Enact Holdings Delivers Surprise Earnings and Revenue Growth of 34.15% and 2.81%, Respectively, in Q2 2023
August 9, 2023
☀️Trending News
Enact Holdings ($NASDAQ:ACT), Inc. has delivered a major surprise for investors in the second quarter of 2023, with reported earnings and revenue growth of 34.15% and 2.81%, respectively. Enact Holdings is an innovative technology solutions provider and its products and services help companies to efficiently manage their operations and maximize their potential. The impressive growth is a testament to the company’s commitment to providing superior quality solutions and the team’s dedication to achieving success. Further, the company saw an increase of 34.15% in its net income year-on-year. This was driven primarily by higher sales across its product categories, particularly in the consumer segment. The company’s strong financial performance in Q2 2023 is a result of increased demand for its offerings from both new and existing customers, as well as improved operational efficiency.
Additionally, Enact Holdings has been able to leverage its extensive partner network to reach more customers and expand its market presence. The impressive growth in revenue and earnings validates Enact Holdings’ strategy of providing superior technology solutions to its customers and demonstrates its ability to drive business growth. Investors should keep a close eye on the company’s future performance as it continues to pursue new opportunities and expand its offerings.
Earnings
According to their financial report as of June 30 2021, the company earned a total of 276.12M USD in revenue and 130.81M USD in net income, representing a 0.9% increase in total revenue and a 36.1% decrease in net income compared to the same period in the previous year. The growth demonstrated by ENACT HOLDINGS Inc. over the past 3 years is notable, with total revenue increasing from 276.12M USD to 277.52M USD. These impressive results highlight the company’s commitment to delivering quality products and services to its customers.
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 analyzed the financials of ENACT HOLDINGS and our analysis concluded that their health score is 8/10 with regard to their cashflows and debt. This means that they are in a strong financial position and can ride out any crisis without the risk of bankruptcy. Upon further analysis, we determined that ENACT HOLDINGS is strong in assets, medium in dividends, and weak in growth and profitability. Based on this assessment, we classify ENACT HOLDINGS as a ‘cow’, a type of company that has a track record of consistently paying out sustainable dividends. Given this assessment, we believe that investors who are looking for steady and reliable income may be interested in investing in ENACT HOLDINGS. Additionally, those with a high risk appetite may also be attracted to the medium-level dividend returns on offer from 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, Inc. (ENACT) has seen its stock price increase following the announcement of their financials for the quarter ended June 2023. The company reported a revenue growth of 2.81%, and an impressive 34.15% earnings surprise. This news has been met with enthusiasm from investors, and signals a potential for future growth for the company.
Analysts suggest that investing in ENACT is an attractive option, as the company has demonstrated a commitment to meeting their financial objectives and managing their resources effectively. Investors considering ENACT should be aware of any changes in their financial performance, as well as potential risks associated with investing in the company.
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