ENACT HOLDINGS Reports Second Quarter Earnings for FY2023 on August 1 2023
August 8, 2023
🌥️Earnings Overview
On August 1 2023, ENACT HOLDINGS ($NASDAQ:ACT) released its financial results for the second quarter of the 2023 fiscal year, ending June 30 2023. Their total revenue for the quarter amounted to USD 277.5 million, a 1.5% growth compared to the same period last year, while their reported net income was USD 168.0 million, indicating a 17.9% decrease from the same period in the previous year.
Price History
The stock opened at $27.2 and closed at $27.0, which was a 0.6% decrease from the prior closing price of 27.2. Despite this slight decrease, the company was able to meet their quarterly goals and achieved an overall growth in revenue and net income over the last two quarters. This impressive growth was driven by strong customer acquisition, robust product performance, and effective cost management. Meanwhile, operating costs remained stable compared to the same period last year.
Looking ahead, ENACT HOLDINGS is confident that it can continue to expand its customer base and increase its market share. The company is also focused on technological innovation and strategic investments to ensure that it remains competitive in the sector. With strong fundamentals and a solid business plan, ENACT HOLDINGS is poised for a successful remainder of fiscal year 2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Enact Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 1.11k | 678.8 | 61.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Enact Holdings. More…
| Operations | Investing | Financing |
| 545.95 | -97.08 | -341.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Enact Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.92k | 1.55k | 27.08 |
Key Ratios Snapshot
Some of the financial key ratios for Enact Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.8% | – | 82.7% |
| FCF Margin | ROE | ROA |
| 49.2% | 13.2% | 9.7% |
Analysis
At GoodWhale, we recently conducted an analysis of the fundamentals of ENACT HOLDINGS. Using our Star Chart methodology, we determined that ENACT HOLDINGS is strong in asset, medium in dividend and weak in growth and profitability. This suggests that it is a ‘cow’ type of company with a track record of paying out consistent and sustainable dividends. Given the company’s strong performance in asset and dividends, we believe that ENACT HOLDINGS may be of particular interest to dividend investors looking for steady payouts. The company also has an impressive health score of 8/10, indicating that its cashflows and debt should be sufficient to sustain future operations in times of crisis. All in all, investors interested in a stable and reliable dividend yield should take note of ENACT HOLDINGS. More…
Peers
The mortgage insurance industry is highly competitive, with Enact Holdings Inc competing against Tiptree Inc, NMI Holdings Inc, and MGIC Investment Corp. All four companies offer similar products and services, but Enact Holdings Inc has distinguished itself through its innovative approach to the industry.
– Tiptree Inc ($NASDAQ:TIPT)
Tiptree Inc. is a holding company that invests in businesses in a variety of industries, including insurance, real estate, and hospitality. The company’s insurance subsidiaries include Tiptree Insurance Group, Inc. and Tiptree Financial Group, Inc. Its real estate subsidiaries include Tiptree Realty Partners, LLC. and Tiptree Property Management, LLC. Its hospitality subsidiaries include Tiptree Hospitality Group, LLC. and Tiptree Hotels, LLC.
– NMI Holdings Inc ($NASDAQ:NMIH)
NMI Holdings Inc is a provider of private mortgage insurance in the United States. The company has a market cap of 1.76B as of 2022 and a return on equity of 18.87%. NMI Holdings Inc operates in two segments, Mortgage Insurance and Real Estate. The Mortgage Insurance segment provides primary mortgage insurance on first-lien mortgage loans secured by residential property in the United States. The Real Estate segment acquires, finances, and manages a portfolio of real estate-owned properties.
– MGIC Investment Corp ($NYSE:MTG)
MGIC Investment Corp is a US-based private mortgage insurance company. The company offers mortgage insurance, reinsurance, and financial services to lenders and borrowers in the United States. As of 2022, MGIC had a market capitalization of $3.76 billion and a return on equity of 13.85%. The company offers a variety of mortgage insurance products, including primary, secondary, and portfolio insurance. It also provides reinsurance to other mortgage insurers. In addition, MGIC offers a range of financial services, including loan servicing, loan origination, and loan modification.
Summary
ENACT HOLDINGS reported its FY2023 Q2 earnings on August 1, showing total revenue of USD 277.5 million, a 1.5% YOY increase, and net income of USD 168.0 million, a 17.9% YOY decrease. From an investing perspective, this indicates that ENACT HOLDINGS is experiencing growth in its top line, but is experiencing some difficulty with profitability due to higher operating expenses. Investors should evaluate the company’s underlying growth prospects and potential for margin expansion in order to determine if it is a viable investment opportunity.
Related Posts
Recent Posts
