NYSE:GNW

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with questionable 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


Market Performance


7 Day Return

0.9%

GNW

-0.01%

US Insurance

1.0%

US Market


1 Year Return

9.8%

GNW

15.1%

US Insurance

6.7%

US Market

Return vs Industry: GNW underperformed the US Insurance industry which returned 15.1% over the past year.

Return vs Market: GNW exceeded the US Market which returned 6.7% over the past year.


Share holder returns

GNWIndustryMarket
7 Day0.9%-0.01%1.0%
30 Day-1.6%-1.6%-1.8%
90 Day13.0%-3.5%-1.8%
1 Year9.8%9.8%17.9%15.1%9.1%6.7%
3 Year-13.2%-13.2%42.0%31.1%46.1%36.6%
5 Year-65.9%-65.9%74.5%53.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

13.72x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate GNW's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate GNW's fair value to establish if it is undervalued.


Price Based on Earnings

PE vs Industry: GNW is good value based on its PE Ratio (13.7x) compared to the Insurance industry average (15.6x).

PE vs Market: GNW is good value based on its PE Ratio (13.7x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: GNW is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

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 expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GNW's forecast earnings growth (13.1% per year) is above the savings rate (2.7%).

Earnings vs Market: GNW's earnings (13.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: GNW's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: GNW's revenue is forecast to decline over the next 3 years (-0.2%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GNW's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Genworth Financial performed over the past 5 years?

51.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GNW's earnings have grown significantly by 51.2% per year over the past 5 years.

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

Earnings vs Industry: GNW had negative earnings growth (-79.4%) over the past year, making it difficult to compare to the Insurance industry average (3.1%).


Return on Equity

High ROE: GNW's Return on Equity (2.1%) is considered low.


Return on Assets

ROA vs Industry: GNW's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

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


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 4.658640x 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%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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 .


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

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

4.8yrs

Average management tenure


CEO

Tom McInerney (62yo)

6.8yrs

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 ($USD9.31M) is about average for companies of similar size in the US market ($USD4.08M).

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


Management Age and Tenure

4.8yrs

Average Tenure

54yo

Average Age

Experienced Management: GNW's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

68yo

Average Age

Experienced Board: GNW's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Kelly Groh (50yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$1.83m
  • Tom McInerney (62yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$9.31m
  • Kevin Schneider (57yo)

    Executive VP & COO

    • Tenure: 3.8yrs
    • Compensation: US$2.55m
  • Kazutoshi Kuwahara

    Managing Director of Japanese Operations

    • Tenure: 0yrs
  • Luke Oxenham

    Director Corporate Finance & Investor Relations

    • Tenure: 4.8yrs
  • Ward Bobitz (54yo)

    Executive VP & General Counsel

    • Tenure: 4.8yrs
    • Compensation: US$2.04m
  • Dan Sheehan (53yo)

    Executive VP & Chief Investment Officer

    • Tenure: 5.8yrs
    • Compensation: US$2.61m
  • Robert Vrolyk

    Chief Actuary and Senior Vice President

    • Tenure: 10.7yrs
  • John Apostle

    Chief Compliance Officer

    • Tenure: 15.4yrs
  • Pamela Harrison (54yo)

    Executive Vice President of Human Resources

    • Tenure: 1.8yrs

Board Members

  • Tom Moloney (75yo)

    Director

    • Tenure: 10yrs
    • Compensation: US$226.73k
  • James Riepe (75yo)

    Non-Executive Chairman of the Board

    • Tenure: 7.4yrs
    • Compensation: US$383.68k
  • David Moffett (67yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$230.73k
  • Bob Restrepo (68yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$233.89k
  • Debra Perry (68yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$208.98k
  • Bill Bolinder (75yo)

    Director

    • Tenure: 9yrs
    • Compensation: US$226.73k
  • Melina Higgins (51yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$214.73k
  • Tom McInerney (62yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$9.31m
  • G. Conrad (71yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$214.23k

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$2.190b
  • 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, Aust ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:40
End of Day Share Price2019/10/11 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.

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