Enact Holdings, Inc. (ACT) AI Stock Analysis

Enact Holdings, Inc., headquartered in Raleigh, North Carolina, is a private mortgage insurance company operating in the United States. The company specializes in residential mortgage guaranty insurance, underwriting and assuming risks linked to prime-based, individually underwritten residential mortgage loans. It also delivers contract underwriting services to mortgage lenders to assist throughout loan origination. Established in 1981 and formerly known as Genworth Mortgage Holdings, Inc., it rebranded in May 2021 and operates as a subsidiary of Genworth Holdings, Inc. Enact serves residential mortgage loan originators nationwide, focusing on private mortgage insurance products designed to support homeownership and risk mitigation.

Between FY2021 and FY2025, annual revenue grew from $1.12B to $1.23B, reflecting a 5-year revenue CAGR of 2.1%. Revenue grew 1.2% in FY2021, fell 2.2% in FY2022, and increased 5.4% in FY2023, 4.2% in FY2024, and 2.4% in FY2025. Net income stood at $546.7M in FY2021, reached $704.2M in FY2022, and was $674.2M in FY2025, generating diluted EPS of $4.60. Operating margin was 69.8% in FY2025. Over the trailing twelve months, revenue reached $1.25B with an operating margin of 73.3% and EPS of $4.74. For the latest quarter ended June 30, 2026, quarterly revenue grew 4.1% year-over-year, while quarterly earnings grew 12.6%.

As of June 30, 2026, Enact Holdings reported $6.61B in cash and short-term investments against $744.9M in total debt, resulting in net cash of $5.87B. Total assets stood at $6.96B and shareholders' equity was $5.40B, with a debt-to-equity ratio of 0.14 and a current ratio of 83.68. Operating cash flow reached $724.5M in FY2025, with free cash flow of $724.5M. In FY2025, cash deployment included $382.4M toward share buybacks and $120.8M in dividends paid, contributing to a 5-year share count change of -13.9%.

At $46.28, Enact Holdings trades at a trailing P/E of 9.8x and a forward P/E of 9.2x, below the median of its US-listed Financial Services peers of 12.1x trailing and 10.8x forward. Its price-to-sales multiple is 5.1x, above the peer median of 3.2x, while price-to-book sits at 1.2x. Over the past year, ACT gained 34.9% compared to 16.8% for SPY. Over five years, the stock returned 171.3% versus 83.0% for SPY.

Enact Holdings pays an annual forward dividend of $0.96 per share, providing a 2.07% dividend yield at its last close. The dividend is distributed quarterly, supported by an 18.7% payout ratio. The company has paid dividends for 6 consecutive years, and its most recent ex-dividend date was August 20, 2026.

Wall Street coverage includes 1 Strong Buy, 0 Buys, 4 Holds, and 1 Sell. The mean price target is $49.40, representing 6.7% upside versus the last close of $46.28. Consensus estimates project FY2026 revenue of $1.27B and EPS of $4.85, followed by FY2027 revenue of $1.28B and EPS of $5.03. The company has beaten EPS expectations in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Enact Holdings, Inc. (ACT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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