(ACT) Enact Holdings - Overview
Sector: Financial Services | Industry: Insurance - Specialty | Exchange: NASDAQ (USA) | Market Cap: 5.965m USD | Total Return: 21.3% in 12m
Avg Turnover: 13.6M
EPS Trend: 88.2%
Qual. Beats: 0
Rev. Trend: 96.9%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Enact Holdings, Inc. (ACT), formerly Genworth Mortgage Holdings, operates as a private mortgage insurance provider in the United States. The company specializes in writing residential mortgage guaranty insurance, primarily covering prime-based, individually underwritten loans. Its service portfolio includes pool mortgage insurance, contract underwriting, and reinsurance products for a client base of money center banks, credit unions, and non-bank lenders.
The private mortgage insurance sector functions as a credit enhancement for lenders, typically required for residential loans where the borrower provides a down payment of less than 20%. This business model generates revenue through recurring policy premiums while transferring a portion of the credit risk from mortgage lenders to the insurer. For a deeper look at the companys fundamentals, consider reviewing the latest valuation metrics on ValueRay. Since its founding in 1981, Enact has operated as a subsidiary of Genworth Holdings, maintaining its headquarters in Raleigh, North Carolina.
- Mortgage insurance premium volume tracks US residential housing market activity levels
- Higher interest rates reduce mortgage refinancing activity and new loan originations
- Credit quality of insured loan portfolios determines loss ratio and profitability
- Capital returns to shareholders depend on regulatory compliance and PMIERs sufficiency
- Housing market inventory shortages impact the growth of primary insurance in force
| Net Income: 676.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -0.43 > 1.0 |
| NWC/Revenue: 40.72% < 20% (prev 47.17%; Δ -6.45% < -1%) |
| CFO/TA 0.10 > 3% & CFO 721.8m > Net Income 676.2m |
| Net Debt (195.8m) to EBITDA (860.8m): 0.23 < 3 |
| Current Ratio: 6.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.6m) vs 12m ago -6.72% < -2% |
| Gross Margin: 82.11% > 18% (prev 0.78%; Δ 8.13k% > 0.5%) |
| Asset Turnover: 18.12% > 50% (prev 18.11%; Δ 0.01% > 0%) |
| Interest Coverage Ratio: 17.21 > 6 (EBITDA TTM 860.8m / Interest Expense TTM 50.0m) |
| A: 0.07 (Total Current Assets 596.4m - Total Current Liabilities 91.6m) / Total Assets 6.96b |
| B: 0.55 (Retained Earnings 3.82b / Total Assets 6.96b) |
| C: 0.13 (EBIT TTM 860.8m / Avg Total Assets 6.84b) |
| D: 2.31 (Book Value of Equity 3.73b / Total Liabilities 1.62b) |
| Altman-Z'' = 5.53 = AAA |
As of May 28, 2026, the stock is trading at USD 42.63 with a total of 278,781 shares traded.
Over the past week, the price has changed by -0.49%,
over one month by -2.96%,
over three months by +1.89% and
over the past year by +21.28%.
Enact Holdings has received a consensus analysts rating of 3.40. Therefore, it is recommended to hold ACT.
- StrongBuy: 1
- Buy: 0
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 45.8 | 7.3% |
P/E Trailing = 9.2489
P/E Forward = 8.2508
P/S = 4.8063
P/B = 1.1163
Revenue TTM = 1.24b USD
EBIT TTM = 860.8m USD
EBITDA TTM = 860.8m USD
Long Term Debt = 744.9m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 744.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 195.8m USD (calculated: Debt 744.9m - CCE 549.0m)
Enterprise Value = 6.16b USD (5.97b + Debt 744.9m - CCE 549.0m)
Interest Coverage Ratio = 17.21 (Ebit TTM 860.8m / Interest Expense TTM 50.0m)
EV/FCF = 8.54x (Enterprise Value 6.16b / FCF TTM 721.8m)
FCF Yield = 11.72% (FCF TTM 721.8m / Enterprise Value 6.16b)
FCF Margin = 58.23% (FCF TTM 721.8m / Revenue TTM 1.24b)
Net Margin = 54.55% (Net Income TTM 676.2m / Revenue TTM 1.24b)
Gross Margin = 82.11% ((Revenue TTM 1.24b - Cost of Revenue TTM 221.8m) / Revenue TTM)
Gross Margin QoQ = 88.09% (prev 94.28%)
Tobins Q-Ratio = 0.88 (Enterprise Value 6.16b / Total Assets 6.96b)
Interest Expense / Debt = 6.72% (Interest Expense 50.0m / Debt 744.9m)
Taxrate = 21.37% (45.6m / 213.4m)
NOPAT = 676.8m (EBIT 860.8m * (1 - 21.37%))
Current Ratio = 6.51 (Total Current Assets 596.4m / Total Current Liabilities 91.6m)
Debt / Equity = 0.14 (Debt 744.9m / totalStockholderEquity, last quarter 5.34b)
Debt / EBITDA = 0.23 (Net Debt 195.8m / EBITDA 860.8m)
Debt / FCF = 0.27 (Net Debt 195.8m / FCF TTM 721.8m)
Total Stockholder Equity = 5.31b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.88% (Net Income 676.2m / Total Assets 6.96b)
RoE = 12.74% (Net Income TTM 676.2m / Total Stockholder Equity 5.31b)
RoCE = 14.22% (EBIT 860.8m / Capital Employed (Equity 5.31b + L.T.Debt 744.9m))
RoIC = 10.71% (NOPAT 676.8m / Invested Capital 6.32b)
WACC = 6.47% (E(5.97b)/V(6.71b) * Re(6.62%) + D(744.9m)/V(6.71b) * Rd(6.72%) * (1-Tc(0.21)))
Discount Rate = 6.62% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -5.39%
[DCF] Terminal Value 75.37% ; FCFF base≈723.4m ; Y1≈723.1m ; Y5≈759.3m
[DCF] Fair Price = 83.27 (EV 11.8b - Net Debt 195.8m = Equity 11.6b / Shares 139.6m; r=8.35% [WACC [floored]]; 5y FCF grow -0.53% → 2.50% )
EPS Correlation: 88.18 | EPS CAGR: 4.68% | SUE: 0.13 | # QB: 0
Revenue Correlation: 96.92 | Revenue CAGR: 3.88% | SUE: -0.43 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.19 | Chg30d=-0.46% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=1.20 | Chg30d=+1.25% | Revisions=+20% | Analysts=2
EPS current Year (2026-12-31): EPS=4.80 | Chg30d=+1.06% | Revisions=+20% | GrowthEPS=+4.1% | GrowthRev=+2.4%
EPS next Year (2027-12-31): EPS=4.98 | Chg30d=-1.13% | Revisions=+20% | GrowthEPS=+3.7% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: +20%