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ACT (Enact Holdings) Beneish M-Score : 48.35 (As of Jun. 26, 2025)


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What is Enact Holdings Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 48.35 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Enact Holdings's Beneish M-Score or its related term are showing as below:

ACT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.57   Med: -2.22   Max: 48.35
Current: 48.35

During the past 6 years, the highest Beneish M-Score of Enact Holdings was 48.35. The lowest was -2.57. And the median was -2.22.


Enact Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Enact Holdings for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1268+0.528 * 1+0.404 * 1+0.892 * 1.0442+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.000323-0.327 * -153.9703
=48.35

* 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.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $53 Mil.
Revenue was $1,205 Mil.
Gross Profit was $1,205 Mil.
Total Current Assets was $0 Mil.
Total Assets was $6,522 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $743 Mil.
Net Income was $688 Mil.
Gross Profit was $4 Mil.
Cash Flow from Operations was $686 Mil.
Total Receivables was $45 Mil.
Revenue was $1,154 Mil.
Gross Profit was $1,154 Mil.
Total Current Assets was $0 Mil.
Total Assets was $6,190 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $-5 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(53.031 / 1204.689) / (45.07 / 1153.686)
=0.04402 / 0.039066
=1.1268

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1153.686 / 1153.686) / (1204.689 / 1204.689)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 0) / 6521.531) / (1 - (0 + 0) / 6190.473)
=1 / 1
=1

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1204.689 / 1153.686
=1.0442

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0 / (0 + 0)) / (0 / (0 + 0))
= /
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 1204.689) / (0 / 1153.686)
=0 / 0
=1

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((743.05 + 0) / 6521.531) / ((-4.584 + 0) / 6190.473)
=0.113938 / -0.00074
=-153.9703

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(688.068 - 3.913 - 686.262) / 6521.531
=-0.000323

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Enact Holdings has a M-score of 48.35 signals that the company is likely to be a manipulator.


Enact Holdings Beneish M-Score Related Terms

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Enact Holdings Business Description

Traded in Other Exchanges
N/A
Address
8325 Six Forks Road, Raleigh, NC, USA, 27615
Enact Holdings Inc is a private mortgage insurance company serving the United States housing finance market. The principal mortgage insurance customers are originators of residential mortgage loans who determine which mortgage insurer or insurers will be used for the placement of mortgage insurance written on loans originated. The company is engaged in writing and assuming residential mortgage guaranty insurance.
Executives
James Mcmullen officer: Controller C/O GENWORTH MORTGAGE HOLDINGS, INC., 8325 SIX FORKS ROAD, RALEIGH NC 27615
Genworth Holdings, Inc. 10 percent owner 6620 WEST BROAD STREET, RICHMOND VA 23230
Brian Gould officer: EVP & Chief Operations Officer 8325 SIX FORKS ROAD, RALEIGH NC 27615
Evan Stolove officer: EVP, Gen. Counsel & Secretary 8325 SIX FORKS ROAD, RALEIGH NC 27615
Michael Derstine officer: EVP and Chief Risk Officer 8325 SIX FORKS ROAD, RALEIGH NC 27615
Rohit Gupta director, officer: President and CEO C/O GENWORTH FINANCIAL, INC., 6620 WEST BROAD STREET, RICHMOND VA 23230
Jerome T Upton director GENWORTH FINANCIAL, INC., 6620 WEST BROAD STREET, RICHMOND VA 23230
Michael A Bless director C/O ROCKWELL INTERNATIONAL INC, 777 E. WISCONSIN AVE #1400, MILWAUKEE WI 53202
Sheehan Daniel J Iv director 6620 WEST BROAD STREET, RICHMOND VA 23230
Hardin Dean Mitchell officer: EVP, CFO and Treasurer 8325 SIX FORKS ROAD, RALEIGH NC 27615
Anne G Waleski director 1508 WEST AVENUE, RICHMOND VA 23220
Westley V Thompson director THE PHOENIX COMPANIES, INC., ONE AMERICAN ROW, HARTFORD CT 06102
Debra Still director 520 MADISON AVE, 32ND FL, C/O CHIMERA INVESTMENT CORPORATION, NEW YORK NY 10022
John D Fisk director C/O AGNC INVESTMENT CORP., 7373 WISCONSIN AVENUE, 22ND FLOOR, BETHESDA MD 20814
Restrepo Robert P Jr director