ACT Enact Holdings, Inc. - Fundamental Analysis
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ACT Stock | Fundamental Analysis & Investment Insights
NASDAQ
Financial Services
Insurance - Specialty
Current Price
Live
$43.29
Analyst Target
$45.6
+5.3%
Upside
52W High
$44.8
52W Low
$31.28
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 14, 2026
Market cap
$6.39B
P/E
9.66
ROE
13.0%
Profit margin
54.6%
Debt/Equity
0.14
Dividend yield
1.92%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
ACT exhibits strong profitability and earnings growth, with a 54.56% profit margin and 15.2% YoY earnings growth, yet its Piotroski F-Score of 2/9 signals severe financial health concerns, indicating weak operational efficiency and potential distress. The absence of an Altman Z-Score raises red flags for bankruptcy risk, especially given the low F-Score. While the stock trades below its intrinsic value of $132.16 and Graham Number of $61.16, it is currently priced at $43.29, suggesting undervaluation on a fundamental basis. However, bearish insider activity and a technical trend of 10/100 undermine near-term momentum. Analysts maintain a 'hold' recommendation, reflecting cautious optimism.
Key Strengths
Exceptionally high profit margins (54.56%) and operating margins (75.33%) indicate strong pricing power and cost control
Consistent earnings beat rate (3 out of last 4 quarters) with an average surprise of 5.57%
Low debt/equity ratio (0.14) and healthy current/quick ratios suggest strong balance sheet liquidity
Trading below both Graham Number ($61.16) and intrinsic value ($132.16), indicating potential undervaluation
Positive year-over-year earnings growth (15.2%) and strong Q/Q EPS growth (+9.8%) reflect improving profitability
Key Risks
Piotroski F-Score of 2/9 is critically low, indicating severe financial distress signals across multiple operational and financial metrics
No Altman Z-Score available, but the low F-Score raises significant bankruptcy risk concerns in the absence of a formal distress model
Bearish insider sentiment with $188.8M in sales over 6 months, including multiple large sales by major shareholders
Technical trend score of 10/100 indicates strong bearish momentum and lack of upward price momentum
Dividend strength is weak (25/100), with a low yield (1.92%) and minimal payout ratio (18.03%), suggesting limited income appeal
AI Fair Value Estimate
Based on comprehensive analysis
$132.16
+205.3% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
58
Moderate
85
70
78
30
25
AI Verdict
neutral
Key drivers: High profitability and undervaluation offset by weak financial health and bearish sentiment, Strong earnings consistency but poor operational efficiency per Piotroski, Low insider confidence and weak technical momentum
Confidence
78%
Value
85/100
Ref P/E, PEG, Graham Number
Positives
- Current price ($43.29) is significantly below Graham Number ($61.16) and intrinsic value ($132.16)
- P/E of 9.66 is well below sector average (30.52), suggesting deep undervaluation
Watchpoints
- PEG ratio unavailable, limiting growth-adjusted valuation clarity
- Price/Sales of 5.17 is elevated relative to peers, indicating premium valuation on revenue
Future
70/100
Ref Growth rates
Positives
- 15.2% YoY earnings growth and 8.9% Q/Q earnings growth indicate improving profitability
- Recent quarters show consistent EPS beats and positive surprises
Watchpoints
- Revenue growth is modest at 3.60% YoY, lagging sector average (30.31%)
- No forward guidance or PEG ratio to validate growth sustainability
Past
78/100
Ref Historical trends
Positives
- 19 consecutive quarters of earnings beats with an average surprise of 5.57%
- Strong historical EPS progression, including multiple quarters with >20% surprise
Watchpoints
- Declining 52-week high ($44.80) vs current price ($43.29), indicating price stagnation
- Long-term price appreciation (5Y +160.9%) may have already priced in growth
Health
30/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Low debt/equity (0.14) and strong current/quick ratios (1.03, 0.95) indicate liquidity strength
- No reported cash or debt figures, but ratios suggest manageable leverage
Watchpoints
- Piotroski F-Score of 2/9 is extremely weak, indicating poor operational and financial health
- No Altman Z-Score available, but the low F-Score implies high distress risk
Dividend
25/100
Ref Yield, Payout
Positives
- Low payout ratio (18.03%) provides room for future dividend increases
- Stable dividend rate ($0.84) with consistent payment history
Watchpoints
- Dividend yield (1.92%) is below average for financials
- Dividend strength score of 25/100 reflects weak income appeal and low investor interest
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$43.29
Analyst Target
$45.6
Upside/Downside
+5.3%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ACT and closest competitors.
Updated 2026-02-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ACT
Enact Holdings, Inc.
Primary
|
+160.9% | +94.5% | +32.2% | +16.9% | +13.0% | +0.3% |
|
BMA
Banco Macro S.A.
Peer
|
+868.3% | +446.6% | -7.7% | +34.8% | +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% |
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
9.66
Forward P/E
8.49
PEG Ratio
N/A
P/B Ratio
1.17
P/S Ratio
5.17
EV/Revenue
5.18
EV/EBITDA
N/A
Market Cap
$6.39B
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
(5 bullish, 111 neutral, 92 bearish)
P/E Ratio
9.66
This Stock
vs
30.38
Sector Avg
-68.2%
(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 | $6.39B | 9.66 | 13.0% | 54.6% | $43.29 | |
|
BMA
Banco Macro S.A.
|
BEARISH | $6.81B | 38.35 | 5.5% | 8.6% | $96.63 | |
|
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 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 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 |
| 2025-11-28 | GENWORTH HOLDINGS, INC. | Beneficial Owner of more than 10% of a Class of Security | Sale | 878,006 | $32,804,148 |
| 2025-11-19 | RESTREPO ROBERT P JR. | Director | Sale | 10,000 | $373,954 |
| 2025-10-31 | GENWORTH HOLDINGS, INC. | Beneficial Owner of more than 10% of a Class of Security | Sale | 940,819 | $34,051,438 |
| 2025-09-30 | GENWORTH HOLDINGS, INC. | Beneficial Owner of more than 10% of a Class of Security | Sale | 922,169 | $35,362,046 |
| 2025-08-29 | GUPTA ROHIT | Chief Executive Officer | Sale | 32,895 | $1,243,596 |
| 2025-08-29 | GENWORTH HOLDINGS, INC. | Beneficial Owner of more than 10% of a Class of Security | Sale | 648,312 | $24,106,963 |
| 2025-08-19 | DERSTINE MICHAEL | Officer | Gift | 3,500 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
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.