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Genworth Mortgage Insurance Australia

Market Cap

AU$1.1b

Last Updated

2021/05/07 08:16 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 15.8% below our estimate of its fair value

Earnings are forecast to grow 7.26% per year

Became profitable this year

Risk Analysis

No risks detected for GMA from our risk checks.


Snowflake Analysis

Slightly overvalued with questionable track record.


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 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.


Market Performance


7 Day Return

-5.1%

GMA

-0.2%

AU Mortgage

-0.5%

AU Market


1 Year Return

26.8%

GMA

43.0%

AU Mortgage

37.3%

AU Market

Return vs Industry: GMA underperformed the Australian Mortgage industry which returned 43% over the past year.

Return vs Market: GMA underperformed the Australian Market which returned 37.3% over the past year.


Shareholder returns

GMAIndustryMarket
7 Day-5.1%-0.2%-0.5%
30 Day2.4%3.4%2.3%
90 Day0.8%2.8%2.9%
1 Year26.8%26.8%45.2%43.0%41.4%37.3%
3 Year35.5%4.8%31.1%6.2%31.1%15.3%
5 Year54.0%-17.3%51.3%-5.2%62.1%31.8%

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?

15.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMA (A$2.6) is trading below our estimate of fair value (A$3.09)

Significantly Below Fair Value: GMA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GMA is poor value based on its PE Ratio (50.1x) compared to the AU Mortgage industry average (13.4x).

PE vs Market: GMA is poor value based on its PE Ratio (50.1x) compared to the Australian market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: GMA is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: GMA is good value based on its PB Ratio (0.8x) compared to the AU Mortgage industry average (1x).


Future Growth

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

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMA's forecast earnings growth (7.3% per year) is above the savings rate (1.9%).

Earnings vs Market: GMA's earnings (7.3% per year) are forecast to grow slower than the Australian market (14% per year).

High Growth Earnings: GMA's earnings are forecast to grow, but not significantly.

Revenue vs Market: GMA's revenue (1.9% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: GMA's revenue (1.9% 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 (7.4%).


Past Performance

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

-44.7%

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 44.7% 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 (15.2%).


Return on Equity

High ROE: GMA's Return on Equity (1.5%) 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 Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: GMA's Assets to Equity ratio (2.7x) 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?

6.92%

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?

3.8yrs

Average management tenure


CEO

Pauline Blight-Johnston

1.17yrs

Tenure

AU$920,095

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 ($USD715.25K) is about average for companies of similar size in the Australian market ($USD878.93K).

Compensation vs Earnings: Insufficient data to compare Pauline's compensation with company performance.


Leadership Team

Experienced Management: GMA's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: GMA's board of directors are not considered experienced ( 2.7 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 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$1.101b
  • 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


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 Analysis2021/05/07 08:16
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.