Enact Holdings ACT
United StatesFinancial Services · Insurance - SpecialtyUSD
50.20 USD (+9.6%)
5 analysts
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Enact Holdings is a private mortgage insurer in the U.S. that protects lenders against borrower default, charging premiums for its policies.
Key points
from its scores- ✓High-quality business9.8
- ✓Good share-price trend9.1
- ✓Favourable backdrop7.9
- !Modest dividend5.5
AI analysis
bottom line, main risk, context and newsHold or buy on pullbacks, given its solid balance sheet, high profitability, and reasonable valuation, while monitoring the mortgage market and regulatory changes.
Enact Holdings shows solid financial health (ROE 12.87%, ROA 8.35%) and exceptional moat quality (operating margin 73.26%), with an attractive valuation (P/E 9.67, adjusted P/B 0.91) and strong momentum (42.61% over 12 months). The business is well positioned, although its exposure to the mortgage cycle and regulation are the main risks to watch.
The main risk is exposure to the U.S. housing and credit cycle: a recession or an increase in mortgage delinquencies could raise claims and erode results, despite the current strength of the balance sheet.
Context and risks
Enact Holdings operates in the highly regulated U.S. private mortgage insurance (MI) sector. Its activity is subject to PMIERs oversight and potential FHFA intervention, which can alter capital requirements and market conditions. Additionally, its exposure to the housing cycle and potential tightening of credit conditions represents a business model risk not captured by current financial metrics.
Is Enact Holdings stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 33% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 9.7 | 13.7 | −30% |
| Price / book | 1.2 | 1.9 | −37% |
| Price / sales | 5.0 | 3.5 | +46% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.1 out of 10 (median for Financial Services: 5.2).
Average analyst target: 50.20 USD, +9.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.1 (sector 5.5), Growth 6.0 (sector 6.9).
Classic formulas with standard assumptions (6.6% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 9.7
- Forward P/E
- 9.1
- Price / book
- 1.2
- Price / sales
- 5.0
- PEG
- 0.72
- Market cap
- 6.3B USD
- Enterprise value
- 6.5B USD
Profitability
- ROE
- 12.9%
- ROA
- 8.4%
- ROIC (approx.)
- 15.0%
- Gross margin
- 73.2%
- Operating margin
- 73.3%
- Net margin
- 54.5%
- Free cash flow
- 521.5M USD
- FCF yield
- 8.3%
Solvency
- Total debt
- 745.2M USD
- Net debt
- 247.7M USD
- Cash
- 497.6M USD
- Debt / equity
- 13.81
- Current ratio
- 0.92
- Quick ratio
- 0.83
Growth
- Revenue growth
- +4.1%
- Earnings growth
- +12.6%
- EPS (TTM)
- 4.74 USD
- EPS (forward)
- 5.05 USD
Dividend
- Dividend yield
- 2.1%
- Payout
- 18.4%
Risk and market
- Beta
- 0.47
- Analyst consensus
- none (5)
- Target price
- 50.20 USD
- 52-week range
- 34.64 – 50.56
Recent news
All ACT news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Enact Holdings
Is Enact Holdings stock cheap or expensive?
On P/E and Price / book, it trades 33% below the Financial Services median on average. Valuation score: 7.1 out of 10 (median for Financial Services: 5.2). Average analyst target: 50.20 USD, +9.6% versus the price. This is not investment advice.
What score does Enact Holdings get on MeridIAn Screener?
It scores 7.6 out of 10, rank 31 of 2,130 (better than 98% of the companies analysed). Its strongest category is Quality / Moat (9.8) and its weakest, Dividend (5.5). Analysis of 08/10/2026.
What is Enact Holdings's P/E ratio?
Its P/E is 9.7: the share price equals 9.7 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 9.1.
How much is Enact Holdings worth on the stock market?
Its market capitalisation is 6.3B USD.
Does Enact Holdings pay a dividend?
Yes: its dividend yield is 2.10% and it pays out 18% of its earnings.
How has Enact Holdings stock performed over the last year?
It has risen 32.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 34.64 and 50.56 USD. Past performance does not guarantee future results.
What do analysts think of Enact Holdings?
5 analysts cover it; their average recommendation is “none” and their average target is 50.20 USD (+9.6% versus the price). It is an estimate, not market data.