Genworth Mortgage Insurance Australia Ltd (AU:HLI)
ASX:HLI
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Genworth Mortgage Insurance Australia Ltd
(Sydney:HLI)
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Rating:78Outperform
Price Target:
AU$5.50
â–˛(1.66% Upside)
Action:ReiteratedDate:02/26/26
The score is driven by attractive valuation (low P/E and strong dividend yield) and supportive technical uptrend. Financials are solid overall due to strong profitability and very low leverage, but are tempered by multi-year revenue declines and cash-flow volatility.
Positive Factors
Profitability
High and consistent post-2020 profitability, with reported net margins roughly 32%–52%, underpins retained capital and dividend capacity. Durable underwriting profitability strengthens reserve building and allows the firm to absorb normal credit cycles without immediate capital raises, supporting long-term solvency.
Negative Factors
Multi-year revenue decline
Sustained top-line contraction over multiple years reduces the premium base that funds claims and investment float. A smaller premium pool limits scale economics, constrains long-term earnings growth, and makes it harder to rebuild reserves via earnings if claims spike or origination volumes fail to recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
High and consistent post-2020 profitability, with reported net margins roughly 32%–52%, underpins retained capital and dividend capacity. Durable underwriting profitability strengthens reserve building and allows the firm to absorb normal credit cycles without immediate capital raises, supporting long-term solvency.
Read all positive factors
Genworth Mortgage Insurance Australia Ltd (HLI) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.48B
Dividend Yield5.51%
Average Volume (3M)870.43K
Price to Earnings (P/E)6.1
Beta (1Y)0.51
Revenue Growth-7.39%
EPS Growth30.01%
CountryAU
Employees204
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.41
Shares Outstanding274,167,330
10 Day Avg. Volume865,617
30 Day Avg. Volume870,434
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)1.47
Price to Sales (P/S)3.18
P/FCF Ratio13.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.70Price Target Upside-31.61% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.58
Revenue Forecast (FY)AU$303.56M
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...
How the Company Makes Money
Genworth Mortgage Insurance Australia Ltd (HLI) primarily makes money by underwriting lenders mortgage insurance (LMI) policies on residential mortgage lending. Its main revenue stream is insurance premium income paid by or on behalf of mortgage l...
Genworth Mortgage Insurance Australia Ltd Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
82
Very Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 471.20M | 517.68M | 538.29M | 579.69M | 372.09M |
| Gross Profit | 471.20M | 517.68M | 511.71M | 466.24M | 372.09M |
| EBITDA | 362.20M | 475.98M | 421.37M | 303.02M | 290.26M |
| Net Income | 244.90M | 231.54M | 275.06M | 186.77M | 192.82M |
Balance Sheet | |||||
| Total Assets | 2.54B | 2.93B | 3.20B | 3.46B | 3.91B |
| Cash, Cash Equivalents and Short-Term Investments | 45.70M | 112.38M | 57.05M | 23.84M | 76.72M |
| Total Debt | 8.50M | 196.52M | 197.29M | 191.06M | 195.89M |
| Total Liabilities | 1.52B | 1.85B | 2.06B | 2.26B | 2.36B |
| Stockholders Equity | 1.02B | 1.08B | 1.14B | 1.21B | 1.56B |
Cash Flow | |||||
| Free Cash Flow | 108.40M | 134.33M | -18.27M | 75.51M | 344.67M |
| Operating Cash Flow | 108.40M | 134.43M | -18.03M | 76.11M | 344.67M |
| Investing Cash Flow | 324.00M | 213.84M | 397.10M | 199.89M | -344.26M |
| Financing Cash Flow | -499.10M | -292.93M | -345.90M | -328.96M | -27.69M |
Genworth Mortgage Insurance Australia Ltd Technical Analysis
Positive
5.41
Price Trends
4.95
Positive
4.90
Positive
4.70
Positive
Market Momentum
0.12
Negative
61.42
Neutral
78.47
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 5.41 is above the 20-day moving average (MA) of 4.93, above the 50-day MA of 4.95, and above the 200-day MA of 4.70, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.47 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | AU$33.90B | 13.45 | 19.29% | 4.68% | 5.93% | 14.80% | |
78 Outperform | AU$1.48B | 6.12 | 24.00% | 5.51% | -7.39% | 30.01% | |
73 Outperform | AU$17.32B | 18.10 | 9.55% | 26.88% | -0.54% | 26.37% | |
72 Outperform | AU$16.91B | 9.34 | 14.85% | 3.91% | 8.47% | 54.09% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | AU$837.79M | 9.15 | 12.70% | 11.71% | -6.49% | -5.40% | |
50 Neutral | AU$1.05B | 4.10 | 12.13% | 11.83% | 2.11% | 15.71% |
* Financial Sector Average
AU:HLI
Genworth Mortgage Insurance Australia Ltd
5.38
1.88
53.54%
AU:IAG
Insurance Australia Group Limited
7.15
-0.27
-3.61%
AU:QBE
QBE Insurance Group Limited
22.57
3.01
15.39%
AU:SUN
Suncorp Group
15.99
-2.51
-13.55%
AU:PPM
Pepper Money Ltd
1.87
0.70
60.36%
AU:LFG
Liberty Financial Group Ltd
3.45
0.83
31.78%
Genworth Mortgage Insurance Australia Ltd Corporate Events
Helia Seeks ASX Quotation for New Shares from Employee Incentive Plan
Feb 25, 2026
Helia Group Limited has applied for the quotation of 292,747 new fully paid ordinary shares on the ASX, to be issued on 2 March 2026. The new securities arise from an employee incentive scheme and will be quoted, signaling further equity-based rem...
Helia Group Seeks ASX Quotation for 1.39 Million New Shares Under Employee Scheme
Feb 24, 2026
Helia Group Limited has applied to the ASX for quotation of 1,388,519 new ordinary fully paid shares, with the securities issued on 26 February 2026 under an employee incentive scheme. The issuance expands Helia’s quoted share capital and re...
Helia issues new unquoted share rights under employee incentive scheme
Feb 24, 2026
Helia Group Limited has notified the market of the issue of 864,797 unquoted share rights under its employee incentive scheme, split across two tranches scheduled for late February and early March 2026. These share rights are not intended to be qu...
Helia outlines 2025 results and tightens guidance on investor disclosures
Feb 24, 2026
Helia Group Limited has released its full-year 2025 financial results and accompanying investor presentation, outlining statutory and non-IFRS financial information drawn from its audited income statement and balance sheet. The company stresses th...
Helia lifts profit and payouts as it reshapes strategy in shifting mortgage insurance market
Feb 24, 2026
Helia Group Limited reported a 6% rise in statutory net profit after tax to $244.9 million for 2025, with underlying profit up 12% to $247.0 million, and announced higher ordinary and special dividends reflecting its strong capital position. Manag...
Helia Releases 2026 Corporate Governance Statement
Feb 24, 2026
Helia Group Limited has released its Corporate Governance Statement dated 25 February 2026, in line with ASX Listing Rule 4.7.4 requirements. The statement, authorised by the board, outlines Helia’s governance framework and reinforces its ad...
Helia Files Appendix 4G and Updates Corporate Governance Disclosures
Feb 24, 2026
Helia Group Limited has lodged its Appendix 4G with the Australian Securities Exchange, detailing how its corporate governance disclosures align with ASX Corporate Governance Council principles for the year ended 31 December 2025. The company has ...
Helia Group declares A$0.83 half‑year dividend with March payment
Feb 24, 2026
Helia Group Limited has declared a dividend of A$0.83 per fully paid ordinary share, relating to the six‑month period ended 31 December 2025. The distribution applies to its HLI ordinary shares traded on the ASX.The company has set 10 March ...
Helia Group Releases 2025 Annual Report to ASX
Feb 24, 2026
Helia Group Limited has released its Annual Report for the financial year ended 31 December 2025, providing shareholders and the market with a detailed account of the company’s performance and activities. The publication, authorised by the B...
Helia Sets 2026 AGM Date and Director Nomination Deadline
Feb 19, 2026
Helia Group Limited has scheduled its 2026 Annual General Meeting for 7 May 2026, and set 3 March 2026 as the closing date for nominations from individuals seeking election as directors at that meeting. The timetable signals the start of HeliaR...
Helia Sets Date for Full-Year 2025 Results and Investor Briefing
Jan 29, 2026
Helia Group Limited has announced that it will release its financial results for the full year ended 31 December 2025 to the Australian Securities Exchange before the market opens on 25 February 2026. The company will host a conference call and we...
Helia Group Finalises $79m On-Market Share Buy-Back
Jan 1, 2026
Helia Group Limited has completed its on-market share buy-back program, acquiring a total of 19,266,782 ordinary fully paid shares for approximately AUD 79.25 million. The conclusion of this buy-back, first notified in May 2024 and now confirmed a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.