverage Ratio: 18.25 > 6 (EBIT TTM 916.5m / Interest Expense TTM 50.2m) |
| A: 0.94 (Total Current Assets 6.61b - Total Current Liabilities 79.0m) / Total Assets 6.96b |
| B: 0.57 (Retained Earnings 3.96b / Total Assets 6.96b) |
| C: 0.13 (EBIT TTM 916.5m / Avg Total Assets 6.86b) |
| D: 3.46 (Book Value of Equity 5.40b / Total Liabilities 1.56b) |
| Altman-Z'' = 12.54 = AAA |
As of October 25, 2026, the stock is trading at USD 47.89 with a total of 745,832 shares traded. Over the past week, the price has changed by +3.48%, over one month by +0.29%, over three months by +4.68% and over the past year by +34.50%.
Current recommended Stop Loss: 45.70 (which is 4.6% or 1.8 ATR below the current price).
Enact Holdings has received a consensus analysts rating of 3.17. Therefore, it is recommended to hold ACT.
- StrongBuy: 1
- Buy: 0
- Hold: 4
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 49.4 | 3.2% |
P/E Trailing = 9.7637
P/E Forward = 9.1996
P/S = 5.0758
P/B = 1.2165
Revenue TTM = 1.25b USD
EBIT TTM = 916.5m USD
EBITDA TTM = 916.5m USD
Long Term Debt = 745.2m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 745.2m USD (corrected: LT Debt 745.2m + ST Debt none)
Net Debt = -5.40b USD (calculated: Debt 745.2m - CCE 6.14b)
Enterprise Value = 967.6m USD (6.36b + Debt 745.2m - CCE 6.14b)
Interest Coverage Ratio = 18.25 (Ebit TTM 916.5m / Interest Expense TTM 50.2m)
EV/FCF = 1.38x (Enterprise Value 967.6m / FCF TTM 702.9m)
FCF Yield = 72.64% (FCF TTM 702.9m / Enterprise Value 967.6m)
FCF Margin = 56.12% (FCF TTM 702.9m / Revenue TTM 1.25b)
Net Margin = 54.56% (Net Income TTM 683.3m / Revenue TTM 1.25b)
Gross Margin = 85.87% ((Revenue TTM 1.25b - Cost of Revenue TTM 177.0m) / Revenue TTM)
Gross Margin QoQ = 89.52% (prev 88.09%)
Tobins Q-Ratio = 0.14 (Enterprise Value 967.6m / Total Assets 6.96b)
Interest Expense / Debt = 6.74% (Interest Expense 50.2m / Debt 745.2m)
Taxrate = 21.12% (183.0m / 866.3m)
NOPAT = 722.9m (EBIT 916.5m * (1 - 21.12%))
Current Ratio = 87.49 (Total Current Assets 6.61b / Total Current Liabilities 75.6m)
Debt / Equity = 0.14 (Debt 745.2m / totalStockholderEquity, last quarter 5.40b)
Debt / EBITDA = -5.89 (Net Debt -5.40b / EBITDA 916.5m)
Debt / FCF = -7.68 (Net Debt -5.40b / FCF TTM 702.9m)
Total Stockholder Equity = 5.35b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.95% (Net Income 683.3m / Total Assets 6.96b)
RoE = 12.76% (Net Income TTM 683.3m / Total Stockholder Equity 5.35b)
RoCE = 15.03% (EBIT 916.5m / Capital Employed (Equity 5.35b + L.T.Debt 745.2m))
RoIC = 10.61% (NOPAT 722.9m / Invested Capital 6.81b)
WACC = 5.59% (E(6.36b)/V(7.11b) * Re(5.62%) + D(745.2m)/V(7.11b) * Rd(6.74%) * (1-Tc(0.21)))
Discount Rate = 5.62% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.55 | Cagr: -5.69%
[DCF] Terminal Value 75.64% ; FCFF base≈698.6m ; Y1≈710.5m ; Y5≈772.3m
[DCF] Fair Price = 126.4 (EV 12.0b - Net Debt -5.40b = Equity 17.4b / Shares 137.5m; r=8.35% [WACC [floored]]; 5y FCF grow 1.56% → 2.50% )
EPS Correlation: 92.42 | EPS CAGR: 5.47% | SUE: 0.72 | # QB: 0
Revenue Correlation: 97.73 | Revenue CAGR: 3.40% | SUE: 0.22 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.20 | Chg30d=+0.31% | Revisions=+0% | Analysts=4
EPS current Year (2026-12-31): EPS=4.85 | Chg30d=+0.07% | Revisions=-25% | GrowthEPS=+5.1% | GrowthRev=+2.5%
EPS next Year (2027-12-31): EPS=5.03 | Chg30d=+0.37% | Revisions=-25% | GrowthEPS=+3.7% | GrowthRev=+1.4%
[Analyst] Revisions Ratio: -29% (up=1, down=3)