MeritValue

Enact Holdings, Inc.

ACTdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

Enact Holdings, Inc. earns about 14% on invested capital, and has bought back 8% of its shares over 5 years. The applicable estimate puts fair value near $46.19 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.12B1$1.1B2$1.15B3$1.2B3$1.24B3
Net income$546.7M4—$665.5M5$688.1M5$674.2M5
Operating cash flow$572.1M6$560.5M7$632M8$686.3M8$724.5M8
Capital expenditure—————
Free cash flow (derived)—————
Total debt$740.4M9$742.8M10$745.4M11$743.1M12$744.5M12
Cash & equivalents$425.8M13$513.8M14$615.7M15$599.4M16$582.5M16
Diluted shares162.9M163.3M161.8M157.6M149.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$358.64
your share of equity
Profit it earned you last year
$45.15
Free cash flow it threw off
—
Debt you’d be carrying
$49.86

10 shares is a claim on $358.64 of net worth that earned you $45.15 last year, against $49.86 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
14% avg · 5y
FY21 13%FY22 17%FY23 15%FY24 14%FY25 13%

It earned an average 14% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−8% shares · 5y

Share count is down 8% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$46.19
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$665.5M
  • growthAssumed0.0%
Graham Number
$60.39
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001823529-24-000036 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001823529-25-000070 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001823529-26-000060 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001823529-22-000038 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001823529-26-000060 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0001823529-24-000036 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0001823529-25-000070 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-12-31 · accession 0001823529-26-000060 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-12-31 · accession 0001823529-23-000035 (LongTermDebt)
  10. 10-K · period ending 2022-12-31 · accession 0001823529-24-000036 (LongTermDebt)
  11. 10-K · period ending 2023-12-31 · accession 0001823529-25-000070 (LongTermDebt)
  12. 10-K · period ending 2024-12-31 · accession 0001823529-26-000060 (LongTermDebt)
  13. 10-K · period ending 2021-12-31 · accession 0001823529-23-000035 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001823529-24-000036 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001823529-25-000070 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001823529-26-000060 (CashAndCashEquivalentsAtCarryingValue)