Enact HoldingsACT +1.31%77 Interest Coverage is 18.25 as of Mar. 2026, which is 0% above its 10-year median of 18.19. GuruFocus rates ACT with a GF Score™ of 77/100 and a GF Value™ of $38.39 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 351 Insurance companies, Enact Holdings ranks better than 51.85% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Enact Holdings's
EBIT
for the
three
months ended in Mar. 2026 was $226 Mil. Enact Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-12 Mil.
Enact Holdings's interest coverage for the quarter that ended in Mar. 2026 was 18.25.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Enact Holdings's Interest Coverage or its related term are showing as below:
ACT'
s Interest Coverage Range Over the Past 10 Years
Min: 14.63 Med: 18.19 Max: No Debt
Current: 18.21
ACT's Interest Coverage is ranked better than 51.85% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs ACT: 18.21
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Enact Holdings Interest Coverage Related Terms
Enact Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Enact Holdings's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ACT vs ESNT, MTG, FAF: Interest Coverage Comparison
For the Insurance - Specialty subindustry, Enact Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Enact Holdings Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Enact Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Enact Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enact Holdings (ACT) has a Interest Coverage of 18.25 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Enact Holdings and its competitors. This is near median its historical median of 18.19. Over the past decade, Enact Holdings' Interest Coverage has ranged from 14.63 to 10,000.00. According to the industry distribution chart, Enact Holdings ranks #169 out of 351 companies in the Insurance industry, placing it in the top 48.1%.
Is Enact Holdings' Interest Coverage too high?
Enact Holdings' current Interest Coverage of 18.25 is near median its 10-year median of 18.19. Over the past 10 years, this metric has ranged from a low of 14.63 to a high of 10,000.00. The Insurance industry median Interest Coverage is 16.23. Enact Holdings' value of 18.25 is 12.4% above this industry median. Based on the distribution chart, Enact Holdings ranks #169 out of 351 companies in the Insurance industry, which is above the industry midpoint. Overall, Enact Holdings has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Enact Holdings' Interest Coverage compare to ESNT and MTG?
According to the Insurance industry distribution chart, Enact Holdings ranks #169 out of 351 companies for Interest Coverage. This puts Enact Holdings in the upper half of its industry. The industry median Interest Coverage is 16.23. Enact Holdings' value of 18.25 is 12.4% above this benchmark. Historically, Enact Holdings' own Interest Coverage has ranged from 14.63 to 10,000.00 over the past decade. While the company's 10-year median is 18.19 vs. the industry median of 16.23, Enact Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Enact Holdings's current Interest Coverage of 18.25 is 12.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Enact Holdings and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enact Holdings's current Interest Coverage is 18.25, which is near median its own 10-year median of 18.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enact Holdings stock overvalued right now?
Based on GuruFocus' analysis, Enact Holdings (ACT) is currently considered Modestly Overvalued. The stock's GF Value™ is $38.39, compared to a current price of $44.83 — trading 16.8% above its estimated fair value. The current Interest Coverage is 18.25, which is near median its 10-year median of 18.19 and 12.4% above the Insurance industry median of 16.23. Enact Holdings' overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Enact Holdings (ACT), the current Interest Coverage is 18.25 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Enact Holdings (ACT) Overvalued in 2026?
Based on GuruFocus' analysis, Enact Holdings stock appears to be overvalued.
The current stock price of $44.83 is trading 16.8% above its estimated GF Value™ of $38.39.
GuruFocus considers Enact Holdings to be Modestly Overvalued.
Key valuation signals for ACT:
Interest Coverage: 18.25 (near median its 10-year median of 18.19)
GF Value™: $38.39 vs. price of $44.83 (16.8% above fair value)
Industry Position: 12.4% above the Insurance median (#169 of 351)
No single metric tells the full story. See the ACT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Enact Holdings Inc is a private mortgage insurance company serving the United States housing finance market. The company operates in a single reportable segment namely Mortgage Insurance The principal mortgage insurance customers are originators of residential mortgage loans that determines the mortgage insurer or insurers to be used for the placement of mortgage insurance written on loans originated. The company is engaged in writing and assuming residential mortgage guaranty insurance.
77GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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