Enact Holdings, Inc. (ACT)
Financial Services · NMS · US
Fundamentals
Valuation and ratings
Enact Holdings, Inc. trades at USD46.55, which is 115% below the USD99.97 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 72 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 9.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Enact Holdings, Inc.
Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company engages in writing and assuming residential mortgage guaranty insurance. It also offers private mortgage insurance products insuring prime-based, individually underwritten residential mortgage loans; pool mortgage insurance; contract underwriting services; and mortgage-related reinsurance products. The company serves large money center banks, non-bank lenders, national and local mortgage bankers, community banks, and credit unions. The company was formerly known as Genworth Mortgage Holdings, Inc. and changed its name to Enact Holdings, Inc. in May 2021. Enact Holdings, Inc. was founded in 1981 and is headquartered in Raleigh, North Carolina. Enact Holdings, Inc. is a subsidiary of Genworth Holdings Inc.
ACT passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
7 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$40.52M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$20.59M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$9.38M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$4.81M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$3.22M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Enact Holdings, Inc. (ACT) undervalued?
Against our discounted cash flow estimate of USD99.97, ACT at USD46.55 is 115% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ACT?
7 of the institutions we track reported a position in ACT in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ACT's P/E ratio?
ACT trades at 9.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for ACT, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.