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GMA

Genworth Mortgage Insurance Australia ASX:GMA Stock Report

Last Price

AU$2.96

Market Cap

AU$1.2b

7D

-2.3%

1Y

4.2%

Updated

26 May, 2022

Data

Company Financials +
GMA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health1/6
Dividends3/6

GMA Stock Overview

Genworth Mortgage Insurance Australia Limited, together with its subsidiaries, engages in the loan mortgage insurance business in Australia.

Genworth Mortgage Insurance Australia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Genworth Mortgage Insurance Australia
Historical stock prices
Current Share PriceAU$2.96
52 Week HighAU$3.19
52 Week LowAU$1.98
Beta1.24
1 Month Change-2.63%
3 Month Change1.02%
1 Year Change4.23%
3 Year Change9.63%
5 Year Change4.97%
Change since IPO-15.59%

Recent News & Updates

May 17
Revenue Downgrade: Here's What Analysts Forecast For Genworth Mortgage Insurance Australia Limited (ASX:GMA)

Revenue Downgrade: Here's What Analysts Forecast For Genworth Mortgage Insurance Australia Limited (ASX:GMA)

The latest analyst coverage could presage a bad day for Genworth Mortgage Insurance Australia Limited ( ASX:GMA ), with...

Shareholder Returns

GMAAU MortgageAU Market
7D-2.3%-1.3%-0.4%
1Y4.2%3.2%-1.1%

Return vs Industry: GMA exceeded the Australian Mortgage industry which returned 3.2% over the past year.

Return vs Market: GMA exceeded the Australian Market which returned -1.1% over the past year.

Price Volatility

Is GMA's price volatile compared to industry and market?
GMA volatility
GMA Average Weekly Movement4.8%
Mortgage Industry Average Movement4.4%
Market Average Movement9.3%
10% most volatile stocks in AU Market16.4%
10% least volatile stocks in AU Market4.2%

Stable Share Price: GMA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GMA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1965209Pauline Blight-Johnstonhttps://www.genworth.com.au

Genworth Mortgage Insurance Australia Limited, together with its subsidiaries, engages in the loan mortgage insurance business in Australia. The company facilitates residential mortgage lending by transferring risk from lenders to lenders mortgage insurance (LMI) providers, primarily for high loan to value ratio residential mortgage loans. It offers LMI through flow and portfolio basis.

Genworth Mortgage Insurance Australia Fundamentals Summary

How do Genworth Mortgage Insurance Australia's earnings and revenue compare to its market cap?
GMA fundamental statistics
Market CapAU$1.16b
Earnings (TTM)AU$192.82m
Revenue (TTM)AU$359.95m

6.0x

P/E Ratio

0.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GMA income statement (TTM)
RevenueAU$359.95m
Cost of RevenueAU$75.92m
Gross ProfitAU$284.03m
Other ExpensesAU$91.21m
EarningsAU$192.82m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.49
Gross Margin78.91%
Net Profit Margin53.57%
Debt/Equity Ratio12.1%

How did GMA perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

36%

Payout Ratio
New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Genworth Mortgage Insurance Australia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-11.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMA's earnings are forecast to decline over the next 3 years (-11.2% per year).

Earnings vs Market: GMA's earnings are forecast to decline over the next 3 years (-11.2% per year).

High Growth Earnings: GMA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GMA's revenue (6.7% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: GMA's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GMA's Return on Equity is forecast to be low in 3 years time (8.4%).


Past Performance

How has Genworth Mortgage Insurance Australia performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-28.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GMA has high quality earnings.

Growing Profit Margin: GMA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GMA's earnings have declined by 28.9% per year over the past 5 years.

Accelerating Growth: GMA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GMA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage industry (9.4%).


Return on Equity

High ROE: GMA's Return on Equity (12.4%) is considered low.


Financial Health

How is Genworth Mortgage Insurance Australia's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

1/6

Financial Health Score 1/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: GMA's Assets to Equity ratio (2.5x) is low.

Allowance for Bad Loans: Insufficient data to determine if GMA has a sufficient allowance for bad loans.

Low Risk Liabilities: GMA reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if GMA has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: GMA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if GMA has an appropriate level of bad loans.


Dividend

What is Genworth Mortgage Insurance Australia current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GMA's dividend (5.74%) is higher than the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: GMA's dividend (5.74%) is low compared to the top 25% of dividend payers in the Australian market (6.23%).


Stability and Growth of Payments

Stable Dividend: GMA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GMA's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.4%), GMA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GMA's dividends in 3 years are forecast to be covered by earnings (64.5% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Pauline Blight-Johnston

2.17yrs

Tenure

AU$1,962,164

Compensation

Ms. Pauline Blight-Johnston has been Chief Executive Officer, Managing Director and Director of Genworth Mortgage Insurance Australia Ltd. since March 2, 2020. She serves as the Partner, Actuarial and Fina...


CEO Compensation Analysis

Compensation vs Market: Pauline's total compensation ($USD1.39M) is above average for companies of similar size in the Australian market ($USD1.03M).

Compensation vs Earnings: Pauline's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GMA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: GMA's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GMA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Genworth Mortgage Insurance Australia Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Genworth Mortgage Insurance Australia Limited
  • Ticker: GMA
  • Exchange: ASX
  • Founded: 1965
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: AU$1.163b
  • Shares outstanding: 390.13m
  • Website: https://www.genworth.com.au

Number of Employees


Location

  • Genworth Mortgage Insurance Australia Limited
  • 101 Miller Street
  • Level 26
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/26 00:00
End of Day Share Price2022/05/26 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.