ACT Stock Analysis: Enact Holdings | NASDAQ
Insurance - Specialty | NASDAQ, USA | Market Cap: 6.494m USD | 12M Return: 35.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 13.7M
EPS Trend: 88.2%
Qual. Beats: 0
Rev. Trend: 96.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 4.8 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: 676.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -0.43 > 1.0 |
| NWC/Revenue: 41.24% < 20% (prev 47.17%; Δ -5.94% < -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: 7.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.6m) vs 12m ago -6.72% < -2% |
| Gross Margin: 82.11% > 18% (prev 77.65%; Δ 4.45% > 0.5%) |
| Asset Turnover: 18.12% > 50% (prev 18.11%; Δ 0.01% > 0%) |
| Interest Coverage Ratio: 17.21 > 6 (EBIT TTM 860.8m / Interest Expense TTM 50.0m) |
| A: 0.07 (Total Current Assets 596.4m - Total Current Liabilities 85.3m) / 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: 3.30 (Book Value of Equity 5.34b / Total Liabilities 1.62b) |
| Altman-Z'' = 6.58 = AAA |
As of July 21, 2026, the stock is trading at USD 46.39 with a total of 417,757 shares traded. Over the past week, the price has changed by +2.09%, over one month by +8.59%, over three months by +8.17% and over the past year by +35.58%.
Current recommended Stop Loss: 43.40 (which is 6.4% or 2.7 ATR below the current price).
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 | 46 | -0.8% |
P/E Trailing = 10.0693
P/E Forward = 9.8135
P/S = 5.2326
P/B = 1.2153
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 = 6.69b USD (6.49b + Debt 744.9m - CCE 549.0m)
Interest Coverage Ratio = 17.21 (Ebit TTM 860.8m / Interest Expense TTM 50.0m)
EV/FCF = 9.27x (Enterprise Value 6.69b / FCF TTM 721.8m)
FCF Yield = 10.79% (FCF TTM 721.8m / Enterprise Value 6.69b)
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 = 0.96 (Enterprise Value 6.69b / Total Assets 6.96b)
Interest Expense / Debt = 6.72% (Interest Expense 50.0m / Debt 744.9m)
Taxrate = 21.44% (184.6m / 860.8m)
NOPAT = 676.2m (EBIT 860.8m * (1 - 21.44%))
Current Ratio = 7.00 (Total Current Assets 596.4m / Total Current Liabilities 85.3m)
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 = 9.92% (NOPAT 676.2m / Invested Capital 6.81b)
WACC = 6.36% (E(6.49b)/V(7.24b) * Re(6.48%) + D(744.9m)/V(7.24b) * Rd(6.72%) * (1-Tc(0.21)))
Discount Rate = 6.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.11 | Cagr: -5.21%
[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: 0.12 | # 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=-0.09% | Revisions=+25% | Analysts=3
EPS next Quarter (2026-09-30): EPS=1.18 | Chg30d=-1.62% | Revisions=-25% | Analysts=3
EPS current Year (2026-12-31): EPS=4.75 | Chg30d=-1.08% | Revisions=-25% | GrowthEPS=+3.0% | GrowthRev=+2.4%
EPS next Year (2027-12-31): EPS=4.92 | Chg30d=-1.05% | Revisions=-25% | GrowthEPS=+3.7% | GrowthRev=+1.3%
[Analyst] Revisions Ratio: -29% (up=1, down=3)