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Genworth Financial Inc (GNW)
NYSE:GNW
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Genworth Financial
(NYSE:GNW)
Rating:64Neutral
Price Target:
$7.00
▲( 3.09% Upside)
Genworth Financial (GNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.81B
Dividend YieldN/A
Average Volume (3M)7.60M
Price to Earnings (P/E)13.8
Beta (1Y)0.54
Revenue Growth0.98%
EPS Growth156.14%
CountryUS
Employees2,960
SectorFinancial
Sector Strength82
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.12
Shares Outstanding414,456,970
10 Day Avg. Volume8,692,733
30 Day Avg. Volume7,602,566
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.34
Price to Sales (P/S)0.00
P/FCF Ratio12.76
Enterprise Value/Market Cap0.37
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.15
Enterprise Value/Ebitda0.37
Forecast
1Y Price Target
$8.50Price Target Upside25.18% 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 shows a stable revenue stream with strong cost management, evident from its gross profit margin. However, challenges lie in maintaining profitability and consistent cash flow growth, as indicated by volatile net profit margins and declining free cash flow.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.13B | 7.14B | 7.49B | 7.51B | 7.83B | 8.66B | Gross Profit |
| 6.96B | 7.14B | 7.49B | 7.51B | 7.83B | 8.66B | EBIT |
| 439.00M | 595.00M | 199.00M | 739.00M | 1.17B | 448.00M | EBITDA |
| 757.00M | 710.00M | 461.00M | 1.52B | 1.39B | 1.17B | Net Income Common Stockholders |
| 250.00M | 299.00M | 76.00M | 609.00M | 850.00M | 761.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 47.56B | 7.72B | 2.21B | 61.39B | 74.50B | 80.57B | Total Assets |
| 87.26B | 86.87B | 90.82B | 86.44B | 99.17B | 105.75B | Total Debt |
| 0.00 | 1.52B | 1.58B | 1.61B | 1.90B | 3.55B | Net Debt |
| -1.89B | -530.00M | -631.00M | -59.78B | -72.60B | -77.02B | Total Liabilities |
| 77.58B | 77.44B | 82.48B | 75.70B | 1.88B | 3.53B | Stockholders Equity |
| 8.71B | 8.49B | 7.48B | 9.98B | 15.51B | 15.32B |
| Cash Flow | Free Cash Flow | ||||
| 229.00M | 88.00M | 597.00M | 1.05B | 437.00M | 2.23B | Operating Cash Flow |
| 229.00M | 88.00M | 597.00M | 1.05B | 437.00M | 1.96B | Investing Cash Flow |
| 704.00M | 861.00M | 1.26B | 733.00M | 896.00M | -1.15B | Financing Cash Flow |
| -993.00M | -1.11B | -1.44B | -1.55B | -2.42B | -1.51B |
Genworth Financial Technical Analysis
Negative
6.79
Price Trends
6.87
Negative
6.90
Negative
6.96
Negative
Market Momentum
0.04
Positive
45.54
Neutral
12.22
Positive
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 6.79 is below the 20-day moving average (MA) of 6.97, below the 50-day MA of 6.87, and below the 200-day MA of 6.96, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.21B | 8.45 | 12.72% | 2.75% | -1.72% | 95.91% | |
69 Neutral | $5.78B | 78.86 | 1.24% | 3.58% | 3.55% | 8.91% | |
64 Neutral | $2.81B | 13.78 | 2.73% | ― | 0.98% | 156.14% | |
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% | |
64 Neutral | $5.53B | 4.60 | 16.91% | 5.56% | 8.31% | -2.30% | |
59 Neutral | $3.68B | 12.97 | 12.47% | 1.72% | -0.43% | -16.22% | |
49 Neutral | $3.32B | 6.93 | 13.00% | ― | 14.74% | ― |
* Financial Sector Average
Performance Comparison
GNW
Genworth Financial
6.79
0.56
8.99%
CNO
CNO Financial
37.14
9.61
34.91%
LNC
Lincoln National
32.38
1.94
6.37%
BHF
Brighthouse Financial
57.91
15.16
35.46%
JXN
Jackson Financial Incorporation
80.92
7.02
9.50%
FG
F&G Annuities & Life Inc
31.24
-8.34
-21.07%
Genworth Financial Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -1.02%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with strong performance from Enact and CareScout's expansion, offset by losses in the life and annuities segment and ongoing litigation uncertainty.Q1-2025 Updates
Positive Updates
Enact's Strong Performance
Enact contributed $137 million in adjusted operating income to Genworth, maintaining a strong capital and liquidity position with a 165% PMIER sufficiency ratio.
CareScout Expansion
CareScout saw a tenfold increase in matches from 52 in Q1 2024 to 576 in Q1 2025, and expanded its provider network to nearly 550 providers, achieving a 90% coverage level for the 65-plus age group.
Shareholder Returns and Capital Management
Genworth repurchased $55 million worth of shares year-to-date through April and received $76 million in capital returns from Enact in Q1 2025.
Successful Rate Action Program
Achieved $24 million in gross incremental premium approvals with an average increase of 28% in Q1 2025, contributing to a total of $31.3 billion in net present value since 2012.
Negative Updates
Life and Annuities Segment Loss
Reported an adjusted operating loss of $33 million due to seasonally high mortality and a decline in premiums from benefit reduction elections.
Litigation Uncertainty
Ongoing litigation between AXA and Santander with potential financial implications, although Genworth remains optimistic about a favorable outcome.
Macroeconomic Uncertainty
Potential impact from global tariff negotiations and a possible recession could affect Genworth's earnings and business operations.
Company Guidance
In the Genworth Financial's first-quarter 2025 earnings call, the company reported a net income of $54 million, or $0.13 per share, with an adjusted operating income of $51 million. Enact, Genworth's mortgage insurance subsidiary, significantly contributed to these results with $137 million in adjusted operating income. The U.S. Life insurance segment posted an estimated pre-tax statutory loss of $1 million. The company ended the quarter with cash and liquid assets totaling $211 million. Genworth highlighted the 14% increase in Enact's quarterly dividend and a new $350 million share repurchase authorization. Moreover, CareScout, their long-term care services division, reported a more than tenfold increase in the number of matches with quality network providers, reaching 576 in the first quarter of 2025 compared to 52 in the same period last year. The company projects $1 billion to $1.5 billion in claims savings due to CareScout's negotiated rates with providers. Additionally, Genworth continued its share repurchase program, buying back $55 million worth of shares year-to-date through April, with a total of $600 million shares repurchased since the program's inception.Genworth Financial Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Genworth Financial Approves Key Governance Changes
Neutral
May 22, 2025
At the 2025 annual meeting held on May 22, Genworth Financial‘s stockholders elected ten directors, approved executive compensation, the 2025 Omnibus Incentive Plan, and the selection of KPMG LLP as the accounting firm. An amendment to remove the ‘Pass-Through Voting’ provision was also approved, indicating strategic governance changes.
The most recent analyst rating on (GNW) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Genworth Financial stock, see the GNW Stock Forecast page.
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.