DB:GGK

Stock Analysis Report

Genworth Financial

Executive Summary

Genworth Financial, Inc. provides insurance products in the United States and internationally.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-17.8%

GGK

-3.6%

DE Insurance

-0.6%

DE Market


1 Year Return

-14.2%

GGK

-22.9%

DE Insurance

-20.9%

DE Market

Return vs Industry: GGK exceeded the German Insurance industry which returned -22.9% over the past year.

Return vs Market: GGK exceeded the German Market which returned -20.9% over the past year.


Shareholder returns

GGKIndustryMarket
7 Day-17.8%-3.6%-0.6%
30 Day-23.9%-22.4%-16.6%
90 Day-20.9%-31.7%-26.0%
1 Year-14.2%-14.2%-19.5%-22.9%-18.6%-20.9%
3 Year-19.0%-19.0%3.7%-8.8%-19.0%-25.8%
5 Year-58.2%-58.2%13.3%-9.3%-21.1%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Genworth Financial 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: GGK (€3.06) is trading below our estimate of fair value (€9.92)

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


Price To Earnings Ratio

PE vs Industry: GGK is good value based on its PE Ratio (3.7x) compared to the Insurance industry average (9x).

PE vs Market: GGK is good value based on its PE Ratio (3.7x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GGK is good value based on its PB Ratio (0.1x) compared to the DE Insurance industry average (0.8x).


Next Steps

Future Growth

How is Genworth Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GGK's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if GGK's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GGK's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: GGK's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GGK's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Genworth Financial performed over the past 5 years?

69.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GGK has high quality earnings.

Growing Profit Margin: GGK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GGK has become profitable over the past 5 years, growing earnings by 69.3% per year.

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

Earnings vs Industry: GGK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (17.9%).


Return on Equity

High ROE: GGK's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Genworth Financial'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: GGK has a low level of unsold assets or inventory.

Debt Coverage by Assets: GGK's debt is covered by short term assets (assets are 6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GGK is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: GGK is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: GGK is not paying a notable dividend for the German market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Tom McInerney (62yo)

7.25s

Tenure

US$9,311,944

Compensation

Mr. Thomas Joseph McInerney, also known as Tom, has been the Chief Executive Officer, President, and Director of Genworth Financial, Inc., since January 1, 2013. Mr. McInerney serves as Senior Vice Preside ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD9.31M) is above average for companies of similar size in the German market ($USD1.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas McInerney
President7.25yrsUS$9.31m0.41% $6.4m
Kelly Groh
Executive VP & CFO4.5yrsUS$1.83m0.098% $1.5m
Kevin Schneider
Executive VP & COO4.25yrsUS$2.55m0.19% $3.0m
Daniel Sheehan
Executive VP & Chief Investment Officer6.33yrsUS$2.61m0.16% $2.4m
Ward Bobitz
Executive VP & General Counsel 5.25yrsUS$2.04m0.061% $946.0k
Luke Oxenham
Director Corporate Finance & Investor Relations5.25yrsno datano data
John Apostle
Chief Compliance Officer15.92yrsno datano data
Pamela Harrison
Executive Vice President of Human Resources2.25yrsno datano data
Kazutoshi Kuwahara
Managing Director of Japanese Operationsno datano datano data
Robert Vrolyk
Chief Actuary and Senior Vice President11.17yrsno datano data

5.3yrs

Average Tenure

54yo

Average Age

Experienced Management: GGK's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas McInerney
President7.25yrsUS$9.31m0.41% $6.4m
Thomas Moloney
Independent Director10.5yrsUS$226.73k0.0022% $34.0k
James Riepe
Independent Non-Executive Chairman of the Board7.92yrsUS$383.68k0.013% $209.9k
David Moffett
Independent Director7.33yrsUS$230.73kno data
Robert Restrepo
Independent Director3.33yrsUS$233.89kno data
Debra Perry
Independent Director3.33yrsUS$208.98kno data
Melina Higgins
Independent Director6.58yrsUS$214.73kno data
G. Conrad
Independent Director7.08yrsUS$214.23kno data

7.2yrs

Average Tenure

68yo

Average Age

Experienced Board: GGK's board of directors are considered experienced (7.2 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Genworth Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genworth Financial, Inc.
  • Ticker: GGK
  • Exchange: DB
  • Founded: 1871
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$1.681b
  • Listing Market Cap: US$1.558b
  • Shares outstanding: 504.77m
  • Website: https://www.genworth.com

Number of Employees


Location

  • Genworth Financial, Inc.
  • 6620 West Broad Street
  • Richmond
  • Virginia
  • 23230
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNWNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMay 2004
GGKDB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2004
GNW *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMay 2004
GGKBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFMay 2004

Biography

Genworth Financial, Inc. provides insurance products in the United States and internationally. It operates through four segments: U.S. Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans. The Australia Mortgage Insurance segment offers flow mortgage insurance and bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. The U.S. Life Insurance segment offers long-term care insurance products; and service traditional life insurance and fixed annuity products in the United States. The Runoff segment covers variable annuity, variable life insurance, and corporate-owned life insurance, as well as funding agreements. The company distributes its products and services through employer groups and and directly to customers. Genworth Financial, Inc. was founded in 1871 and is headquartered in Richmond, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 20:32
End of Day Share Price2020/04/03 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.