📊 ACT Key Takeaways
Is Enact Holdings, Inc. (ACT) a Good Investment?
Enact Holdings demonstrates exceptional financial health with industry-leading profitability metrics, generating a 54.6% net margin and 58.6% free cash flow margin that indicate highly efficient operations. The company maintains a fortress balance sheet with minimal leverage (0.14x debt/equity) and strong cash generation ($724.5M operating cash flow), providing substantial flexibility for shareholder returns and strategic initiatives.
Enact Holdings shows very strong underlying fundamentals, with exceptionally high operating and net margins, solid returns on equity and assets, and strong cash generation relative to revenue. Balance sheet leverage is low and interest coverage is healthy, which supports financial resilience, though the flat net income profile and modest top-line growth suggest the story is more about quality and stability than rapid expansion.
Why Buy Enact Holdings, Inc. Stock? ACT Key Strengths
- Exceptional profitability with 54.6% net margin and 69.5% operating margin, indicating pricing power and operational efficiency
- Strong cash generation with $724.5M operating cash flow and 58.6% FCF margin, demonstrating high-quality earnings
- Conservative capital structure with 0.14x debt/equity ratio and 17.2x interest coverage, providing financial flexibility
- Solid ROE of 12.6% and ROA of 9.8% indicate effective capital deployment
- Modest revenue growth of 2.8% YoY suggests stable, predictable business model
- Exceptional profitability, with 69.5% operating margin and 54.6% net margin
- Strong financial health, supported by low debt-to-equity of 0.14x and 17.2x interest coverage
- High-quality cash generation, with $724.52M operating cash flow and 58.6% free cash flow margin
ACT Stock Risks: Enact Holdings, Inc. Investment Risks
- Modest revenue growth of 2.8% YoY indicates limited top-line expansion in a mature insurance services market
- Flat net income growth (0.0% YoY) despite revenue growth suggests margin compression or increased operating expenses
- Significant insider trading activity (29 Form 4 filings in 90 days) warrants monitoring for potential strategic concerns
- Insurance sector inherent volatility and claims exposure could impact earnings quality
- Limited visibility into competitive positioning and market share trends from available metrics
- Growth is modest, with revenue up only 2.8% and net income essentially flat year over year
- Insurance earnings can be pressured by adverse loss trends, reserve development, or changes in credit performance
- Profitability may be sensitive to regulatory changes, competitive pricing, and housing or mortgage market weakness
Key Metrics to Watch
- Net income growth trajectory and margin sustainability
- Revenue growth acceleration and market share trends
- Free cash flow conversion and capital allocation decisions
- Debt/equity ratio and interest coverage maintenance
- Operating margin stability amid competitive pressures
- Net income and operating margin trend
- Operating cash flow and return on equity
Enact Holdings, Inc. (ACT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 58.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ACT Profit Margin, ROE & Profitability Analysis
ACT vs Finance Sector: How Enact Holdings, Inc. Compares
How Enact Holdings, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Enact Holdings, Inc. Stock Overvalued? ACT Valuation Analysis 2026
Based on fundamental analysis, Enact Holdings, Inc. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Enact Holdings, Inc. Balance Sheet: ACT Debt, Cash & Liquidity
ACT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Enact Holdings, Inc.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.11 reflects profitable operations.
ACT Revenue Growth, EPS Growth & YoY Performance
ACT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $309.6M | $163.5M | $1.10 |
| Q2 2025 | $298.8M | $167.8M | $1.11 |
| Q1 2025 | $291.6M | $161.0M | $1.01 |
| Q3 2024 | $299.0M | $164.2M | $1.02 |
| Q2 2024 | $277.5M | $168.0M | $1.04 |
| Q1 2024 | $280.9M | $161.0M | $1.01 |
| Q3 2023 | $275.1M | $164.2M | $1.02 |
| Q2 2023 | $273.5M | $168.0M | $1.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Enact Holdings, Inc. Dividends, Buybacks & Capital Allocation
ACT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Enact Holdings, Inc. (CIK: 0001823529)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACT
What is the AI rating for ACT?
Enact Holdings, Inc. (ACT) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACT's key strengths?
Claude: Exceptional profitability with 54.6% net margin and 69.5% operating margin, indicating pricing power and operational efficiency. Strong cash generation with $724.5M operating cash flow and 58.6% FCF margin, demonstrating high-quality earnings. ChatGPT: Exceptional profitability, with 69.5% operating margin and 54.6% net margin. Strong financial health, supported by low debt-to-equity of 0.14x and 17.2x interest coverage.
What are the risks of investing in ACT?
Claude: Modest revenue growth of 2.8% YoY indicates limited top-line expansion in a mature insurance services market. Flat net income growth (0.0% YoY) despite revenue growth suggests margin compression or increased operating expenses. ChatGPT: Growth is modest, with revenue up only 2.8% and net income essentially flat year over year. Insurance earnings can be pressured by adverse loss trends, reserve development, or changes in credit performance.
What is ACT's revenue and growth?
Enact Holdings, Inc. reported revenue of $1.2B.
Does ACT pay dividends?
Enact Holdings, Inc. pays dividends, with $120.8M distributed to shareholders in the trailing twelve months.
Where can I find ACT SEC filings?
Official SEC filings for Enact Holdings, Inc. (CIK: 0001823529) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACT's EPS?
Enact Holdings, Inc. has a diluted EPS of $4.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Enact Holdings, Inc. has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ACT stock overvalued or undervalued?
Valuation metrics for ACT: ROE of 12.6% (sector avg: 12%), net margin of 54.6% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy ACT stock in 2026?
Our dual AI analysis gives Enact Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ACT's free cash flow?
Enact Holdings, Inc.'s operating cash flow is $724.5M, with capital expenditures of N/A. FCF margin is 58.6%.
How does ACT compare to other Finance stocks?
Vs Finance sector averages: Net margin 54.6% (avg: 25%), ROE 12.6% (avg: 12%), current ratio N/A (avg: 1.2).