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Genworth Financial Inc (GNW)
:GNW
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Genworth Financial
(NYSE:GNW)
64Neutral
Genworth Financial (GNW) vs. S&P 500 (SPY)
Market Cap
$2.71B
Dividend YieldN/A
Average Volume (3M)6.28M
Price to Earnings (P/E)9.7
Beta (1Y)0.60
Revenue Growth4.06%
EPS Growth10092.54%
CountryUS
Employees2,960
SectorFinancial
Sector Strength86
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.67
Shares Outstanding415,879,360
10 Day Avg. Volume7,814,589
30 Day Avg. Volume6,282,507
Financial Highlights & Ratios
PEG Ratio0.00096
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)26.90
P/FCF Ratio27.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside22.32% Upside
Rating ConsensusHold
Number of Analyst Covering1
Genworth Financial Business Overview & Revenue Model
Company DescriptionGenworth Financial, Inc. provides insurance products in the United States and internationally. The company operates in three segments: Enact, U.S. Life Insurance, and Runoff. The Enact segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and pool mortgage insurance products. The U.S. Life Insurance segment offers long-term care insurance products; and service traditional life insurance and fixed annuity products in the United States. The Runoff segment includes variable annuity, variable life insurance, and corporate-owned life insurance, as well as funding agreements. It distributes its products through sales force, in-house sales representatives, and digital marketing programs. The company was founded in 1871 and is headquartered in Richmond, Virginia.
How the Company Makes MoneyGenworth Financial generates revenue through the premiums received from its various insurance products. The company derives income by underwriting and selling life, long-term care, and mortgage insurance policies to customers. Premiums are collected periodically, and Genworth invests these funds to generate investment income, which further contributes to its earnings. The company's mortgage insurance segment is particularly significant, providing insurance to lenders against borrower default, which is especially crucial during economic downturns. Additionally, Genworth may form partnerships with financial institutions to expand its distribution network, thereby enhancing its revenue streams. Investment returns on the company's portfolio also play a critical role in its profitability, as the company allocates a portion of premiums into various financial instruments to ensure steady growth and returns.
Genworth Financial Financial Statement Overview
Summary
Genworth Financial has a stable revenue stream with a strong gross profit margin indicating efficient cost management. However, the volatility in net profit margins and decreasing free cash flow highlight profitability challenges. The balance sheet is strong with low debt and high equity, yet the fluctuating return on equity suggests inconsistency in profit generation.Income Statement
Genworth Financial's revenue has been relatively stable over the years, with a slight decline in recent periods. The company maintains a strong gross profit margin, indicating efficient cost management. However, the net profit margin has shown volatility, with a significant dip in the latest year, signaling potential profitability challenges.60
Neutral
Balance Sheet
The company demonstrates a strong balance sheet with low debt levels and high stockholders' equity, resulting in an excellent debt-to-equity ratio. The equity ratio remains robust, indicating financial stability. However, the return on equity has fluctuated, suggesting inconsistency in generating profits from equity investments.75
Positive
Cash Flow
Genworth Financial's cash flow statements reveal challenges in maintaining consistent free cash flow growth. The operating cash flow to net income ratio indicates strong operational cash generation relative to net income, but the free cash flow has decreased significantly, reflecting potential issues in cash management or capital expenditures.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.29B | 7.49B | 7.51B | 7.83B | 8.66B | Gross Profit |
| 7.29B | 7.49B | 7.51B | 7.83B | 8.66B | EBIT |
| 437.00M | 199.00M | 739.00M | 1.17B | 448.00M | EBITDA |
| 437.00M | 461.00M | 1.52B | 1.39B | 1.17B | Net Income Common Stockholders |
| 299.00M | 76.00M | 609.00M | 850.00M | 761.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.72B | 2.21B | 61.39B | 74.50B | 80.57B | Total Assets |
| 86.87B | 90.82B | 86.44B | 99.17B | 105.75B | Total Debt |
| 1.52B | 1.58B | 1.61B | 1.90B | 3.55B | Net Debt |
| -530.00M | -631.00M | -59.78B | -72.60B | -77.02B | Total Liabilities |
| 77.44B | 82.48B | 75.70B | 1.88B | 3.53B | Stockholders Equity |
| 8.49B | 7.48B | 9.98B | 15.51B | 15.32B |
| Cash Flow | Free Cash Flow | |||
| 88.00M | 597.00M | 1.05B | 437.00M | 2.23B | Operating Cash Flow |
| 88.00M | 597.00M | 1.05B | 437.00M | 1.96B | Investing Cash Flow |
| 861.00M | 1.26B | 733.00M | 896.00M | -1.15B | Financing Cash Flow |
| -1.11B | -1.44B | -1.55B | -2.42B | -1.51B |
Genworth Financial Technical Analysis
Negative
6.54
Price Trends
6.90
Negative
7.07
Negative
6.88
Negative
Market Momentum
0.07
Negative
55.90
Neutral
74.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNW, the sentiment is Negative. The current price of 6.54 is below the 20-day moving average (MA) of 6.88, below the 50-day MA of 6.90, and below the 200-day MA of 6.88, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 74.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNW.
Genworth Financial Risk Analysis
Genworth Financial disclosed 40 risk factors in its most recent earnings report. Genworth Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Genworth Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.13B | 6.06 | 9.49% | 4.08% | 3.55% | 8.91% | |
70 Outperform | $4.91B | 7.67 | 18.12% | 2.36% | 27.35% | ― | |
68 Neutral | $5.07B | 1.62 | 43.24% | 6.04% | 47.95% | ― | |
66 Neutral | $3.66B | 9.77 | 17.14% | 1.75% | 7.83% | 55.84% | |
64 Neutral | $13.21B | 9.26 | 9.39% | 4.87% | 16.14% | -8.87% | |
64 Neutral | $2.71B | 9.71 | 3.87% | ― | 4.06% | 10092.54% | |
52 Neutral | $2.75B | 9.25 | 7.84% | ― | 14.74% | ― |
* Financial Sector Average
Performance Comparison
GNW
Genworth Financial
6.54
0.63
10.66%
CNO
CNO Financial
36.79
11.85
47.51%
LNC
Lincoln National
29.50
2.79
10.45%
BHF
Brighthouse Financial
47.82
-0.14
-0.29%
JXN
Jackson Financial Incorporation
72.04
10.83
17.69%
FG
F&G Annuities & Life Inc
33.51
-2.45
-6.81%
Genworth Financial Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -10.66% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as debt reduction, Enact's strong performance, and expansion of the CareScout network, which were offset by challenges like the fourth-quarter net loss and losses in the long-term care segment. The sentiment leans slightly positive due to the strategic accomplishments and future growth potential.Highlights
Debt Reduction Achievement
Genworth reduced its holding company debt to $790 million by the end of 2024, down from $856 million at the end of 2023 and significantly down from $4.2 billion in 2013.
Enact's Strong Performance
Enact contributed $137 million to Genworth's fourth-quarter adjusted operating income and $585 million for the full year, marking a record performance.
Share Repurchase Program Success
Genworth reduced its outstanding shares by 18% since May 2022, spending $565 million on share repurchases.
CareScout Network Expansion
CareScout Quality Network expanded to cover 86% of the aged 65-plus U.S. population, reaching nearly 500 providers by the end of 2024.
MYRAP Progress
The net present value of the MYRAP increased by $3.2 billion in 2024, achieving 87% of the MYRAP's total projected value.
Lowlights
Fourth Quarter Net Loss
Genworth reported a net loss of $1 million for the fourth quarter of 2024.
Long-Term Care Segment Losses
The LTC segment reported an adjusted operating loss of $104 million in the fourth quarter due to liability remeasurement loss and assumption updates.
Statutory Loss in U.S. Life Insurance
The U.S. life insurance companies experienced an estimated pretax statutory loss of $33 million for the fourth quarter.
Company Guidance
During Genworth Financial's fourth-quarter 2024 earnings call, the company provided several key financial metrics and strategic insights. Genworth reported a net loss of $1 million for the fourth quarter, with an adjusted operating income of $15 million, largely driven by Enact, which contributed $137 million. For the full year, Genworth's net income was $299 million, or $0.68 per share, with an adjusted operating income of $273 million. Enact's performance was strong, providing a record $585 million to adjusted operating income. The company achieved a total estimated pretax statutory loss of $33 million for its U.S. life insurance companies in the fourth quarter, while generating a statutory pretax income of $378 million for the full year. Genworth continued its debt reduction journey, reducing holding company debt to $790 million by the end of 2024. The company also highlighted progress in its multiyear rate action plan (MYRAP), achieving 87% of its total projected value, contributing $31.2 billion in net present value to its legacy business since 2012. Additionally, Genworth has invested $565 million in share repurchases since May 2022, reducing outstanding shares by 18%. The CareScout Quality Network expanded significantly, achieving 86% coverage of the U.S. aged 65-plus population by the end of 2024, with nearly 500 providers in the network. Genworth plans to invest $75 million in CareScout Insurance Company later in 2025, aiming to drive future growth and shareholder value.Genworth Financial Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Genworth Financial Expands Board with New Director
Positive
Mar 19, 2025
On March 19, 2025, Genworth Financial announced the election of Steven C. Van Wyk as an independent director, expanding the Board to 10 members. Van Wyk’s extensive experience in technology and leadership roles in banking and insurance is expected to enhance Genworth’s strategic operations, particularly in implementing AI and digital technologies to improve customer service and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.