NYSE:GNW

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (4.8x) is below the US market (18.2x)

Earnings grew by 282.4% over the past year

Risk Analysis

No risks detected for GNW from our risk checks.


Snowflake Analysis

Solid track record and fair value.


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: GNW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

GNW

-4.0%

US Insurance

-4.2%

US Market


1 Year Return

10.9%

GNW

13.0%

US Insurance

14.0%

US Market

Return vs Industry: GNW underperformed the US Insurance industry which returned 16.1% over the past year.

Return vs Market: GNW underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

GNWIndustryMarket
7 Day-2.1%-4.0%-4.2%
30 Day0.7%0.04%-1.8%
90 Day5.7%1.0%2.6%
1 Year10.9%10.9%15.7%13.0%16.3%14.0%
3 Year4.4%4.4%30.6%20.5%43.2%34.0%
5 Year-43.1%-43.1%66.4%46.4%65.9%47.6%

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

Valuation

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

4.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GNW ($4.33) is trading above our estimate of fair value ($3.84)

Significantly Below Fair Value: GNW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GNW is good value based on its PE Ratio (4.8x) compared to the Insurance industry average (13.4x).

PE vs Market: GNW is good value based on its PE Ratio (4.8x) compared to the US market (18.2x).


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 (0.2x) compared to the US Insurance industry average (1.2x).


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 GNW's forecast earnings growth is above the savings rate (1.7%).

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 (-1.4% per year).

High Growth Revenue: GNW'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: GNW'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?

68.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNW has high quality earnings.

Growing Profit Margin: GNW's current net profit margins (5.6%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: GNW has become profitable over the past 5 years, growing earnings by 68.4% per year.

Accelerating Growth: GNW's earnings growth over the past year (282.4%) exceeds its 5-year average (68.4% per year).

Earnings vs Industry: GNW earnings growth over the past year (282.4%) exceeded the Insurance industry 32.1%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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: GNW has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: Insufficient data to determine if GNW 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

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GNW'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 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: GNW is not paying a notable dividend for the US market.


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?

5.1yrs

Average management tenure


CEO

Tom McInerney (62yo)

7.1yrs

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 ($USD9.31M) is above average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas McInerney
President7.1yrsUS$9.31m0.39% $8.4m
Kelly Groh
Executive VP & CFO4.3yrsUS$1.83m0.094% $2.0m
Kevin Schneider
Executive VP & COO4.1yrsUS$2.55m0.19% $4.0m
Daniel Sheehan
Executive VP & Chief Investment Officer6.2yrsUS$2.61m0.15% $3.2m
Ward Bobitz
Executive VP & General Counsel 5.1yrsUS$2.04m0.058% $1.2m
Luke Oxenham
Director Corporate Finance & Investor Relations5.1yrsno datano data
John Apostle
Chief Compliance Officer15.8yrsno datano data
Pamela Harrison
Executive Vice President of Human Resources2.1yrsno datano data
Kazutoshi Kuwahara
Managing Director of Japanese Operations0yrsno datano data
Robert Vrolyk
Chief Actuary and Senior Vice President11yrsno datano data

5.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: GNW's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas McInerney
President7.1yrsUS$9.31m0.39% $8.4m
Thomas Moloney
Independent Director10.3yrsUS$226.73k0.0022% $46.9k
James Riepe
Independent Non-Executive Chairman of the Board7.8yrsUS$383.68k0.014% $290.4k
David Moffett
Independent Director7.2yrsUS$230.73kno data
Robert Restrepo
Independent Director3.2yrsUS$233.89kno data
Debra Perry
Independent Director3.2yrsUS$208.98kno data
Melina Higgins
Independent Director6.4yrsUS$214.73kno data
G. Conrad
Independent Director6.9yrsUS$214.23kno data

7.0yrs

Average Tenure

68yo

Average Age

Experienced Board: GNW's board of directors are considered experienced (7 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: GNW
  • Exchange: NYSE
  • Founded: 1871
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$2.150b
  • Shares outstanding: 503.47m
  • 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

Biography

Genworth Financial, Inc. provides insurance and homeownership solutions in the United States and internationally. It operates through five segments: U.S. Mortgage Insurance, Canada 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 Canada Mortgage Insurance segment provides flow mortgage insurance; and bulk mortgage insurance that aid in the sale of mortgages to the capital markets, as well as helps lenders manage capital and risk in Canada. 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 fixed annuity products in the United States. The Runoff segment covers non-strategic products, which primarily include variable annuity, variable life insurance, institutional, corporate-owned life insurance, and accident and health insurance products. This segment’s institutional products include funding agreements and funding agreements backing notes. The company distributes its products and services primarily through appointed independent producers and employer groups. 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 Analysis2020/02/25 00:54
End of Day Share Price2020/02/24 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.