Enact Holdings (ACT) closed out FY 2025 with Q4 revenue of US$312.7 million and basic EPS of US$1.23, alongside net income of US$177.2 million. This sits against a trailing twelve month revenue base of about US$1.24 billion and EPS of US$4.54. Over recent quarters the company has reported revenue increasing from US$301.8 million in Q4 2024 to US$312.7 million in Q4 2025, while quarterly basic EPS ranged between roughly US$1.06 and US$1.23 across that period. This leaves investors focused on how these earnings interact with margins and the underlying mortgage insurance cycle.

See our full analysis for Enact Holdings.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the prevailing narratives about Enact’s growth, profitability and risk over the past year.

54.6% Net Margin, Slight Step Down From Last Year

• Over the last twelve months, Enact’s net profit margin was 54.6%, compared with 57.3% a year earlier, on trailing revenue of about US$1.24b and net income of US$674.2 million.
• What stands out is how a still high margin fits with a cautious view that earnings are forecast to decline about 0.2% per year, even though:
  • Revenue is expected to grow around 3.6% per year, which is below the cited 10.1% US market forecast, so profits are not assumed to track revenue one for one.
  • Earnings have grown 8.3% per year over the past five years, so the current forecast is more conservative than that longer term record.

To see how this mix of strong margins and softer forecasts fits into the broader story, check the full balanced take in 📊 Read the full Enact Holdings Consensus Narrative..

Valuation Gap: 9.4x P/E And DCF At About US$92.78

• ACT is trading on a trailing P/E of 9.4x versus a US Diversified Financial industry average of 15.5x and a peer average of 8.7x, while the current share price of US$44.07 sits at roughly a 52.5% discount to the provided DCF fair value of about US$92.78.
• Supporters of a more bullish stance often point to this valuation gap, and the recent earnings profile gives them a few data points to work with:
  • Trailing twelve month EPS of about US$4.54 and net income of US$674.2 million show the company earning meaningfully against that P/E label.
  • Revenue over the last year was around US$1.24b, and quarterly revenue across FY 2025 stayed in a tight band of roughly US$304 million to US$313 million, so the DCF fair value is being compared to a fairly steady top line.

Steady FY 2025 EPS Range Against Softer Growth Outlook

• Across FY 2025, basic EPS moved in a relatively narrow range from US$1.09 in Q1 to US$1.23 in Q4, with net income between US$163.5 million and US$177.2 million on quarterly revenue of about US$305 million to US$313 million.
• Skeptical investors focus on how this stability sits next to more cautious expectations for the next few years:
  • Forecasts indicate roughly flat to slightly negative earnings growth at about 0.2% decline per year, even though trailing EPS over the last year is US$4.54.
  • Dividend history is described as unstable and there has been significant insider selling over the past three months, which some investors weigh against the recent consistency in quarterly EPS.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Enact Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Enact’s high margins sit beside cautious earnings forecasts, an unstable dividend history and recent insider selling, which some investors may see as confidence and income headwinds.

If that mix makes you hesitant, you might prefer companies where insiders are recently buying, so check out the screener containing 1747 value stocks with high insider ownership to zero in on value ideas with insider conviction.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.