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Genworth Mortgage Insurance Australia Ltd (AU:HLI)
ASX:HLI

Genworth Mortgage Insurance Australia Ltd (HLI) AI Stock Analysis

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AU

Genworth Mortgage Insurance Australia Ltd

(Sydney:HLI)

Rating:78Outperform
Price Target:
AU$6.00
▲(11.11%Upside)
The overall score is driven by strong technical indicators and a favorable valuation, supported by solid financial performance despite some challenges. The bullish technical outlook and attractive valuation are the most significant factors, with financial stability providing additional support.
Positive Factors
Capital Position
HLI's capital position remains strong, with PCA coverage of 2.08x.
Earnings Forecast
Revised FY24E/25/FY26E reported EPS by +4.9%/+9.5%/+17.7%.
Negative Factors
Financial Performance
HLI's 1H24 underlying NPAT was down -22% on pcp to A$107 mn.

Genworth Mortgage Insurance Australia Ltd (HLI) vs. iShares MSCI Australia ETF (EWA)

Genworth Mortgage Insurance Australia Ltd Business Overview & Revenue Model

Company DescriptionHelia 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 MoneyGenworth Mortgage Insurance Australia Ltd generates revenue primarily through the issuance of lenders mortgage insurance policies. The company charges premiums to lenders who seek to mitigate the risk of borrower default on home loans. These premiums can be paid upfront or capitalized into the loan amount, depending on the arrangement with the borrower. In addition to premiums, Genworth may also earn investment income on the premiums collected, which are invested in a diversified portfolio. Key factors contributing to its earnings include the volume of high loan-to-value ratio loans, housing market conditions, interest rates, and regulatory changes. The company also benefits from strategic partnerships with major banks and financial institutions across Australia, which help drive the demand for its LMI products.

Genworth Mortgage Insurance Australia Ltd Financial Statement Overview

Summary
Genworth Mortgage Insurance Australia Ltd shows stable revenue with strong Gross Profit and EBITDA Margins, but faces challenges with declining net income and negative operating cash flows. The balance sheet is robust with low leverage, though decreased ROE is a concern.
Income Statement
72
Positive
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
75
Positive
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
68
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
525.10M517.68M538.29M477.62M372.09M449.10M
Gross Profit
538.29M517.68M538.29M477.62M372.09M449.10M
EBIT
478.61M328.54M478.61M277.56M285.23M-144.08M
EBITDA
-83.72M475.98M421.37M303.02M290.26M-139.22M
Net Income Common Stockholders
275.06M231.54M275.06M186.77M192.82M-107.58M
Balance SheetCash, Cash Equivalents and Short-Term Investments
57.05M112.38M57.05M23.84M76.72M104.56M
Total Assets
3.20B2.93B3.20B3.46B3.91B3.68B
Total Debt
197.29M196.52M197.29M191.06M195.89M200.10M
Net Debt
140.24M84.14M140.24M167.22M119.17M95.55M
Total Liabilities
2.06B1.85B2.06B2.26B2.36B2.29B
Stockholders Equity
1.14B1.08B1.14B1.21B1.56B1.39B
Cash FlowFree Cash Flow
-18.27M134.33M-18.27M75.51M344.67M296.06M
Operating Cash Flow
-18.03M134.43M-18.03M76.11M344.67M296.59M
Investing Cash Flow
397.10M213.84M397.10M199.89M-344.26M-231.64M
Financing Cash Flow
-345.90M-292.93M-345.90M-328.96M-27.69M-47.68M

Genworth Mortgage Insurance Australia Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.40
Price Trends
50DMA
4.91
Positive
100DMA
4.72
Positive
200DMA
4.23
Positive
Market Momentum
MACD
0.11
Negative
RSI
65.27
Neutral
STOCH
91.78
Negative
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 5.4 is above the 20-day moving average (MA) of 5.21, above the 50-day MA of 4.91, and above the 200-day MA of 4.23, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.27 is Neutral, neither overbought nor oversold. The STOCH value of 91.78 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUHLI
78
Outperform
€1.46B6.7020.91%6.43%-6.90%-5.67%
64
Neutral
$12.87B9.767.85%78.04%12.07%-7.94%
DEHM3
AUJDO
66
Neutral
AU$1.75B26.804.09%31.62%-22.24%
AUMYS
66
Neutral
AU$710.18M13.777.25%5.00%14.46%-6.87%
AUPPM
65
Neutral
AU$747.95M7.5211.75%6.02%3.70%-10.93%
AULFG
56
Neutral
AU$965.45M7.8210.43%3.14%10.37%-9.02%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HLI
Genworth Mortgage Insurance Australia Ltd
5.40
1.83
51.26%
DE:HM3
Resimac Group Limited
AU:PPM
Pepper Money Ltd
1.68
0.46
37.70%
AU:JDO
Judo Capital Holdings Limited
1.56
0.20
14.71%
AU:LFG
Liberty Financial Group Ltd
3.18
-0.22
-6.47%
AU:MYS
Mystate Limited
4.20
0.59
16.34%

Genworth Mortgage Insurance Australia Ltd Corporate Events

Helia Group Announces Leadership Transition Amid Industry Changes
Jun 10, 2025

Helia Group Limited announced a leadership transition with CEO Pauline Blight-Johnston stepping down after over five years, during which she significantly enhanced shareholder returns. Michael Cant, the current CFO, will serve as interim CEO starting July 1, 2025, as the company navigates changes in the LMI industry and customer portfolio. This transition aims to align leadership with the evolving market landscape, ensuring continued success and stability for stakeholders.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Helia Group Limited Announces Quotation of New Securities
Jun 4, 2025

Helia Group Limited has announced the application for quotation of 32,064 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code HLI. This move is part of an employee incentive scheme, indicating the company’s efforts to incentivize and retain talent, potentially impacting its operational efficiency and market positioning positively.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Macquarie Group Ceases Substantial Holding in Helia Group
May 27, 2025

Macquarie Group Limited, along with its controlled bodies corporate, has ceased to be a substantial holder in Helia Group Limited. This change in substantial holding could impact the voting power and influence Macquarie Group previously held in Helia Group, potentially affecting strategic decisions and stakeholder dynamics within the company.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

CBA Ceases Substantial Holding in Helia Group Ltd
May 22, 2025

Commonwealth Bank of Australia (CBA) and its related bodies corporate have ceased to be substantial holders in Helia Group Ltd as of May 21, 2025. This change in substantial holding status could impact the voting securities and influence within Helia Group Ltd, potentially affecting the company’s stakeholder dynamics and market positioning.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

CBA Acquires Substantial Stake in Helia Group Ltd
May 21, 2025

Commonwealth Bank of Australia (CBA) and its related bodies have become substantial holders in Helia Group Ltd, acquiring a 5% voting power through fully paid ordinary shares. This acquisition signifies a strategic move by CBA to potentially influence Helia Group’s decision-making processes, reflecting CBA’s interest in expanding its influence within the financial sector. The acquisition could impact Helia Group’s operations and its stakeholders, as CBA’s involvement may bring changes in governance or strategic direction.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

CBA Ceases Substantial Holding in Helia Group Ltd
May 20, 2025

Genworth Mortgage Insurance Australia Ltd has announced that the Commonwealth Bank of Australia (CBA) and its related entities have ceased to be substantial holders in Helia Group Ltd as of May 19, 2025. This change in substantial holding could impact the voting dynamics and strategic decisions within Helia Group Ltd, potentially affecting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Macquarie Group Becomes Substantial Holder in Helia Group
May 19, 2025

Macquarie Group Limited and its controlled entities have become substantial holders in Helia Group Limited as of May 14, 2025. This development grants Macquarie Group significant voting power and control over a substantial number of shares, potentially impacting Helia Group’s decision-making processes and shareholder dynamics.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

CBA Acquires Substantial Holding in Helia Group Ltd
May 16, 2025

Genworth Mortgage Insurance Australia Ltd has announced that the Commonwealth Bank of Australia (CBA) and its related bodies corporate have become substantial holders in Helia Group Ltd, holding a total of 13,711,621 fully paid ordinary shares, which represents a 5.03% voting power. This development indicates a significant investment and potential influence by CBA in Helia Group Ltd, which could impact the company’s strategic decisions and market positioning, as well as affect stakeholders’ interests.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Helia Group to Redeem A$190 Million Subordinated Notes
May 15, 2025

Helia Group Limited announced the redemption of its A$190 million Floating Rate Subordinated Notes due 2030, which will occur on 3 July 2025. This move will adjust the company’s Prescribed Capital Amount (PCA) coverage ratio from 1.97 times to a pro forma 1.74 times, indicating a strategic financial management decision aimed at maintaining a strong balance sheet and capital position.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Helia Group Limited Updates Director’s Share Rights
May 14, 2025

Helia Group Limited has announced a change in the director’s interest notice for Pauline Blight-Johnston. The announcement details the issuance of 238,259 Share Rights to Blight-Johnston under the Helia Group Limited Share Rights Plan, following shareholder approval at the company’s recent Annual General Meeting. This change increases her total share rights in the company, reflecting an alignment with shareholder interests and potentially impacting her influence within the company.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Helia Group Limited Announces Issuance of Unquoted Equity Securities
May 14, 2025

Helia Group Limited, operating under the ASX issuer code HLI, has announced the issuance and conversion of unquoted equity securities, specifically 238,259 share rights, under an employee incentive scheme. This issuance, dated May 12, 2025, reflects the company’s ongoing efforts to incentivize and retain its workforce, potentially impacting its operational dynamics and stakeholder interests by aligning employee interests with company performance.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Macquarie Group Ceases Substantial Holding in Helia Group
May 14, 2025

Macquarie Group Limited, along with its controlled entities, has announced that it has ceased to be a substantial holder in Helia Group Limited. This change in substantial holding indicates a shift in Macquarie’s investment strategy, potentially affecting its influence in Helia Group’s decision-making processes and signaling a possible reallocation of resources or focus within its investment portfolio.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Macquarie Group Becomes Substantial Holder in Helia Group
May 13, 2025

Macquarie Group Limited has become a substantial holder in Helia Group Limited, indicating a significant investment and control over voting rights in the company. This development highlights Macquarie’s strategic interest in Helia Group, potentially impacting the company’s governance and market positioning.

The most recent analyst rating on (AU:HLI) stock is a Sell with a A$3.60 price target. To see the full list of analyst forecasts on Genworth Mortgage Insurance Australia Ltd stock, see the AU:HLI Stock Forecast page.

Helia Group Faces ‘First Strike’ on Remuneration Report at 2025 AGM
May 7, 2025

Helia Group Limited, operating under the ASX ticker HLI, held its 2025 Annual General Meeting where several resolutions were voted on. Notably, the resolution on the 2024 remuneration report faced significant opposition, with more than 25% of votes against it, marking a ‘first strike’ under Australian corporate law. This outcome could have implications for the company’s governance and stakeholder relations.

Helia Group Releases Proxy Vote Summary Ahead of 2025 AGM
May 6, 2025

Helia Group Limited, operating under the ASX ticker HLI, has released a summary of proxy and direct votes ahead of its 2025 Annual General Meeting. The announcement, authorized by the Disclosure Committee, outlines the voting results for several key resolutions, including the remuneration report, share rights for the CEO, potential share buy-back, and the election and re-election of directors. These results are crucial for stakeholders as they reflect shareholder sentiment and influence the company’s governance and strategic decisions.

Helia Group Reports Strong 2024 Financial Performance and Strategic Advancements
May 6, 2025

Helia Group Limited reported a strong financial performance in 2024, with a statutory net profit after tax of $232 million and a 6% increase in Gross Written Premium. The company has successfully implemented strategic initiatives, including a digital onboarding system and technology integrations, to enhance customer service and operational efficiency. Despite challenges such as high interest rates and the Federal Government’s Home Guarantee Scheme, Helia maintained a robust market position, retaining 100% of customer contract renewals and achieving a high Net Promoter Score.

Helia Group Limited Reports Strong 2024 Performance Amidst Future Challenges
May 6, 2025

Helia Group Limited reported a strong performance in 2024, with increased profitability, customer satisfaction, and market share. Despite the potential loss of a major contract with CBA and changes in government schemes, Helia remains focused on navigating these challenges and leveraging opportunities. The company facilitated loans for over 31,000 homebuyers, maintained a robust capital position, and returned $345 million to shareholders through dividends and share buy-backs. Helia’s sustainability efforts include maintaining net-zero carbon emissions and supporting community initiatives.

Helia Group Reports Strong 1Q25 Performance Amid Policy Concerns
May 1, 2025

Helia Group Limited has submitted its 1Q25 data to the Australian Prudential Regulation Authority, showing a notable increase in gross written premium due to higher industry housing loans and market share, despite challenges from the Home Guarantee Scheme and lender self-insurance. The company is engaging with the government regarding proposed changes to the Home Guarantee Scheme, which it believes could negatively impact the financial sector’s stability and accessibility to home ownership, while maintaining its commitment to providing leading LMI services.

Helia Group Limited Announces Registry Office Relocation
Apr 14, 2025

Helia Group Limited has announced a change in the address of its registry office in Sydney, effective from April 14, 2025. This relocation of the registry to a new address at Liberty Place is part of the company’s operational updates, though it does not affect telephone numbers or postal addresses, indicating a seamless transition for stakeholders.

Helia Group Limited Updates on Market Buy-Back Program
Apr 1, 2025

Helia Group Limited, trading under the ASX code HLI, has announced an update regarding its ongoing on-market buy-back program. As of April 2, 2025, the company has repurchased a total of 19,266,782 ordinary fully paid securities, including 20,911 bought back on the previous day. This buy-back initiative is part of Helia’s strategy to manage its capital structure effectively, potentially enhancing shareholder value and optimizing its financial position.

Helia Group Limited Announces 2025 AGM Details
Mar 25, 2025

Helia Group Limited, operating under the ticker ASX:HLI, has announced its 2025 Annual General Meeting (AGM) to be held on May 7, 2025. The meeting will be conducted as a hybrid event, allowing shareholders to participate either virtually or in person at the company’s North Sydney office. This announcement underscores Helia’s commitment to engaging with its shareholders through accessible means, reflecting a modern approach to corporate governance.

Helia Group Director Acquires 10,000 Shares
Mar 23, 2025

Helia Group Limited announced a change in the director’s interest, with JoAnne Stephenson acquiring 10,000 ordinary shares in the company through an on-market trade. This acquisition, valued at $48,913.44, reflects a strategic move within the company’s leadership, potentially impacting stakeholder perceptions and the company’s market positioning.

Helia Faces Potential Non-Renewal of CBA Contract Amid Strategic Adjustments
Mar 23, 2025

Helia Group Limited announced that the Commonwealth Bank of Australia (CBA) has entered into exclusive negotiations with another provider for Lenders Mortgage Insurance (LMI) services, which may lead to the non-renewal of Helia’s contract with CBA after December 2025. Despite this development, Helia plans to maintain its high service standards and adapt to the anticipated reduction in Gross Written Premium (GWP) by exploring new partnership opportunities and managing capital effectively, ensuring continued support for Australia’s home buyers and lenders.

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.