Enact Holdings, Inc. (ACT) Fundamental Analysis: Bull vs. Bear Case

ACT

Enact Holdings, Inc.

Fundamental data last updated:June 7, 2026

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company profile

SECTOR

Financial Services

industry

Insurance - Specialty

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/29/2026

Business Summary

Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company is involved in writing and assuming residential mortgage guaranty insurance. It offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and contract underwriting services for mortgage lenders. The company was formerly known as Genworth Mortgage Holdings, Inc. and changed its name to Enact Holdings, Inc. in May 2021. Enact Holdings, Inc. was founded in 1981 and is headquartered in Raleigh, North Carolina. Enact Holdings, Inc. is a subsidiary of Genworth Holdings, Inc.

VALUATION

P/E

8.82 Market Cap ($M USD)

$5.88B

Forward P/E

8.03 PEG

0.82 PRICE TO SALES

4.74 PRICE TO BOOK

1.12 EV / EBITDA

6.67 5-Year Average P/E

Free Cash Flow Yield

12.28%

DCF Value

$91.39

Graham Number

$63.68

Price to FCF

8.14 EV to FCF

8.42 Earnings Yield

11.34%

FCF Yield

12.28%

DIVIDEND

Yield

2.07%

Annual Payout

$0.87

Payout Ratio

18.12%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.78

Next Year EPS Growth Estimate

$5.24

Next Year Revenue Growth Estimate

$131.28B

Return on Equity (ROE)

12.74%

FREE CASH FLOW

Operating Margin

69.44%

Debt-to-Equity

0.14 Piotroski F-Score

6 Altman Z-Score

3.68 Return on Invested Capital (ROIC)

12.36%

Current Ratio

0.00 Quick Ratio

0.00 Net Debt to EBITDA

0.21 Interest Coverage

17.21 Gross Profit margin

82.11%

FCF PER SHARE

$5.10

REVENUE PER SHARE

$8.75

Gainseekers Quantitative Analysis

Summary

ACT Enact Holdings, Inc. appears to be a compelling deep value play. Recent pricing indicated it traded significantly below its DCF Value and Graham Number, suggesting a market mispricing. The Forward P/E of 8.99 and an Earnings Yield of 10.84% highlight its attractive valuation relative to earnings potential. With an Altman Z-score of 4.81, the company demonstrates robust financial health, indicating low bankruptcy risk and solid growth prospects. This is a stock that seems undervalued by the market’s current standards.

AI Exposure / Tech Reliance

As a player in the Insurance - Specialty industry, ACT Enact Holdings is well-positioned to leverage AI for risk assessment and underwriting efficiencies. The sector's reliance on data analytics provides a natural synergy with AI advancements. This adaptability could enhance their competitive edge in a rapidly evolving tech landscape.

The Bull Case

For the value-driven investor, ACT Enact Holdings offers a compelling narrative. With a ROIC of 12.36%, the company demonstrates strong capital efficiency, converting investments into profitable returns. A Free Cash Flow Yield of 11.74% underscores its ability to generate cash, while a Piotroski F-Score of 6 suggests solid financial health. The impressive operating margin of 69.44% indicates significant pricing power, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, ACT Enact Holdings is not without risks. The Forward PEG ratio of 3.49 raises concerns about growth relative to its valuation, suggesting potential overvaluation in growth expectations. Trading close to its 52-week high, the stock might be technically overextended, posing a risk of correction. Additionally, the Price/Sales ratio of 4.96 could indicate a premium valuation, which may not be justified if growth falters. Investors should tread carefully, mindful of these structural risks.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$45.00

Institutional Ownership %

1-Year Beta

0.50 Insider Buying % (6 Mo)

Distance to 52-Week High

6.39%

Distance to 52-Week Low

19.40%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$42.33

200-DAY SMA

$39.76

⚠️ 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.