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Genworth Financial
(NYSE:GNW)
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Rating:63Neutral
Price Target:
$10.50
▲(5.85% Upside)
Action:Reiterated
Date:08/21/26
GNW’s score is driven primarily by improving financial momentum (rebounding revenue, stronger gross margin, and better cash flow) and a constructive technical trend. These positives are tempered by modest profitability/low ROE, a middling valuation profile (P/E ~18 with no dividend yield provided), and earnings-call risks tied to closed-block volatility, CareScout execution/burn, and liquidity constraints.
Positive Factors
Enact capital generation and solvency
Enact provides a durable source of capital through strong mortgage-insurance execution and excess regulatory resources. Expected distributions can fund parent needs, strategic investment and shareholder returns while the solvency buffer supports resilience.
Negative Factors
Closed-block long-term-care losses
Legacy long-term-care obligations remain a durable source of earnings volatility and reserve risk. Adverse actual-to-expected experience could require larger future remeasurements or additional risk-management actions, obscuring the performance of the mortgage-insurance franchise.
Read all positive and negative factors
Positive Factors
Negative Factors
Enact capital generation and solvency
Enact provides a durable source of capital through strong mortgage-insurance execution and excess regulatory resources. Expected distributions can fund parent needs, strategic investment and shareholder returns while the solvency buffer supports resilience.
Read all positive factors
Genworth Financial (GNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.74B
Dividend YieldN/A
Average Volume (3M)3.17M
Price to Earnings (P/E)18.1
Beta (1Y)0.64
Revenue Growth-0.68%
EPS Growth19.26%
CountryUS
Employees3,100
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.55
Shares Outstanding377,851,040
10 Day Avg. Volume3,230,704
30 Day Avg. Volume3,166,721
Financial Highlights & Ratios
PEG Ratio-0.81
Price to Book (P/B)0.42
Price to Sales (P/S)0.58
P/FCF Ratio11.29
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.00Price Target Upside20.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.09
Revenue Forecast (FY)N/A
Genworth Financial Business Overview & Revenue Model
Company Description
Genworth Financial, Inc., together with its subsidiaries, provides mortgage and long-term care insurance products in the United States. It operates through two segments: Enact and Closed Block. The company offers primary mortgage, and mortgage ins...
How the Company Makes Money
Genworth primarily makes money through its mortgage insurance businesses by (1) charging insurance premiums on mortgage insurance policies written on residential mortgage loans and (2) earning investment income on the invested assets (the investme...
Genworth Financial Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong execution and clear progress on strategic priorities—notably Enact's robust underwriting results, sizable capital returns, disciplined share repurchases, and tangible CareScout network expansion—while also acknowledging meaningful near-term headwinds from closed-block GAAP losses (A-to-E remeasurements), ongoing CareScout investment burn with matches pacing below target, and constrained holding-company liquidity. Overall, the positives (steady cash generation from Enact, committed capital allocation, and strategic growth investments) offset the acknowledged risks, but the company faces execution and volatility risks in closed-block experience and scaling CareScout.Positive Updates
Strong Enact Performance and Capital Returns
Enact delivered adjusted operating income of $143 million to Genworth in Q2 and returned $103 million of capital to Genworth during the quarter. Enact now expects to return $550–$600 million in 2026 (Genworth share ~ $445–$485 million based on ~81% ownership). Enact's estimated PMIER sufficiency ratio remained strong at 161%, approximately $1.9 billion above requirements.
Negative Updates
Closed Block GAAP Loss and A-to-E Experience
The Closed Block segment reported an adjusted operating loss of $110 million in Q2 driven by a pretax A-to-E (actual-to-expected) liability remeasurement loss of $127 million, primarily in LTC. Management noted H1 2026 A-to-E losses have trended above the full-year expectation of ~ $300 million and cautioned full-year A-to-E losses could be higher if trends continue.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Enact Performance and Capital Returns
Enact delivered adjusted operating income of $143 million to Genworth in Q2 and returned $103 million of capital to Genworth during the quarter. Enact now expects to return $550–$600 million in 2026 (Genworth share ~ $445–$485 million based on ~81% ownership). Enact's estimated PMIER sufficiency ratio remained strong at 161%, approximately $1.9 billion above requirements.
Read all positive updates
Company Guidance
The company reiterated detailed 2026 guidance anchored by expected Enact capital returns of $550–$600 million (Genworth’s ~81% share = $445–$485 million), an increased share-repurchase plan of $225–$250 million for the year, and a CareScout growth plan targeting ~7.5k matches in 2026 (vs. 3.25k in 2025) even though current pacing is below that level; CareScout recorded ~1.45k matches in Q2 and ~2.95k in H1, generated $6M of Q2 revenue ($12M H1) with full-year revenue still expected at $25M, and will see $50–$55M of 2026 investment (CareScout Insurance requires no additional 2026 capital after an $85M 2025 investment). Additional metrics: Enact returned $103M in Q2, wrote $15B of new insurance in the quarter with $274B primary insurance in force, and Genworth’s share of Enact book value (incl. AOCI) was $4.4B with an estimated PMIER sufficiency of 161% (~$1.9B above requirements); the closed block secured $46M of gross incremental premium approvals in Q2 (+$27M in July), has cumulatively achieved ~$34.8B NPV of benefit reductions/premium increases since 2012 and expects 2026 approvals/benefit reductions to contribute ~ $1B NPV, while A-to-E losses imply a ~ $300M full-year benchmark (H1 has trended higher). Holding company liquidity and capital structure metrics include $215M of cash and liquid assets (excluding ~$81M held for obligations), $768M of holding company debt, a cash interest coverage ratio of ~9x, $62M of buybacks in the quarter at an $8.74 average (plus $4M in July; ~$922M repurchased since May 2022 at a $6.48 average), cash yields in life companies of ~6.2%, targeted ~12% returns on alternatives, and an unsettled AXA litigation with a potential $750M recovery (decision expected in ~3–6 months) that is not included in current plans.Genworth Financial Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.99B | 6.37B | 7.14B | 7.37B | 7.40B | 7.60B |
| Gross Profit | 2.84B | 1.55B | 558.00M | 304.00M | 1.37B | 1.05B |
| EBITDA | 561.00M | 631.00M | 840.00M | 461.00M | 1.47B | 1.27B |
| Net Income | 212.00M | 223.00M | 299.00M | 76.00M | 916.00M | 850.00M |
Balance Sheet | ||||||
| Total Assets | 87.36B | 88.08B | 86.87B | 90.82B | 89.71B | 99.17B |
| Cash, Cash Equivalents and Short-Term Investments | 47.25B | 8.15B | 7.72B | 49.00B | 48.38B | 62.05B |
| Total Debt | 1.50B | 1.51B | 1.52B | 1.58B | 1.61B | 1.90B |
| Total Liabilities | 77.60B | 78.32B | 77.44B | 82.48B | 81.33B | 82.91B |
| Stockholders Equity | 8.73B | 8.75B | 8.49B | 7.48B | 7.63B | 15.51B |
Cash Flow | ||||||
| Free Cash Flow | 430.00M | 327.00M | 88.00M | 597.00M | 1.05B | 437.00M |
| Operating Cash Flow | 430.00M | 327.00M | 88.00M | 597.00M | 1.05B | 437.00M |
| Investing Cash Flow | 181.00M | 518.00M | 861.00M | 1.26B | 733.00M | 896.00M |
| Financing Cash Flow | -422.00M | -857.00M | -1.11B | -1.44B | -1.55B | -2.42B |
Genworth Financial Technical Analysis
Positive
9.92
Price Trends
9.68
Positive
9.26
Positive
8.92
Positive
Market Momentum
0.06
Positive
50.78
Neutral
22.20
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 9.92 is above the 20-day moving average (MA) of 9.90, above the 50-day MA of 9.68, and above the 200-day MA of 8.92, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.20 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 41 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.02B | 18.26 | 10.82% | 1.30% | 5.72% | 7.05% | |
73 Outperform | $3.03B | 7.71 | 8.86% | 3.27% | 13.68% | 16.86% | |
70 Outperform | $8.11B | 3.53 | 21.99% | 4.35% | 12.32% | 97.86% | |
69 Neutral | $8.96B | 165.40 | 1.04% | 2.85% | 15.09% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $3.74B | 18.15 | 2.42% | ― | -0.68% | 19.26% | |
50 Neutral | $2.98B | 4.08 | 13.17% | ― | 2.62% | 33.55% |
* Financial Sector Average
GNW
Genworth Financial
9.86
1.25
14.52%
CNO
CNO Financial
54.19
15.58
40.35%
LNC
Lincoln National
42.61
1.92
4.72%
BHF
Brighthouse Financial
51.87
4.98
10.62%
JXN
Jackson Financial Incorporation
131.63
36.32
38.11%
FG
F&G Annuities & Life Inc
23.04
-10.53
-31.36%
Genworth Financial Corporate Events
Executive/Board Changes
Genworth Financial CEO Thomas McInerney Set to Return
Positive
Aug 20, 2026
Genworth Financial, Inc. said that President and Chief Executive Officer Thomas J. McInerney will return from a leave of absence and resume his roles on September 2, 2026, reinstating him as the principal executive officer with day-to-day operatio...
Business Operations and StrategyExecutive/Board Changes
Genworth Financial Names Interim CEO Amid Leadership Transition
Neutral
Jul 7, 2026
On July 7, 2026, Genworth Financial announced that longtime President and Chief Executive Officer Thomas J. McInerney will take a temporary leave of absence to focus on his health, marking a significant leadership change after he has led the compa...
Executive/Board ChangesShareholder Meetings
Genworth Shareholders Approve Directors, Pay and Stock Plan
Positive
May 21, 2026
At its May 20, 2026 annual stockholders meeting, Genworth Financial shareholders elected all ten director nominees to serve for the coming year and reaffirmed the company’s leadership structure. Investors also cast an advisory vote approving...
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.