ACT Enact Holdings, Inc. - Fundamental Analysis
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ACT Stock | Fundamental Analysis & Investment Insights
NASDAQ
Financial Services
Insurance - Specialty
Current Price
Live
$41.43
Analyst Target
$45.6
+10.1%
Upside
52W High
$44.8
52W Low
$31.28
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 21, 2026
Market cap
$6.11B
P/E
9.17
ROE
13.0%
Profit margin
54.6%
Debt/Equity
0.14
Dividend yield
2.02%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
ACT's Piotroski F-Score of 2/9 indicates weak financial health, signaling potential distress risks despite strong profitability metrics. The company trades below its Graham Number ($61.44) and intrinsic value ($133.34), suggesting undervaluation on a defensive basis, but this is offset by a bearish insider sentiment and technical trend. While earnings growth and margin resilience are impressive, the lack of Altman Z-Score and minimal revenue growth raise concerns about long-term sustainability. Analysts show no consensus, and the stock remains underperforming its 52-week high.
Key Strengths
Exceptionally high profit margins (54.56% net, 75.33% operating) indicate strong pricing power and cost control
Low debt/equity ratio (0.14) and healthy current/quick ratios suggest strong balance sheet liquidity
Consistent earnings beat rate (75% over last 4 quarters) with positive average surprise (+5.57%)
Trading below Graham Number ($61.44) and intrinsic value ($133.34), indicating potential undervaluation
Low payout ratio (18.03%) and stable dividend yield (2.02%) provide room for future dividend growth
Key Risks
Piotroski F-Score of 2/9 is critically low, indicating poor financial health and high risk of deterioration
Bearish insider activity with $164.91M in sales over 6 months, particularly from major shareholders
Technical trend score of 10/100 reflects strong bearish momentum and weak price action
Revenue growth of only 3.60% YoY is sluggish compared to sector average (30.29%) and peers
No Altman Z-Score available, but the low Piotroski score raises red flags about bankruptcy risk
AI Fair Value Estimate
Based on comprehensive analysis
$133.34
+221.8% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
54
Moderate
72
52
68
34
45
AI Verdict
neutral
Key drivers: Strong profitability and low leverage, Low Piotroski F-Score and bearish insider activity, Undervaluation relative to intrinsic value, Weak revenue growth and technicals
Confidence
78%
Value
72/100
Ref P/E, PEG, Graham Number
Positives
- Current price ($41.43) is significantly below Graham Number ($61.44)
- Intrinsic value estimate ($133.34) suggests substantial upside potential
- P/E of 9.17 is well below sector average (30.38)
Watchpoints
- No PEG ratio available, limiting growth-adjusted valuation analysis
- Price/Sales of 4.94 is elevated for a low-growth firm
Future
52/100
Ref Growth rates
Positives
- Earnings growth of 15.20% YoY and 8.90% Q/Q suggest momentum
- Consistent EPS beats and positive surprises over 19 quarters
Watchpoints
- Revenue growth of only 3.60% YoY is below sector average
- No forward PEG or clear growth catalysts evident
Past
68/100
Ref Historical trends
Positives
- 19 consecutive quarters of earnings beats with an average surprise of +5.57%
- Strong historical EPS progression with consistent year-over-year improvement
Watchpoints
- Recent 1-week price drop of -4.3% suggests short-term weakness
- 52-week high reached in 2025, with current price below it
Health
34/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Low debt/equity (0.14) and strong current/quick ratios
- High ROE (13.03%) and ROA (8.47%) despite low growth
Watchpoints
- Piotroski F-Score of 2/9 is extremely low, indicating financial distress risk
- No Altman Z-Score available, but low F-Score implies potential bankruptcy risk
Dividend
45/100
Ref Yield, Payout
Positives
- Dividend yield of 2.02% is attractive for a financials stock
- Low payout ratio (18.03%) allows for sustainable or growing dividends
Watchpoints
- Dividend strength score of 35/100 indicates moderate quality
- No 5-year yield history or ex-dividend date provided
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$41.43
Analyst Target
$45.6
Upside/Downside
+10.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ACT and closest competitors.
Updated 2026-02-20
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ACT
Enact Holdings, Inc.
Primary
|
+149.7% | +87.9% | +27.7% | +7.5% | +6.2% | -4.3% |
|
AVAL
Grupo Aval Acciones y Valores S.A.
Peer
|
-3.3% | +123.2% | +108.0% | +59.6% | +9.6% | +8.1% |
|
AUB
Atlantic Union Bankshares Corporation
Peer
|
+28.3% | +15.2% | +10.9% | +20.1% | +6.3% | +1.4% |
|
ABCB
Ameris Bancorp
Peer
|
+96.5% | +75.1% | +26.8% | +21.8% | +5.3% | +0.6% |
|
BMA
Banco Macro S.A.
Peer
|
+868.3% | +446.6% | -7.7% | +34.8% | +6.2% | +4.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
9.17
Forward P/E
8.12
PEG Ratio
N/A
P/B Ratio
1.12
P/S Ratio
4.94
EV/Revenue
4.99
EV/EBITDA
N/A
Market Cap
$6.11B
Profitability
Profit margins and return metrics
Profit Margin
54.56%
Operating Margin
75.33%
Gross Margin
73.54%
ROE
13.03%
ROA
8.47%
Growth
Revenue and earnings growth rates
Revenue Growth
+3.6%
Earnings Growth
+15.2%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+8.9%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.14
Low debt
Current Ratio
1.03
Good
Quick Ratio
0.95
Poor
Cash/Share
$4.04
Quarterly Earnings History
EPS performance vs analyst estimates
2026-04-29
$N/A
2026-02-03
$1.23
+12.0% surprise
2025-11-05
$1.12
+0.9% surprise
2025-07-30
$1.15
+3.9% surprise
Financial Services Sector Comparison
Comparing ACT against 208 companies in the Financial Services sector
(6 bullish, 111 neutral, 91 bearish)
P/E Ratio
9.17
This Stock
vs
30.39
Sector Avg
-69.8%
(Discount)
Return on Equity (ROE)
13.03%
This Stock
vs
-7.57%
Sector Avg
-272.0%
(Below Avg)
Profit Margin
54.56%
This Stock
vs
83.86%
Sector Avg
-34.9%
(Weaker)
Debt to Equity
0.14
This Stock
vs
1.51
Sector Avg
-90.8%
(Less Debt)
Revenue Growth
3.6%
This Stock
vs
30.29%
Sector Avg
-88.1%
(Slower)
Current Ratio
1.03
This Stock
vs
3.78
Sector Avg
-72.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ACT
Enact Holdings, Inc.
|
NEUTRAL | $6.11B | 9.17 | 13.0% | 54.6% | $41.43 | |
|
AVAL
Grupo Aval Acciones y Valores S.A.
|
BEARISH | $5.58B | 12.65 | 9.2% | 12.3% | $4.68 | |
|
AUB
Atlantic Union Bankshares...
|
NEUTRAL | $5.54B | 19.53 | 6.7% | 22.2% | $38.87 | |
|
ABCB
Ameris Bancorp
|
NEUTRAL | $5.52B | 14.34 | 10.3% | 35.2% | $80.44 | |
|
BMA
Banco Macro S.A.
|
BEARISH | $6.81B | 38.35 | 5.5% | 8.6% | $96.63 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-02-17 | GUPTA ROHIT | Chief Executive Officer | Stock Award | 18,771 | - |
| 2026-02-17 | STOLOVE EVAN | General Counsel | Stock Award | 2,508 | - |
| 2026-02-17 | DERSTINE MICHAEL | Officer | Stock Award | 2,508 | - |
| 2026-02-17 | MCMULLEN JAMES | Officer | Stock Award | 820 | - |
| 2026-02-17 | MITCHELL HARDIN DEAN | Chief Financial Officer | Stock Award | 6,262 | - |
| 2026-02-17 | GOULD BRIAN | Chief Operating Officer | Stock Award | 2,009 | - |
| 2026-02-11 | RESTREPO ROBERT P JR. | Director | Sale | 5,000 | $214,750 |
| 2026-02-09 | GUPTA ROHIT | Chief Executive Officer | Stock Award | 31,762 | - |
| 2026-02-09 | STOLOVE EVAN | General Counsel | Stock Award | 3,170 | - |
| 2026-02-09 | DERSTINE MICHAEL | Officer | Stock Award | 2,981 | - |
| 2026-02-09 | MCMULLEN JAMES | Officer | Stock Award | 967 | - |
| 2026-02-09 | MITCHELL HARDIN DEAN | Chief Financial Officer | Stock Award | 7,095 | - |
| 2026-02-09 | GOULD BRIAN | Chief Operating Officer | Stock Award | 2,609 | - |
| 2026-01-30 | GENWORTH HOLDINGS, INC. | Beneficial Owner of more than 10% of a Class of Security | Sale | 634,953 | $24,995,623 |
| 2025-12-31 | GENWORTH HOLDINGS, INC. | Beneficial Owner of more than 10% of a Class of Security | Sale | 908,673 | $35,863,960 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
NONE
5 analysts
JP Morgan
2026-02-05
Neutral
Neutral
Keefe, Bruyette & Woods
2026-02-05
Market Perform
Market Perform
JP Morgan
2026-01-12
Neutral
Neutral
Keefe, Bruyette & Woods
2025-12-18
Market Perform
Market Perform
JP Morgan
2025-11-07
Neutral
Neutral
Past News Coverage
Recent headlines mentioning ACT from our newsroom.
Newest → oldest
No matching news yet.