Enact Holdings: Quality Operator, But Valuations No Longer Discounted
December 24, 2023
🌧️Trending News
Enact Holdings ($NASDAQ:ACT) is a trusted and proven operator in the industry, with a long track record of success. This reliability has helped the company command a healthy premium in the market.
However, investors now find that the opportunity for a discount on the stock has passed. With the stock trading at its current level, investors may be looking for other opportunities where better value can be found. The company has expertise in venture capital, growth capital, and leveraged buyouts. It provides a wide range of services to its clients, such as capital advice, portfolio management, and exit strategies. Enact Holdings has been successful in creating value for its shareholders, with an impressive return on investment over the years. Despite this impressive track record, however, investors now find that the opportunity for a discount on the stock has passed. The company’s consistent performance and strong prospects have ensured that the stock stays at healthy levels in the market. With the stock trading at its current level, investors may be looking for other opportunities where better value can be found.
Stock Price
Enact Holdings, a quality operator in the market, saw its stock dip on Friday. After opening at $29.4, the stock closed the day at $29.2. This indicates that the valuations of the company are no longer discounted by the market and hence, investors are becoming more cautious about investing in the company. It is clear that Enact Holdings has remained a quality operator in the market. Despite this, it is evident that the market is no longer enthusiastic about its prospects and valuations.
This could be due to various factors such as the current market trends, macroeconomic and geopolitical factors, and concerns about the company’s future performance. Therefore, investors should take a closer look at Enact Holdings and consider whether it still has the potential to generate returns, taking into account the current market conditions. By doing so, investors can evaluate whether the stock is still worth investing in or not. 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 |
| 1.13k | 652.01 | 57.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Enact Holdings. More…
| Operations | Investing | Financing |
| 600.42 | -107.71 | -350.5 |
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 |
| 6k | 1.54k | 27.91 |
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% | – | 78.2% |
| FCF Margin | ROE | ROA |
| 52.9% | 12.5% | 9.2% |
Analysis
As an investor, it is important to analyze the fundamentals of a company before making an investment decision. GoodWhale is here to help, as we help investors analyze ENACT HOLDINGS‘s fundamentals. According to our Star Chart, ENACT HOLDINGS is strong in asset, medium in dividend and weak in growth and profitability. Based on this, we classify ENACT HOLDINGS as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Such a company may be interesting to income-oriented investors who are looking for a steady stream of dividends, as well as long-term investors who want to benefit from the company’s strong fundamentals. Moreover, ENACT HOLDINGS has a high health score of 8/10 with regard to its cashflows and debt, making it capable to safely ride out any crisis without the risk of bankruptcy. 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 is a publicly-traded company in the financial services sector. The company has a good track record of operations, however, the discount that investors have seen in the stock in recent times is now gone. With a diversified business model, the company focuses on providing consumer-facing digital products and services as well as technology-driven financial solutions. It is well-positioned to benefit from the increasing demand for digital banking and financial services.
Analysts recommend Enact Holdings for the long-term as it has a strong management team and should be able to capitalize on opportunities in the highly competitive market. The company’s stock currently trades at a premium, and investors should look for further value growth.
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