Fundamentals snapshot
ACT · NMS · Financial Services · Insurance - Specialty
Current price
$48.48
52-week range
$34.64 - $50.56
Market cap
$6.67B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $247.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Enact Holdings provides insurance for mortgage lenders to protect them if a homeowner can't make their payments, mainly earning money from the fees charged for this insurance. This matters because it helps more people buy homes by reducing risk for banks.
Enact Holdings, Inc. wasn't always known by its current name. It was formerly Genworth Mortgage Holdings, Inc., and it officially changed its name in May 2021. The company has a history dating back to 1981, and it's headquartered in Raleigh, North Carolina. Enact Holdings, Inc. operates as a subsidiary of Genworth Holdings Inc., meaning its parent company has a controlling stake in its operations.
Enact Holdings, Inc. is a private mortgage insurance company. Think of it like an insurance policy for lenders who provide home loans. If a homeowner can't make their mortgage payments, the mortgage insurance company steps in to cover a portion of the lender's loss. This allows lenders to offer mortgages to a wider range of borrowers, including those who might not have a large down payment.
This is the core business of Enact Holdings. The company writes and assumes residential mortgage guaranty insurance. This means they provide insurance policies that protect lenders against losses if a borrower defaults on their mortgage. These policies are typically for prime-based, individually underwritten residential mortgage loans, meaning loans that meet certain quality standards and have been carefully reviewed. Enact serves a variety of clients, including large banks, smaller community banks, and credit unions.
Beyond insuring individual loans, Enact also offers pool mortgage insurance. This type of insurance covers a group, or 'pool,' of mortgage loans rather than just one. It's a way for lenders to get protection on a larger portfolio of their mortgage assets, offering a broader safety net for their lending activities.
In addition to its core insurance products, Enact Holdings provides related services. This includes contract underwriting services, where they assess the risk of mortgage applications on behalf of lenders. They also offer mortgage-related reinsurance products, which is essentially insurance for insurance companies, allowing them to transfer some of their risk to other parties.
While specific current strategic priorities for Enact Holdings aren't detailed in the provided information, as a mortgage insurer, management is likely focused on prudent risk management and maintaining strong relationships with lenders. Their success hinges on accurately assessing the risk of the mortgages they insure and ensuring they have adequate capital to cover potential claims. Growth likely comes from expanding their customer base among banks and other lending institutions and potentially developing new insurance products to meet evolving market needs.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $247.7M. Interest coverage 18.2x.
Enact Holdings, Inc.'s profit covers its interest bill about 18.2 times over.
Total debt $745.23M Interest coverage 18.19x This is the baseline the peer rows are being compared against.
Total debt $646.87M Interest coverage 27.08x +49% vs ACT Carries about 1.5x more debt cushion than ACT.
Total debt $495.97M Interest coverage 26.14x +44% vs ACT Carries about 1.4x more debt cushion than ACT.
Total debt $1.34B Interest coverage 12.67x -30% vs ACT Carries about 1.4x less debt cushion than ACT.
Total debt $426.15M Interest coverage 18.55x +2% vs ACT Has roughly the same debt cushion as ACT.
Total debt $4.29B Interest coverage 34.64x +90% vs ACT Carries about 1.9x more debt cushion than ACT.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know