ASX:GMA

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Genworth Mortgage Insurance Australia

Executive Summary

Genworth Mortgage Insurance Australia Limited, through its subsidiaries, engages in the loan mortgage insurance business in Australia. More Details

Rewards

Trading at 24% below our estimate of its fair value

Earnings are forecast to grow 60.53% per year

Risk Analysis

No risks detected for GMA from our risk checks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Genworth Mortgage Insurance Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GMA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GMA's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

GMA

-0.3%

AU Mortgage

-0.3%

AU Market


1 Year Return

-38.0%

GMA

-24.4%

AU Mortgage

-2.7%

AU Market

Return vs Industry: GMA underperformed the Australian Mortgage industry which returned -24.4% over the past year.

Return vs Market: GMA underperformed the Australian Market which returned -2.7% over the past year.


Shareholder returns

GMAIndustryMarket
7 Day-0.8%-0.3%-0.3%
30 Day4.9%2.2%0.7%
90 Day36.6%33.4%9.1%
1 Year-36.5%-38.0%-22.2%-24.4%0.6%-2.7%
3 Year9.2%-19.5%7.7%-15.2%25.3%9.8%
5 Year62.7%-19.6%43.8%-12.3%65.4%32.0%

Long-Term Price Volatility Vs. Market

How volatile is Genworth Mortgage Insurance Australia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genworth Mortgage Insurance Australia undervalued compared to its fair value and its price relative to the market?

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMA (A$2.35) is trading below our estimate of fair value (A$3.09)

Significantly Below Fair Value: GMA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GMA is unprofitable, so we can't compare its PE Ratio to the XO Mortgage industry average.

PE vs Market: GMA is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GMA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GMA is good value based on its PB Ratio (0.7x) compared to the AU Mortgage industry average (1.2x).


Next Steps

Future Growth

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

60.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: GMA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GMA's is expected to become profitable in the next 3 years.

Revenue vs Market: GMA's revenue (2.4% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: GMA's revenue (2.4% 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 (6%).


Next Steps

Past Performance

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

-38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMA is currently unprofitable.

Growing Profit Margin: GMA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GMA is unprofitable, and losses have increased over the past 5 years at a rate of 38.2% per year.

Accelerating Growth: Unable to compare GMA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GMA is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (1%).


Return on Equity

High ROE: GMA has a negative Return on Equity (-4.09%), as it is currently unprofitable.


Next Steps

Financial Health

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


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.


Next Steps

Dividend

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

5.92%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GMA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GMA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GMA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GMA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GMA is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GMA's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Pauline Blight-Johnston

0.83

Tenure

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...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Bencsik
Chief Financial Officer1.92yrsAU$883.73k0.0093%
A$ 85.9k
Andrew Cormack
Chief Risk Officer5.25yrsAU$976.11k0.017%
A$ 157.0k
Steven Degetto
Chief Commercial Officer3.5yrsAU$843.52k0.0031%
A$ 28.3k
Pauline Blight-Johnston
CEO, MD & Director0.83yrno datano data
Erica Pickford
Head of Operations and Chair of the Diversity & Inclusion Council3.5yrsno datano data
Cameron McDonald
Head of Technologyno datano datano data
Paul O'Sullivan
Head of Investor Relationsno datano datano data
Prudence Milne
General Counsel & Company Secretary4.33yrsno datano data
Brad Dean
Head of Strategy & Innovation2.83yrsno datano data
Iwona Falkiner
Head of Corporate Affairsno datano datano data
Brady Weissel
Assistant Company Secretary4.83yrsno datano data

3.5yrs

Average Tenure

Experienced Management: GMA's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pauline Blight-Johnston
CEO, MD & Director0.83yrno datano data
Ian MacDonald
Independent Chairman of the Board4.42yrsAU$265.00k0.032%
A$ 296.6k
Graham Mirabito
Independent Non-Executive Director0.42yrno datano data
David Foster
Independent Director4.67yrsAU$175.00k0.0056%
A$ 51.6k
Rajinder Singh
Non-Executive Director0.33yrno datano data
Stuart Take
Director8.92yrsno data0.0020%
A$ 18.7k
Andrea Waters
Independent Non-Executive Director0.83yrno data0.0061%
A$ 56.2k
Gai McGrath
Independent Non-Executive Director4.42yrsAU$175.00k0.0072%
A$ 66.7k
Duncan West
Independent Non Executive Director2.33yrsAU$163.00k0.015%
A$ 135.7k

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: GMA's board of directors are not considered experienced ( 2.3 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: Insufficient data to determine if insiders have bought more shares than they have sold 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 company bio, 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
  • Market Cap: AU$928.157m
  • Shares outstanding: 412.51m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2014
GMACHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2014
0GIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2014

Biography

Genworth Mortgage Insurance Australia Limited, through its subsidiaries, engages in the loan mortgage insurance business in Australia. The company facilitates residential mortgage lending by transferring r...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 07:03
End of Day Share Price2021/01/19 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.