Genworth Mortgage Insurance Australia Ltd (HLI) AI Stock Analysis

• Market Cap: AU$1.57B
• Dividend Yield: 5.51%
• Average Volume (3M): 870.43K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.41
• Revenue Growth: -7.39%
• EPS Growth: 30.01%
• Country: AU
• Employees: 204
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.46
• Shares Outstanding: 272,486,050
• 10 Day Avg. Volume: 865,617
• 30 Day Avg. Volume: 870,434
• PEG Ratio: -0.95
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 9.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.95
• Price Target Upside: -31.39% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: AU$6.50 ▲(12.85% Upside)

Genworth Mortgage Insurance Australia Ltd's stock is supported by a strong valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. The financial performance is stable but shows some areas of concern, such as declining revenue and negative operating cash flows. Technical indicators suggest strong momentum, though the overbought conditions may lead to a short-term pullback.

Positive Factors

Balance Sheet Health

Genworth's low leverage and healthy equity ratio reflect a strong balance sheet, providing financial stability and flexibility for future growth.

Cash Flow Improvement

Positive free cash flow signifies improved cash management, enhancing liquidity and enabling reinvestment in growth opportunities.

EBITDA Margin Strength

A strong EBITDA margin highlights operational efficiency, supporting profitability and competitive positioning in the insurance sector.

Negative Factors

Declining Revenue

A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Decreased Net Profit Margin

A sharp decline in net profit margin suggests reduced profitability, which could affect the company's ability to generate shareholder value.

Negative Operating Cash Flow

Negative operating cash flow indicates potential liquidity issues, limiting the company's capacity to fund operations and invest in growth.

Genworth Mortgage Insurance Australia Ltd Business Overview & Revenue Model

Company Description

Helia Group Limited, together with its subsidiaries, engages in the loan mortgage insurance business in Australia. The company facilitates residential mortgage lending by transferring risk from lenders to lenders mortgage insurance (LMI) providers, primarily for high loan to value ratio residential mortgage loans; and portfolio of seasoned home loans. Helia Group Limited was formerly known as Genworth Mortgage Insurance Australia Limited and changed its name to Helia Group Limited in November 2022. The company was founded in 1965 and is headquartered in North Sydney, Australia.

How the Company Makes Money

Genworth Mortgage Insurance Australia Ltd generates revenue primarily through the sale of mortgage insurance premiums. When lenders provide loans to borrowers with less than a 20% deposit, they require mortgage insurance to mitigate risk; Genworth charges these lenders a premium based on the loan amount and the risk profile of the borrower. This premium revenue constitutes the company's principal revenue stream. Additionally, Genworth benefits from investment income derived from its reserves and surplus capital, which are invested in various financial instruments. The company may also engage in strategic partnerships with banks and financial institutions that enhance its distribution channels and market reach, contributing further to its earnings. Overall, the combination of premium income and investment returns forms the foundation of Genworth's financial performance.

Genworth Mortgage Insurance Australia Ltd Financial Statement Overview

Summary

Genworth Mortgage Insurance Australia Ltd presents a generally stable financial outlook with strengths in Gross Profit and EBITDA Margins. However, challenges include declining revenue and net income, along with negative operating cash flows. The balance sheet remains robust with low leverage, but the decrease in ROE warrants attention.

Income Statement

Genworth Mortgage Insurance Australia Ltd shows a stable revenue trend with a slight decline in the latest year. The Gross Profit Margin remains robust at 100% due to the nature of the insurance industry. However, Net Profit Margin decreased sharply from 51.1% to 44.7% in the most recent year. EBITDA Margin is strong, indicating efficient operations, although it declined recently. The decline in EBIT Margin to 0% is a concern, reflecting reduced profitability.

Balance Sheet

The company's financial position is relatively strong with a moderate Debt-to-Equity Ratio of 0.18, indicating low leverage. However, Stockholders' Equity has slightly decreased over the years, which could indicate potential risks. The Equity Ratio stands at 36.8%, reflecting a healthy proportion of equity financing. Return on Equity has declined from 24.1% to 21.4% in the latest year, indicating reduced efficiency in generating profits from equity.

Cash Flow

Genworth's Free Cash Flow has improved significantly from negative to positive, indicating better cash management. However, Operating Cash Flow was negative in the latest year, which could impact liquidity. The Free Cash Flow to Net Income Ratio is favorable, showing strong cash conversion. The absence of Operating Cash Flow to Net Income Ratio calculation due to negative Operating Cash Flow limits complete analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	559.70M	517.68M	538.29M	579.69M	372.09M	407.53M
Gross Profit	559.70M	517.68M	511.71M	466.24M	372.09M	117.68M
EBITDA	405.57M	475.98M	421.37M	303.02M	290.26M	-139.22M
Net Income	268.21M	231.54M	275.06M	186.77M	192.82M	-107.58M
Balance Sheet
Total Assets	2.87B	2.93B	3.20B	3.46B	3.91B	3.68B
Cash, Cash Equivalents and Short-Term Investments	0.00	112.38M	57.05M	23.84M	76.72M	104.56M
Total Debt	190.00M	196.52M	197.29M	191.06M	195.89M	200.10M
Total Liabilities	1.85B	1.85B	2.06B	2.26B	2.36B	2.29B
Stockholders Equity	1.02B	1.08B	1.14B	1.21B	1.56B	1.39B
Cash Flow
Free Cash Flow	145.35M	134.33M	-18.27M	75.51M	344.67M	296.06M
Operating Cash Flow	145.35M	134.43M	-18.03M	76.11M	344.67M	296.59M
Investing Cash Flow	393.92M	213.84M	397.10M	199.89M	-344.26M	-231.64M
Financing Cash Flow	-306.39M	-292.93M	-345.90M	-328.96M	-27.69M	-47.68M

Genworth Mortgage Insurance Australia Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HLI, the sentiment is Positive. The current price of 5.76 is above the 20-day moving average (MA) of 5.70, above the 50-day MA of 5.64, and above the 200-day MA of 5.07, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 64.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HLI.

Genworth Mortgage Insurance Australia Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLI	74 Outperform	AU$1.57B	5.98	25.94%	5.51%	-7.39%	30.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MYS	66 Neutral	AU$783.96M	17.50	5.92%	4.63%	26.01%	-17.55%
PPM	65 Neutral	AU$995.71M	9.98	12.11%	11.71%	-6.49%	-5.40%
JDO	56 Neutral	AU$1.95B	22.42	5.31%	―	16.78%	22.86%
LFG	50 Neutral	AU$1.28B	9.56	11.19%	11.83%	2.11%	15.71%

Genworth Mortgage Insurance Australia Ltd Corporate Events

Helia Group Enhances Governance Following Independent Review

Helia Group Limited, trading on the ASX under the symbol HLI, has completed an independent review of employee share trading activities during a specific trading window in early 2025. The review found no legal or policy breaches, but identified areas for governance improvement. Consequently, Helia’s Board has approved updates to its Trading Policy, Disclosure Committee Charter, and Board Reserved Powers to enhance transparency and accountability. These changes are part of Helia’s commitment to maintaining high standards of corporate governance.

Helia Group Limited Reports 3Q25 Results and Reaffirms Market Commitment

Helia Group Limited has submitted its 3Q25 data to the Australian Prudential Regulation Authority, reflecting a rise in gross written premium due to higher market share and increased lending volumes, although it remains below historical levels due to the impact of the Australian Government’s 5% Deposit Scheme. The company’s board has completed a comprehensive business review, reaffirming its commitment to the Australian LMI market and focusing on cost management and operational efficiencies to adapt to a shrinking market. Helia maintains a strong balance sheet and plans to explore options for returning excess capital to shareholders.

Helia Group Limited Announces Cessation of Share Rights

Helia Group Limited announced the cessation of 260,196 share rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence investor perceptions regarding the company’s ability to meet certain conditions tied to its securities.

Helia Group Limited Announces Director Change

Helia Group Limited announced the cessation of Duncan West as a director, effective 23 September 2025. The notice details Mr. West’s relevant interests in securities, which include 60,318 ordinary shares held by D & T West Pty Limited as trustee for the Ambleside Superannuation Fund. This change in directorship may impact the company’s governance structure and could have implications for stakeholders regarding future strategic decisions.