Enact Holdings (ACT) AI Stock Analysis

• Market Cap: $5.36B
• Dividend Yield: 2.17%
• Average Volume (3M): 412.31K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.57
• Revenue Growth: 3.15%
• EPS Growth: 5.70%
• Country: US
• Employees: 421
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 1.15
• Shares Outstanding: 147,505,620
• 10 Day Avg. Volume: 277,696
• 30 Day Avg. Volume: 412,314
• 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: 1.18
• Enterprise Value/Revenue: 5.19
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 5.71
• 1Y Price Target: $40.67
• Price Target Upside: 10.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 84 Outperform
• Price Target: $43.00 ▲(17.26% Upside)

Enact Holdings scores highly due to its strong financial performance and optimistic earnings call sentiment. The company's low P/E ratio and solid dividend yield enhance its valuation appeal. Technical analysis presents mixed signals, but the overall outlook remains positive, driven by robust profitability and strategic achievements.

Positive Factors

Strong Financial Position

Enact Holdings' zero debt reliance enhances financial stability, providing flexibility to invest in growth opportunities and withstand economic downturns.

Robust Profitability

High profit margins reflect efficient operations and strong market position, enabling sustained reinvestment in business growth and shareholder returns.

Record New Insurance Written

Significant growth in new insurance written demonstrates strong demand for Enact's products, supporting future revenue growth and market expansion.

Negative Factors

Decreased Earnings Per Share

A decrease in earnings per share may indicate challenges in maintaining profit growth, potentially impacting investor confidence and future capital returns.

Challenges in the Housing Market

Housing market challenges could limit growth in mortgage insurance demand, affecting Enact's revenue and market position in the near to mid-term.

Decreased Persistency

Lower persistency rates may lead to reduced premium income from existing policies, impacting long-term revenue stability and profitability.

Enact Holdings Business Overview & Revenue Model

Company Description

Enact Holdings, Inc. (ACT) is a prominent provider in the United States mortgage insurance sector, offering essential risk management solutions to mortgage lenders. The company's core products include private mortgage insurance (PMI) policies, designed to protect lenders from financial losses in the event of borrower defaults. Enact Holdings plays a crucial role in enabling homeownership by reducing the risk exposure of lenders and facilitating access to mortgage financing for borrowers who may not have substantial down payments.

How the Company Makes Money

Enact Holdings generates revenue primarily through the sale of private mortgage insurance policies to mortgage lenders. These policies are typically required by lenders when borrowers are unable to make a down payment of at least 20% of the home's purchase price. The company earns premiums from these insurance policies, which constitute its primary revenue stream. Additionally, Enact Holdings may engage in reinsurance agreements to manage its risk exposure and optimize capital efficiency. Key factors contributing to its earnings include the volume of new insurance written, persistency of existing policies, and overall economic conditions affecting the housing and mortgage markets. The company also benefits from strategic partnerships with major lenders, which can enhance its distribution channels and market reach.

Enact Holdings Financial Statement Overview

Summary

Enact Holdings exhibits a strong financial foundation with robust profitability, zero debt reliance, and substantial equity. The company’s consistent revenue growth, high profit margins, and strong cash flows reinforce its stability and growth potential. Despite the absence of EBITDA reporting, the overall financial health remains solid, positioning the company well for future opportunities and challenges in the insurance industry.

Income Statement

Enact Holdings shows strong profitability with a consistent increase in Total Revenue from $1,156,686,000 in 2023 to $1,201,774,000 in 2024, representing a revenue growth of approximately 4.2%. The company maintains a high Gross Profit Margin of 100% due to zero cost of goods sold. Additionally, a Net Profit Margin of 57.2% in 2024 indicates robust profitability, supported by a consistent rise in EBIT Margin from 78.3% in 2023 to 82.2% in 2024. However, the absence of reported EBITDA figures could limit the comprehensive analysis of operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a Debt-to-Equity Ratio of 0 in 2024, demonstrating no reliance on debt financing. A Return on Equity (ROE) of 13.8% in 2024 underscores effective management in generating profits from shareholders’ equity. Additionally, an Equity Ratio of 76.6% suggests a strong equity base relative to total assets, which enhances financial stability and reduces financial risk.

Cash Flow

The cash flow statement indicates healthy cash generation with an Operating Cash Flow to Net Income Ratio of 1.0 in 2024, showing efficient conversion of net income into cash. A Free Cash Flow of $686,262,000 in 2024 demonstrates strong cash availability for reinvestment or shareholder returns. However, the Free Cash Flow Growth Rate is limited due to a high base effect from the prior year, indicating moderate growth potential in cash flow.

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	915.13M	943.06M	1.15B	949.75M	748.55M	1.11B
EBITDA	1.11B	929.22M	903.38M	949.92M	746.23M	490.66M
Net Income	676.99M	688.07M	665.51M	704.16M	546.68M	370.42M
Balance Sheet
Total Assets	6.77B	6.52B	6.19B	5.71B	5.87B	5.65B
Cash, Cash Equivalents and Short-Term Investments	6.51B	2.13B	5.90B	5.40B	5.69B	5.50B
Total Debt	743.75M	743.05M	745.42M	742.83M	740.42M	738.16M
Total Liabilities	1.55B	1.53B	1.56B	1.61B	1.76B	1.77B
Stockholders Equity	5.22B	5.00B	4.63B	4.10B	4.11B	3.88B
Cash Flow
Free Cash Flow	700.51M	686.26M	632.04M	567.13M	-113.53M	704.35M
Operating Cash Flow	700.51M	686.26M	632.04M	560.51M	572.12M	704.35M
Investing Cash Flow	-354.43M	-320.51M	-229.40M	-220.25M	-398.78M	-1.14B
Financing Cash Flow	-432.14M	-382.00M	-300.73M	-252.31M	-200.29M	300.30M

Enact Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.67
• 50DMA: Negative
• 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 36.67 is above the 20-day moving average (MA) of 36.36, below the 50-day MA of 37.47, and above the 200-day MA of 35.26, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.40 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	84 Outperform	$5.36B	8.26	13.47%	2.17%	3.15%	5.70%
RDN	78 Outperform	$4.67B	8.63	13.07%	2.96%	0.24%	3.14%
NMIH	77 Outperform	$2.87B	7.82	16.91%	―	9.99%	11.47%
MTG	76 Outperform	$6.31B	8.99	14.85%	1.97%	3.26%	12.70%
ESNT	74 Outperform	$6.01B	8.90	12.94%	1.98%	4.79%	-0.76%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	62 Neutral	$6.47B	13.65	9.28%	3.41%	25.99%	426.44%

Enact Holdings Corporate Events

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.

Enact Holdings Inc. Reports Strong Earnings Amid Economic Uncertainties

Enact Holdings Inc. recently held its earnings call, where the sentiment was largely positive, underscoring strong capital returns and robust credit performance. However, the company also acknowledged economic uncertainties and a decline in persistency and new insurance written year-over-year. The recognition as a best place to work further highlights a positive internal culture, though macroeconomic challenges could pose risks.

Enact Holdings Reports Strong Q2 2025 Results

Enact Holdings, Inc., headquartered in Raleigh, North Carolina, is a leading provider of private mortgage insurance in the United States, committed to helping individuals achieve homeownership through strategic partnerships with lenders.