TSX:MIC

Stock Analysis Report

Genworth MI Canada

Executive Summary

Genworth MI Canada Inc., through its subsidiaries, operates as a private residential mortgage insurer in Canada.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Genworth MI Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MIC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

MIC

2.9%

CA Mortgage

7.1%

CA Market


1 Year Return

-26.1%

MIC

-21.5%

CA Mortgage

-25.3%

CA Market

Return vs Industry: MIC underperformed the Canadian Mortgage industry which returned -21.5% over the past year.

Return vs Market: MIC matched the Canadian Market which returned -25.3% over the past year.


Shareholder returns

MICIndustryMarket
7 Day7.8%2.9%7.1%
30 Day-44.9%-40.6%-24.1%
90 Day-47.3%-45.4%-26.7%
1 Year-9.5%-26.1%-12.3%-21.5%-22.9%-25.3%
3 Year9.4%-18.6%-10.8%-25.0%-15.6%-23.4%
5 Year57.1%5.1%-6.6%-24.8%-3.2%-17.5%

Price Volatility Vs. Market

How volatile is Genworth MI Canada's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genworth MI Canada undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MIC (CA$29.92) is trading below our estimate of fair value (CA$96.59)

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


Price To Earnings Ratio

PE vs Industry: MIC is good value based on its PE Ratio (6.1x) compared to the Mortgage industry average (7x).

PE vs Market: MIC is good value based on its PE Ratio (6.1x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: MIC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

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


Next Steps

Future Growth

How is Genworth MI Canada forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIC's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: MIC's earnings are forecast to decline over the next 3 years (-1.4% per year).

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

Revenue vs Market: MIC's revenue is expected to decline over the next 3 years (-14.5% per year).

High Growth Revenue: MIC's revenue is forecast to decline over the next 3 years (-14.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MIC's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Genworth MI Canada performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIC has high quality earnings.

Growing Profit Margin: MIC's current net profit margins (47.8%) are lower than last year (51.9%).


Past Earnings Growth Analysis

Earnings Trend: MIC's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: MIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MIC had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Mortgage industry average (12.7%).


Return on Equity

High ROE: MIC's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Genworth MI Canada'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

Inventory Level: MIC has a low level of unsold assets or inventory.

Debt Coverage by Assets: MIC's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: MIC's level of assets compared to its equity is low.

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

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

Loan Level: Insufficient data to determine if MIC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MIC has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

What is Genworth MI Canada's current dividend yield, its reliability and sustainability?

14.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MIC's dividend (14.97%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).

High Dividend: MIC's dividend (14.97%) is in the top 25% of dividend payers in the Canadian market (8.79%)


Stability and Growth of Payments

Stable Dividend: MIC's dividends per share have been stable in the past 10 years.

Growing Dividend: MIC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.1%), MIC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MIC's dividends in 3 years are forecast to be well covered by earnings (46.8% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Stuart Levings (46yo)

5.17s

Tenure

CA$3,517,021

Compensation

Mr. Stuart Levings is the Chief Executive Officer and President of Genworth MI Canada Inc., a subsidiary of Genworth Financial, Inc. since January 2015. Mr. Levings held a variety of senior management posi ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD2.50M) is about average for companies of similar size in the Canadian market ($USD2.40M).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Levings
President5.17yrsCA$3.52m0.041% CA$1.2m
Philip Mayers
Senior VP & CFO11.17yrsCA$1.11m0.019% CA$533.6k
Winsor Macdonell
Senior VPno dataCA$855.25k0.020% CA$547.9k
Deborah McPherson
Senior Vice President of Sales & Marketingno dataCA$872.16k0.020% CA$555.4k
Craig Sweeney
Senior VP & Chief Risk Officerno dataCA$740.17k0.012% CA$338.3k
Jim Spitali
Senior Vice President of Operations1.42yrsno data0.0038% CA$106.2k
Zorica Todorovic
Senior VP & Chief Information Officer0.50yrno data0.0045% CA$126.3k
Mary-Jo Hewat
Senior Vice President of Human Resources3.83yrsCA$670.44k0.0024% CA$68.2k
Yvonne Burghardt-Mcewan
Financial Controllerno datano datano data
Jonathan Pinto
Vice President of Investor Relationsno datano datano data

3.8yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Stuart Levings
President5.17yrsCA$3.52m0.041% CA$1.2m
Andrea Bolger
Independent Director3.75yrsCA$119.00k0.0068% CA$189.4k
Sidney Horn
Lead Director11.17yrsCA$152.50k0.0070% CA$194.4k
Sharon Giffen
Independent Director2.75yrsCA$107.20kno data
Martin Laguerre
Director0.083yrno datano data
Spencer Enright
Director0.25yrno datano data
David Nowak
Chairman of the Boardno datano datano data
Neil Parkinson
Director3.08yrsCA$124.00k0.010% CA$291.7k
Paul Forestell
Director0.25yrno datano data

2.9yrs

Average Tenure

54.5yo

Average Age

Experienced Board: MIC's board of directors are not considered experienced ( 2.9 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 MI Canada Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genworth MI Canada Inc.
  • Ticker: MIC
  • Exchange: TSX
  • Founded: 1995
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$2.794b
  • Shares outstanding: 86.23m
  • Website: https://genworth.ca/en/index.aspx

Number of Employees


Location

  • Genworth MI Canada Inc.
  • 2060 Winston Park Drive
  • Suite 300
  • Oakville
  • Ontario
  • L6H 5R7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MICTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2009
2GEDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2009
GMIC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2009

Biography

Genworth MI Canada Inc., through its subsidiaries, operates as a private residential mortgage insurer in Canada. It provides mortgage default insurance to residential mortgage homebuyers, lenders, brokers, and realtors. The company was founded in 1995 and is headquartered in Oakville, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 02:52
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.