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GNW

Genworth FinancialNYSE:GNW Stock Report

Market Cap

US$2.0b

7D

-6.1%

1Y

-15.2%

Updated

30 Nov, 2021

Data

Company Financials +
GNW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends0/6

GNW Stock Overview

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

Genworth Financial Competitors

MetLife

NYSE:MET

US$50.4b

Prudential Financial

NYSE:PRU

US$39.7b

Aflac

NYSE:AFL

US$36.8b

Athene Holding

NYSE:ATH

US$16.2b

Price History & Performance

Summary of all time highs, changes and price drops for Genworth Financial
Historical stock prices
Current Share PriceUS$3.85
52 Week HighUS$4.76
52 Week LowUS$2.56
Beta0.98
1 Month Change-6.33%
3 Month Change2.67%
1 Year Change-15.20%
3 Year Change-18.95%
5 Year Change-8.77%
Change since IPO-80.26%

Recent News & Updates

Nov 18

Genworth Financial, Inc.: Long-Term Upside, Near-Term Lull

Genworth's managers have their plan to return the company to growth and prosperity. The plan prioritizes reducing debt, standing up new LTC insurance businesses, stabilizing legacy LTC businesses, maximizing Enact's value, and returning capital to shareholders. The plan is expected to create value for Genworth shareholders in the intermediate to long term. There is, however, very little near-term upside for the stock. Therefore, Genworth receives a Neutral rating with a $4.25/share price target.

Oct 28
With EPS Growth And More, Genworth Financial (NYSE:GNW) Is Interesting

With EPS Growth And More, Genworth Financial (NYSE:GNW) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Sep 11

Genworth Financial: Enact's IPO As A Catalyst

GNW's mortgage insurance segment has grown significantly, and the positive housing outlook provides a bullish scenario for Enact's growth prospects. The management waits for better entry timing for the planned IPO until forbearance plan expirations in September and October clear up the operating environment. Enact's current Net Assets amount to $4.09 billion implying a current rock-bottom valuation of $814 million for its 19.9% stake. The IPO of Enact remains the catalyst for GNW's improving liquidity position that will unlock shareholders' value and drive its share price upwards.

Aug 23

Genworth Financial, Inc.: Another Bite At The IPO Apple

Genworth has refiled its planned IPO of Enact Holdings, Inc. with the SEC after shelving it earlier this year. The proceeds from the IPO, private placement of additional shares, and a fourth quarter dividend from Enact will put Genworth in a strong financial position heading into 2022. Executing the IPO and private placement will also likely result in a multiple notch rating increase of Genworth's credit. These moves should ultimately move Genworth's stock higher.

Shareholder Returns

GNWUS InsuranceUS Market
7D-6.1%-2.2%-0.9%
1Y-15.2%25.9%23.3%

Return vs Industry: GNW underperformed the US Insurance industry which returned 23.5% over the past year.

Return vs Market: GNW underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is GNW's price volatile compared to industry and market?
GNW volatility
GNW Average Weekly Movement6.1%
Insurance Industry Average Movement4.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: GNW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GNW's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18713,000Tom McInerneyhttps://www.genworth.com

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.

Genworth Financial Fundamentals Summary

How do Genworth Financial's earnings and revenue compare to its market cap?
GNW fundamental statistics
Market CapUS$1.95b
Earnings (TTM)US$1.05b
Revenue (TTM)US$8.62b

1.9x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNW income statement (TTM)
RevenueUS$8.62b
Cost of RevenueUS$6.99b
Gross ProfitUS$1.64b
ExpensesUS$586.00m
EarningsUS$1.05b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.07
Gross Margin18.98%
Net Profit Margin12.19%
Debt/Equity Ratio15.3%

How did GNW perform over the long term?

See historical performance and comparison

Valuation

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

22.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GNW ($3.85) is trading below our estimate of fair value ($4.99)

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


Price To Earnings Ratio

PE vs Industry: GNW is good value based on its PE Ratio (1.9x) compared to the US Insurance industry average (10.6x).

PE vs Market: GNW is good value based on its PE Ratio (1.9x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GNW is good value based on its PB Ratio (0.1x) compared to the US Insurance industry average (1.2x).


Future Growth

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

-4.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GNW's forecast earnings growth is above the savings rate (2%).

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

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

Revenue vs Market: GNW's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: GNW's revenue is forecast to decline over the next 3 years (-4.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GNW's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Genworth Financial performed over the past 5 years?

42.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNW has high quality earnings.

Growing Profit Margin: GNW's current net profit margins (12.2%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: GNW has become profitable over the past 5 years, growing earnings by 42.1% per year.

Accelerating Growth: GNW's earnings growth over the past year (142.7%) exceeds its 5-year average (42.1% per year).

Earnings vs Industry: GNW earnings growth over the past year (142.7%) exceeded the Insurance industry 39.8%.


Return on Equity

High ROE: GNW's Return on Equity (6.8%) is considered low.


Financial Health

How is Genworth Financial's financial position?


Financial Position Analysis

Short Term Liabilities: GNW's short term assets ($19.6B) exceed its short term liabilities ($13.1B).

Long Term Liabilities: GNW's short term assets ($19.6B) do not cover its long term liabilities ($70.7B).


Debt to Equity History and Analysis

Debt Level: GNW's net debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: GNW's debt to equity ratio has reduced from 32.3% to 15.3% over the past 5 years.

Debt Coverage: GNW's debt is well covered by operating cash flow (32.5%).

Interest Coverage: GNW's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GNW'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 GNW's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Tom McInerney (64 yo)

8.83yrs

Tenure

US$7,357,588

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 ($USD7.36M) is above average for companies of similar size in the US market ($USD3.62M).

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


Leadership Team

Experienced Management: GNW's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: GNW's board of directors are not considered experienced ( 0.9 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: GNW insiders have only sold shares 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 Financial, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Genworth Financial, Inc.
  • Ticker: GNW
  • Exchange: NYSE
  • Founded: 1871
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$1.953b
  • Shares outstanding: 507.39m
  • Website: https://www.genworth.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:22
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
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.