ACT

Enact HoldingsNasdaqGS:ACT Stock Report

Market Cap

US$3.5b

7D

6.6%

1Y

n/a

Updated

18 Oct, 2021

Data

Company Financials +
ACT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance1/6
Financial Health1/6
Dividends0/6

ACT Overview

Enact Holdings, Inc. operates as a private mortgage insurance company in the United States.

Enact Holdings Competitors

MGIC Investment

NYSE:MTG

US$5.6b

Essent Group

NYSE:ESNT

US$5.5b

Radian Group

NYSE:RDN

US$4.5b

NMI Holdings

NasdaqGM:NMIH

US$2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Enact Holdings
Historical stock prices
Current Share PriceUS$21.79
52 Week HighUS$19.25
52 Week LowUS$22.22
Beta0
1 Month Change8.95%
3 Month Changen/a
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO6.35%

Recent News & Updates

Shareholder Returns

ACTUS MortgageUS Market
7D6.6%4.5%2.0%
1Yn/a15.9%27.6%

Return vs Industry: Insufficient data to determine how ACT performed against the US Mortgage industry.

Return vs Market: Insufficient data to determine how ACT performed against the US Market.

Price Volatility

Is ACT's price volatile compared to industry and market?
ACT volatility
ACT Beta0
Industry Beta1.1
Market Beta1

Stable Share Price: Insufficient data to determine ACT's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine ACT's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1981500Rohit Guptahttps://new.mortgageinsurance.genworth.com

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.

Enact Holdings Fundamentals Summary

How do Enact Holdings's earnings and revenue compare to its market cap?
ACT fundamental statistics
Market CapUS$3.55b
Earnings (TTM)US$485.14m
Revenue (TTM)US$1.13b

7.3x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACT income statement (TTM)
RevenueUS$1.13b
Cost of RevenueUS$472.91m
Gross ProfitUS$661.64m
ExpensesUS$176.50m
EarningsUS$485.14m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)2.98
Gross Margin58.32%
Net Profit Margin42.76%
Debt/Equity Ratio18.1%

How did ACT perform over the long term?

See historical performance and comparison

Valuation

Is Enact Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACT ($21.56) is trading below our estimate of fair value ($78.38)

Significantly Below Fair Value: ACT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACT is good value based on its PE Ratio (7.2x) compared to the US Mortgage industry average (12.4x).

PE vs Market: ACT is good value based on its PE Ratio (7.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ACT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ACT is good value based on its PB Ratio (0.9x) compared to the US Mortgage industry average (1.1x).


Future Growth

How is Enact Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACT's forecast earnings growth (5.3% per year) is above the savings rate (2%).

Earnings vs Market: ACT's earnings (5.3% per year) are forecast to grow slower than the US market (15.1% per year).

High Growth Earnings: ACT's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACT's revenue (1.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ACT's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACT's Return on Equity is forecast to be low in 3 years time (12.3%).


Past Performance

How has Enact Holdings performed over the past 5 years?

-5.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ACT has high quality earnings.

Growing Profit Margin: ACT's current net profit margins (42.8%) are lower than last year (48.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ACT's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: ACT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACT had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Mortgage industry average (34%).


Return on Equity

High ROE: ACT's Return on Equity (11.9%) is considered low.


Financial Health

How is Enact Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: ACT's Assets to Equity ratio (1.4x) is low.

Allowance for Bad Loans: Insufficient data to determine if ACT has a sufficient allowance for bad loans.

Low Risk Liabilities: ACT reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if ACT has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: ACT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if ACT has an appropriate level of bad loans.


Dividend

What is Enact Holdings's current dividend yield, its reliability and sustainability?

6.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ACT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average management tenure


CEO

Rohit Gupta (46 yo)

8.58yrs

Tenure

US$4,054,365

Compensation

Mr. Rohit Gupta is President and Chief Executive Officer at Enact Holdings Inc. since March 2013 and had been its Chairman of the Board from July 2020 to May 2021. He joined Genworth Mortgage Insurance in...


CEO Compensation Analysis

Compensation vs Market: Rohit's total compensation ($USD4.05M) is about average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Insufficient data to compare Rohit's compensation with company performance.


Leadership Team

Experienced Management: ACT's management team is seasoned and experienced (8.6 years average tenure).


Board Members

Experienced Board: ACT's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ACT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: ACT only recently listed within the past 12 months.


Top Shareholders

Company Information

Enact Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Enact Holdings, Inc.
  • Ticker: ACT
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$3.548b
  • Shares outstanding: 162.84m
  • Website: https://new.mortgageinsurance.genworth.com

Number of Employees


Location

  • Enact Holdings, Inc.
  • 8325 Six Forks Road
  • Raleigh
  • North Carolina
  • 27615
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 23:07
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.