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Genworth Financial Inc (GNW)
NYSE:GNW
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Genworth Financial
(NYSE:GNW)
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Rating:60Neutral
Price Target:
$9.00
▲(6.51% Upside)
The overall stock score of 60 reflects a company with stable financial management but facing challenges in revenue growth and cash flow generation. Technical indicators suggest a neutral market sentiment, while valuation metrics indicate a moderate valuation. The earnings call highlighted strategic initiatives and liquidity strength but also pointed out ongoing challenges in certain segments.
Genworth Financial (GNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.50B
Dividend YieldN/A
Average Volume (3M)4.47M
Price to Earnings (P/E)19.3
Beta (1Y)0.75
Revenue Growth1.41%
EPS Growth150.35%
CountryUS
Employees2,960
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.04
Shares Outstanding410,433,930
10 Day Avg. Volume4,134,123
30 Day Avg. Volume4,469,997
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.36
Price to Sales (P/S)0.42
P/FCF Ratio34.47
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit15.28
Enterprise Value/Ebitda10.00
Forecast
1Y Price Target
$10.00Price Target Upside18.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Genworth Financial Business Overview & Revenue Model
Company DescriptionGenworth Financial, Inc. (GNW) is a leading insurance company based in the United States, primarily focused on providing long-term care insurance, mortgage insurance, and life insurance products. Established in 1871, the company operates through various segments, including Life Insurance, Long-Term Care Insurance, and Mortgage Insurance, catering to a diverse clientele ranging from individuals to financial institutions. Genworth aims to address the evolving needs of its customers by offering innovative solutions and financial products designed to provide security and peace of mind for their future.
How the Company Makes MoneyGenworth Financial generates revenue primarily through premiums collected from its insurance products, including life insurance and long-term care insurance. The company also earns significant income from mortgage insurance premiums, where it provides coverage to lenders against borrower defaults. Additionally, investment income from the management of its insurance reserves contributes to its earnings. Strategic partnerships with lenders and financial institutions enhance their mortgage insurance segment, while ongoing adjustments to pricing and underwriting practices help maintain profitability. Overall, Genworth's revenue model is anchored in a combination of premium income and investment returns, supported by a focus on risk management and product innovation.
Genworth Financial Earnings Call Summary
Earnings Call Date:Oct 05, 2025
(Q3-2025)
| Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, particularly around Enact's performance, share repurchase strategies, and CareScout's expansion. However, challenges remain with ongoing losses in the LTC Insurance segment and uncertainty in the AXA litigation.Q3-2025 Updates
Positive Updates
Strong Net Income and Liquidity
Genworth reported a solid net income of $116 million and ended the quarter with a healthy liquidity position, holding $254 million of cash and liquid assets.
Enact's Performance and Capital Returns
Enact contributed $134 million to Genworth's adjusted operating income. Genworth received $110 million of capital returns from Enact in the third quarter, with a total of $1.2 billion received since its IPO in 2021.
Share Repurchase Strategy
Genworth announced a new $350 million repurchase authorization, reflecting confidence in its strategy and financial condition. $76 million of shares were repurchased in the third quarter.
CareScout Expansion and Achievements
CareScout Quality Network now includes over 700 providers with more than 950 locations, exceeding the original match goal for the year with over 3,000 matches expected in 2025. The acquisition of Seniorly enhances the network significantly.
Negative Updates
Long-Term Care Insurance Losses
The LTC Insurance segment reported an adjusted operating loss of $100 million, driven by lower terminations and higher benefit utilization. Statutory pretax results for the U.S. life insurance companies showed a loss of $12 million for the quarter.
AXA Litigation Uncertainty
Santander was granted permission to appeal the judgment related to the AXA litigation, potentially delaying expected recoveries of approximately $750 million.
Company Guidance
During Genworth Financial's Third Quarter 2025 Earnings Conference Call, the company reported a solid net income of $116 million, with adjusted operating income of $17 million or $0.04 per share. Enact, the mortgage insurance subsidiary, significantly contributed $134 million to Genworth's adjusted operating income. The estimated pretax statutory income for U.S. life insurance companies was roughly $68 million year-to-date through the end of the third quarter. Genworth maintains a strong liquidity position, holding $254 million in cash and liquid assets. The company is focused on three strategic priorities: creating shareholder value through Enact's market value and capital returns, advancing self-sustaining and customer-centric legacy businesses, and driving future growth with CareScout. In the third quarter, Genworth received $110 million in capital returns from Enact, totaling $1.2 billion since its IPO in 2021, and announced a new $350 million share repurchase authorization. Genworth also made progress with its multiyear rate action plan, achieving $31.8 billion in net present value since 2012, and secured $44 million in gross incremental premium approvals. CareScout has expanded its Quality Network, now covering over 95% of the U.S. population aged 65 and older, and facilitated over 2,500 matches between LTC policyholders and providers year-to-date through October.Genworth Financial Financial Statement Overview
Summary
Genworth Financial faces challenges with declining revenues and profitability, as reflected in its income statement. The balance sheet remains strong with low leverage, but profitability metrics like ROE have weakened. Cash flow generation is a concern, with significant declines in free cash flow growth. Overall, while the company maintains a stable financial position, it needs to address revenue growth and cash flow generation to improve its financial health.Income Statement
Genworth Financial's income statement reveals a mixed performance. The company has experienced declining revenue over the past few years, with a negative revenue growth rate of -15.6% in the TTM. Margins have also been under pressure, with the net profit margin decreasing to 2.68% in the TTM from 4.19% in 2024. However, the company maintains a reasonable gross profit margin of 53.4% in the TTM, indicating some operational efficiency.55
Neutral
Balance Sheet
The balance sheet shows a stable financial position with a low debt-to-equity ratio of 0.17 in the TTM, reflecting prudent financial management. However, the return on equity has decreased to 2.20% in the TTM, indicating lower profitability on shareholders' equity. The equity ratio remains healthy, suggesting a solid capital structure.65
Positive
Cash Flow
Cash flow analysis indicates challenges, with a significant decline in free cash flow growth of -43.7% in the TTM. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio remains strong at 1.0, indicating that the company is generating cash equivalent to its net income.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.10B | 7.14B | 7.37B | 7.40B | 7.60B | 8.21B |
| Gross Profit | 377.00M | 558.00M | 304.00M | 1.37B | 1.05B | 1.05B |
| EBITDA | 576.00M | 710.00M | 421.00M | 1.47B | 1.27B | 1.12B |
| Net Income | 220.00M | 299.00M | 76.00M | 916.00M | 850.00M | 178.00M |
Balance Sheet | ||||||
| Total Assets | 88.49B | 86.87B | 90.82B | 89.71B | 99.17B | 105.75B |
| Cash, Cash Equivalents and Short-Term Investments | 48.15B | 7.72B | 49.00B | 48.38B | 62.05B | 66.44B |
| Total Debt | 0.00 | 1.52B | 1.58B | 1.61B | 1.90B | 3.40B |
| Total Liabilities | 78.67B | 77.44B | 82.48B | 81.33B | 82.91B | 89.93B |
| Stockholders Equity | 8.81B | 8.49B | 7.48B | 7.63B | 15.51B | 15.32B |
Cash Flow | ||||||
| Free Cash Flow | 154.00M | 88.00M | 597.00M | 1.05B | 437.00M | 2.23B |
| Operating Cash Flow | 154.00M | 88.00M | 597.00M | 1.05B | 437.00M | 1.96B |
| Investing Cash Flow | 688.00M | 861.00M | 1.26B | 733.00M | 896.00M | -1.15B |
| Financing Cash Flow | -862.00M | -1.11B | -1.44B | -1.55B | -2.42B | -1.51B |
Genworth Financial Technical Analysis
Positive
8.45
Price Trends
8.66
Negative
8.37
Positive
7.67
Positive
Market Momentum
-0.05
Positive
46.61
Neutral
31.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNW, the sentiment is Positive. The current price of 8.45 is below the 20-day moving average (MA) of 8.48, below the 50-day MA of 8.66, and above the 200-day MA of 7.67, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 31.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNW.
Genworth Financial Risk Analysis
Genworth Financial disclosed 37 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.75B | 4.48 | 16.27% | ― | 27.71% | ― | |
74 Outperform | $4.07B | 9.08 | 10.12% | 2.91% | -4.58% | ― | |
72 Outperform | $3.93B | 14.42 | 11.12% | 1.60% | -1.61% | 15.79% | |
70 Outperform | $7.58B | 3.55 | 21.66% | 4.39% | 35.76% | 636.97% | |
69 Neutral | $6.29B | 12.65 | 5.50% | 3.36% | 24.94% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $3.50B | 19.28 | 2.86% | ― | 1.41% | 150.35% |
* Financial Sector Average
GNW
Genworth Financial
8.43
0.66
8.49%
CNO
CNO Financial
39.77
0.53
1.35%
LNC
Lincoln National
39.38
5.85
17.45%
BHF
Brighthouse Financial
65.53
13.79
26.65%
JXN
Jackson Financial Incorporation
91.82
-6.58
-6.69%
FG
F&G Annuities & Life Inc
30.72
-16.46
-34.89%
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.