ACT

Enact Holdings Inc.

Fundamental data last updated:October 28, 2026

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company profile

SECTOR

Financial Services

industry

Insurance - Specialty

Exchange

NASDAQ

County of HQ

United States

Next Earnings Date

11/04/2026

Business Summary

ACT Enact Holdings operates with a robust business model centered around specialty insurance. By focusing on niche markets, it generates consistent cash flow through tailored insurance products. The company's competitive moat lies in its deep industry expertise and customer relationships, which foster loyalty and reduce churn. This strategic positioning allows it to maintain pricing power and sustain profitability.

 


VALUATION

P/E

10.04

Market Cap ($M USD)

$6.58B

Forward P/E

9.93

PEG

1.15

PRICE TO SALES

5.26

PRICE TO BOOK

1.24

EV / EBITDA

7.47

5-Year Average P/E

Free Cash Flow Yield

10.95%

DCF Value

$82.28

Graham Number

$65.29

Price to FCF

9.13

EV to FCF

9.55

Earnings Yield

10.23%

FCF Yield

10.95%

DIVIDEND

Yield

1.88%

Annual Payout

$0.90

Payout Ratio

18.22%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.90

Next Year EPS Growth Estimate

$4.82

Next Year Revenue Growth Estimate

$1.27B

Return on Equity (ROE)

12.76%

FREE CASH FLOW

Operating Margin

69.17%

Debt-to-Equity

0.14

Piotroski F-Score

7

Altman Z-Score

5.07

Return on Invested Capital (ROIC)

10.41%

Current Ratio

83.68

Quick Ratio

83.68

Net Debt to EBITDA

0.32

Interest Coverage

17.25

Gross Profit margin

85.87%

FCF PER SHARE

$5.17

REVENUE PER SHARE

$8.98

Gainseekers Quantitative Analysis

Summary

ACT Enact Holdings Inc. appears to be significantly undervalued based on its DCF Value and Graham Number, suggesting a potential mispricing by the market. The Forward P/E of 9.93 and an Earnings Yield of 10.23% indicate a compelling valuation for growth-oriented investors. With an Altman Z-score of 5.07, the company demonstrates robust financial health, reducing the risk of distress. Despite a consensus “Hold” rating, the stock’s fundamentals suggest a more optimistic outlook.

AI Exposure / Tech Reliance

Operating within the insurance specialty industry, ACT Enact Holdings is well-positioned to leverage AI for risk assessment and underwriting efficiencies. The sector's inherent need for data analytics aligns well with AI advancements, potentially enhancing operational resilience. However, the company's adaptation will depend on its willingness to invest in cutting-edge technologies.

The Bull Case

For value and GARP investors, ACT Enact Holdings offers an attractive proposition. With a solid ROIC of 10.41% and a Piotroski F-Score of 7, the company demonstrates strong operational efficiency and financial health. Its Free Cash Flow Yield of 10.95% and impressive operating margin of 69.17% highlight its pricing power and ability to generate cash. These metrics suggest a company that efficiently allocates capital and maintains a competitive edge.

The Bear Case

Despite its strengths, ACT Enact Holdings faces structural risks. The Price/Sales ratio of 5.26 and Price/Book ratio of 1.24 suggest the stock might be overvalued relative to its sales and book value. Additionally, trading just 5.58% below its 52-week high indicates potential technical overextension. Investors should be cautious of these valuation pressures, which could limit upside potential.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$45.00

Institutional Ownership %

1-Year Beta

0.47

Insider Buying % (6 Mo)

Distance to 52-Week High

5.58%

Distance to 52-Week Low

27.67%

EARNINGS SURPRISE %

5.88%

50-DAY SMA

$47.73

200-DAY SMA

$44.12

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.