OTCPK:GMIC.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer and good value.


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


Market Performance


7 Day Return

-1.6%

GMIC.F

1.6%

US Mortgage

0.4%

US Market


1 Year Return

30.2%

GMIC.F

15.2%

US Mortgage

6.9%

US Market

Return vs Industry: GMIC.F exceeded the US Mortgage industry which returned 15.2% over the past year.

Return vs Market: GMIC.F exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

GMIC.FIndustryMarket
7 Day-1.6%1.6%0.4%
30 Day-0.7%1.0%-1.2%
90 Day15.8%4.0%-0.4%
1 Year41.5%30.2%17.7%15.2%9.3%6.9%
3 Year113.7%78.6%41.2%31.8%45.8%36.4%
5 Year55.6%16.3%71.5%53.4%62.9%45.1%

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

No news available

Valuation

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

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GMIC.F ($39.55) is trading below our estimate of fair value ($59.1)

Significantly Undervalued: GMIC.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GMIC.F is good value based on its PE Ratio (11.2x) compared to the Mortgage industry average (14.4x).

PE vs Market: GMIC.F is good value based on its PE Ratio (11.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: GMIC.F is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: GMIC.F is good value based on its PB Ratio (1.1x) compared to the US Mortgage industry average (1.1x).


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?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMIC.F's forecast earnings growth (1.8% per year) is below the savings rate (2.7%).

Earnings vs Market: GMIC.F's earnings (1.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: GMIC.F's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: GMIC.F's revenue is forecast to decline over the next 3 years (-1.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GMIC.F's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

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

5.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GMIC.F's earnings have grown by 5.9% per year over the past 5 years.

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

Earnings vs Industry: GMIC.F had negative earnings growth (-19.5%) over the past year, making it difficult to compare to the Mortgage industry average (31.5%).


Return on Equity

High ROE: GMIC.F's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: GMIC.F has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: GMIC.F has improved its Return on Capital Employed over the past 3 years.


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: GMIC.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: GMIC.F's debt is covered by short term assets (assets are 1.279310x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.88%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GMIC.F's dividend (3.88%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GMIC.F's dividend (3.88%) is in the top 25% of dividend payers in the US market (3.73%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.5%), GMIC.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GMIC.F's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).


Next Steps

Management

What is the CEO of Genworth MI Canada's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Stuart Levings (46yo)

4.8yrs

Tenure

CA$3,517,021

Compensation

Mr. Stuart Levings has been the Chief Executive Officer and President of Genworth MI Canada Inc a subsidiary of Genworth Financial, Inc. since August 22, 2016. Mr. Levings served as the President and Chief ...


CEO Compensation Analysis

Compensation vs. Market: Stuart's total compensation ($USD2.68M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

4.1yrs

Average Tenure

Experienced Management: GMIC.F's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: GMIC.F's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: GMIC.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$88,44030 Aug 19
Deborah McPherson
EntityIndividual
Role
Head of Sales
Senior Vice President of Sales & Marketing
Shares2,385
Max PriceCA$37.08
SellCA$381,16326 Aug 19
Deborah McPherson
EntityIndividual
Role
Head of Sales
Senior Vice President of Sales & Marketing
Shares10,301
Max PriceCA$37.05
SellCA$14,93221 Aug 19
Mark Kubisheski
EntityIndividual
Shares404
Max PriceCA$36.96
SellCA$6314 Dec 18
Stuart Levings
EntityIndividual
Role
Chief Executive Officer
President
Shares2
Max PriceCA$31.48
SellCA$284,46507 Nov 18
Philip Mayers
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares8,300
Max PriceCA$34.27
SellCA$281,03807 Nov 18
Winsor Macdonell
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares8,200
Max PriceCA$34.27

Ownership Breakdown


Management Team

  • Stuart Levings (46yo)

    President

    • Tenure: 4.8yrs
    • Compensation: CA$3.52m
  • Philip Mayers

    Senior VP & CFO

    • Tenure: 10.8yrs
    • Compensation: CA$1.11m
  • Winsor Macdonell

    Senior VP

    • Tenure: 0yrs
    • Compensation: CA$855.25k
  • Debbie McPherson

    Senior Vice President of Sales & Marketing

    • Tenure: 0yrs
    • Compensation: CA$872.16k
  • Yvonne Burghardt-Mcewan

    Financial Controller

    • Tenure: 0yrs
  • Craig Sweeney

    Senior VP & Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: CA$740.17k
  • Jonathan Pinto

    Vice President of Investor Relations

    • Tenure: 4.8yrs
  • Jim Spitali

    Senior Vice President of Operations

    • Tenure: 1yrs
  • Mary-Jo Hewat

    Senior Vice President of Human Resources

    • Tenure: 3.4yrs
    • Compensation: CA$670.44k
  • Zorica Todorovic

    Senior VP & Chief Information Officer

    • Tenure: 0.08yrs

Board Members

  • Andrea Bolger (61yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$119.00k
  • Sidney Horn (69yo)

    Lead Director

    • Tenure: 10.8yrs
    • Compensation: CA$152.50k
  • Brian Hurley (60yo)

    Chairman of the Board

    • Tenure: 10.8yrs
    • Compensation: CA$280.00k
  • Raj Singh (57yo)

    Director

    • Tenure: 0.7yrs
  • Sharon Giffen

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$107.20k
  • Stuart Levings (46yo)

    President

    • Tenure: 4.8yrs
    • Compensation: CA$3.52m
  • Jerome Upton (55yo)

    Director

    • Tenure: 10.3yrs
  • Rohit Gupta (44yo)

    Director

    • Tenure: 3.3yrs
  • Neil Parkinson

    Director

    • Tenure: 2.7yrs
    • Compensation: CA$124.00k

Company Information

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


Key Information

  • Name: Genworth MI Canada Inc.
  • Ticker: GMIC.F
  • Exchange: OTCPK
  • Founded: 1995
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$4.521b
  • Listing Market Cap: CA$3.442b
  • Shares outstanding: 86.03m
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:14
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.