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Genworth Financial Inc (GNW)
NYSE:GNW
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Genworth Financial
(NYSE:GNW)
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Rating:58Neutral
Price Target:
$9.00
▲(9.36% Upside)
Action:ReiteratedDate:02/28/26
GNW scores moderately, led by improving (but still inconsistent) financial performance and a constructive earnings outlook driven by Enact capital returns, buybacks, and CareScout growth. These positives are tempered by ongoing Closed Block/LTC losses and volatility, plus a neutral-to-soft technical picture.
Positive Factors
Enact cash generation & book value
Enact is a durable, high‑cash contributor, delivering meaningful operating income and rising book value. Its recurring capital returns (material cash receipts and expected 2026 repurchases) provide a stable funding source for buybacks, investments and dividends, reducing reliance on core legacy operations.
Aggressive share repurchases
Sustained, sizable buybacks materially shrink share count and concentrate earnings per share. This demonstrates disciplined capital allocation and supports shareholder returns long-term, improving per-share cash generation and offsetting slower top-line growth from legacy segments.
CareScout network expansion & product launch
CareScout shows structural growth: network scale, rising matches and an insurance product create a multi-year services revenue stream. The integrated offering and nationwide coverage position Genworth to diversify away from cyclical legacy insurance, supporting repeatable services revenue and strategic differentiation.
Negative Factors
Closed Block / LTC losses
Large, persistent losses in Closed Block and LTC are structurally material to earnings and capital. They erode consolidated profitability, consume capital and require ongoing management actions (rate increases, reserve work), making multi-year recovery and margin normalization uncertain without sustained remediations.
Ongoing A/E volatility
Persistent adverse actual/expected (A/E) variances create recurring GAAP volatility and forecasting difficulty. Regular negative swings complicate capital planning, stress holding company resources and make underwriting economics unpredictable over multi-year horizons, constraining strategic flexibility.
Holding company liquidity & corporate losses
Limited available holding company liquidity and ongoing corporate losses restrict capacity to fund investments, opportunistic capital returns or absorb shocks. Even with adequate interest coverage, constrained liquid resources raise execution risk for strategic initiatives and increase reliance on divisional cash transfers.
Genworth Financial (GNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.37B
Dividend YieldN/A
Average Volume (3M)4.47M
Price to Earnings (P/E)15.8
Beta (1Y)0.74
Revenue Growth1.41%
EPS Growth150.35%
CountryUS
Employees2,960
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.02
Shares Outstanding399,380,550
10 Day Avg. Volume4,134,123
30 Day Avg. Volume4,469,997
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)0.42
Price to Sales (P/S)0.51
P/FCF Ratio11.29
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit2.18
Enterprise Value/Ebitda6.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.61
Revenue Forecast (FY)N/A
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 multiple key streams, primarily through premiums collected from its insurance products. The mortgage insurance segment is a significant contributor, where the company insures lenders against default on home loans, collecting premiums from borrowers. Additionally, Genworth provides long-term care insurance, which involves collecting premiums from policyholders to cover future long-term care expenses. The company also earns investment income from its portfolio of investments made using the premiums collected. Significant partnerships with lenders and financial institutions enhance its ability to reach a broader customer base, while regulatory factors and market conditions also play a critical role in shaping its financial performance.
Genworth Financial Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful progress on strategic priorities—driven principally by Enact's strong contributions, substantial capital returns, aggressive share repurchases, and rapid early traction at CareScout (network expansion, match growth, product launch and 2026 revenue guidance). These positives were tempered by sizable Closed Block and LTC adjusted operating losses, ongoing quarterly A/E volatility (averaging ~$75M per quarter), limited holding company liquidity and steady Corporate segment losses. On balance, the upside from Enact and the advancing CareScout strategy (including clear 2026 targets and material capital returns) outweighs the near-term GAAP losses and liquidity constraints, supporting a constructive but cautious outlook.Q4-2025 Updates
Positive Updates
Enact Strong Financial Contribution
Enact contributed $146 million to Genworth's adjusted operating income in Q4 and $558 million for full-year 2025; Genworth's share of Enact book value (including AOCI) rose to $4.4 billion from $4.1 billion year-over-year.
Material Capital Returned from Enact
Genworth received $127 million from Enact in Q4 and $407 million for full-year 2025; Enact announced a $500 million repurchase authorization and expects to return ~$500 million in 2026, implying Genworth expects approximately $405 million based on ~81% ownership.
Aggressive Share Repurchases and Share Count Reduction
Genworth repurchased $245 million of shares in 2025 (including $94 million in Q4 at an average price of $8.66) and an additional $38 million through Feb 20, 2026; since May 2022 repurchases of ~$828 million reduced shares outstanding by ~24% (from 511 million to 388 million).
CareScout Rapid Growth and Network Expansion
CareScout Quality Network grew to ~790 home care providers (1,000+ locations) covering 97% of the U.S. population aged 65+; CareScout facilitated 925 matches in Q4 and 3,255 matches in 2025 (3x growth vs 2024), exceeding targets (original 2,500 and updated 3,000).
CareScout Product Launch and 2026 Revenue Guidance
Launched Care Assurance LTC product in Q4 (live in 40 states with 4 pending); CareScout services guidance for 2026: ~7,500 matches and at least $25 million revenue; planned CareScout services investment of $50–55 million in 2026.
Investment Portfolio and Alternative Returns
New investments in life companies achieved ~6.5% yields for the quarter; alternative asset program returned approximately 9% for the year; reinvestment yields exceeded yields on sales/maturities.
Closed Block In-Force Risk Mitigation Progress
Multi-year rate action program (MYRAP) has achieved ~$34.5 billion in net present value since 2012; achieved ~$209 million of gross incremental LTC premium approvals in 2025 (including $100 million in Q4) with average premium increases of 38% for the year (35.6% in Q4).
Capital Structure and Debt Metrics
Holding company ended 2025 with $234 million of cash and liquid assets, retired ~$7 million principal of debt in 2025 (holding company debt now $783 million), and maintains a cash interest coverage ratio on debt service of approximately 8x.
Negative Updates
Closed Block Substantial Losses
Closed Block reported an adjusted operating loss of $114 million in Q4 and $317 million for full-year 2025; LTC specifically had an adjusted operating loss of $159 million in Q4 and $326 million for the year.
Adverse LTC Experience and Remeasurement
LTC experienced a pretax unfavorable actual/expected (A/E) variance of $124 million driven by higher claims and lower terminations in capped cohorts; total remeasurement and assumption updates drove significant losses contributing to the Closed Block results.
Persistent Quarterly A/E Loss Trend
Since adopting LDTI, Closed Block A/E losses averaged ~$75 million per quarter in 2025 and management indicated similar-sized quarterly losses could continue in 2026 (subject to seasonality), indicating ongoing volatility in near-term GAAP results.
Holding Company Liquidity Constraints
Holding company cash and liquid assets were $234 million at year-end 2025, with approximately $127 million excluded as cash held for future obligations, limiting available liquidity for other uses.
Corporate & Other Operating Losses
Corporate and Other reported an adjusted operating loss of $24 million in Q4 and a $97 million loss for full-year 2025, reflecting ongoing investments in CareScout and holding company debt service that weighed on consolidated results.
Regulatory Capital Compression and Higher Required Capital
GLIC consolidated risk-based capital (RBC) ratio declined to 300% at year-end 2025 from 306% a year earlier, reflecting higher required capital driven in part by growth in limited partnership investments.
Company Guidance
Genworth's 2026 guidance centers on capital returns, buybacks and CareScout growth: Enact expects to return ~$500M in 2026 (Genworth’s ~81% stake implies ~ $405M to Genworth), building on $407M received in 2025 and $127M in Q4, and Enact’s PMIERs sufficiency was 162%; Genworth plans to repurchase $175–225M of shares in 2026 (after $245M repurchased in 2025, $94M in Q4 at an average $8.66/sh and $38M repurchased through Feb 20, 2026, reducing shares outstanding ~24% from 511M to 388M); CareScout targets ~7,500 matches in 2026, at least $25M of services revenue and $50–55M of investment in services (following an $85M CareScout Insurance investment and ~$50M of services funding in 2025); holding company cash/liquids were $234M (excluding ~$127M held for obligations), holding company debt was $783M with ~8x cash interest coverage.Genworth Financial Financial Statement Overview
Summary
Moderate fundamentals: profitability has recovered from the 2023 trough with improving net margins and a 2025 cash flow rebound, but revenue remains largely flat over multiple years, ROE is modest, and cash flows have been volatile. Balance sheet leverage looks manageable, though some data consistency risk (e.g., 2025 debt/asset shifts) limits confidence.Income Statement
Revenue has been largely flat over time (mostly modest declines from 2021–2024, followed by a small rebound in 2025). Profitability is positive but uneven: net margin improved from a low level in 2023 (~1.0%) to ~4.2% in 2024 and ~4.8% in 2025, still well below the stronger 2021–2022 period (double-digit net margins). Overall, earnings have stabilized versus the 2023 trough, but the multi-year downshift from 2021–2022 profitability keeps the score in the middle range.56
Neutral
Balance Sheet
Leverage appears manageable in the years where debt is reported, with debt-to-equity improving from ~0.21 (2022–2023) to ~0.18 (2024). Equity is sizable and generally stable, supporting balance sheet resilience. That said, returns on equity are modest in recent years (roughly ~1% in 2023, ~3.5% in 2024, ~4.0% in 2025), indicating the capital base is not being converted into high shareholder returns. Also, reported total debt drops to zero in 2025 while assets drop sharply versus prior years, which introduces data consistency risk and limits confidence in the trend.62
Positive
Cash Flow
Cash generation is positive, but volatile. Operating cash flow and free cash flow fell sharply from 2022 to 2024 before rebounding in 2025 (free cash flow up materially year-over-year). Free cash flow tracks net income closely in the provided data (often ~1.0x), which suggests earnings are generally supported by cash conversion, but the magnitude of swings (from very strong in 2022 to weak in 2024, then recovering in 2025) reduces the quality/stability of the cash flow profile.54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.30B | 7.14B | 7.37B | 7.40B | 7.60B |
| Gross Profit | 0.00 | 558.00M | 304.00M | 1.37B | 1.05B |
| EBITDA | 0.00 | 710.00M | 421.00M | 1.47B | 1.27B |
| Net Income | 349.00M | 299.00M | 76.00M | 916.00M | 850.00M |
Balance Sheet | |||||
| Total Assets | 8.93B | 86.87B | 90.82B | 89.71B | 99.17B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 7.72B | 49.00B | 48.38B | 62.05B |
| Total Debt | 0.00 | 1.52B | 1.58B | 1.61B | 1.90B |
| Total Liabilities | 178.00M | 77.44B | 82.48B | 81.33B | 82.91B |
| Stockholders Equity | 8.75B | 8.49B | 7.48B | 7.63B | 15.51B |
Cash Flow | |||||
| Free Cash Flow | 327.00M | 88.00M | 597.00M | 1.05B | 437.00M |
| Operating Cash Flow | 327.00M | 88.00M | 597.00M | 1.05B | 437.00M |
| Investing Cash Flow | 518.00M | 861.00M | 1.26B | 733.00M | 896.00M |
| Financing Cash Flow | -857.00M | -1.11B | -1.44B | -1.55B | -2.42B |
Genworth Financial Technical Analysis
Negative
8.23
Price Trends
8.75
Negative
8.68
Negative
8.30
Positive
Market Momentum
-0.03
Positive
43.28
Neutral
39.45
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 8.23 is below the 20-day moving average (MA) of 8.74, below the 50-day MA of 8.75, and below the 200-day MA of 8.30, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 39.45 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 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 1 New Risks
Genworth Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.07B | 12.06 | 6.05% | 2.91% | -4.58% | ― | |
63 Neutral | $6.52B | 5.88 | 12.27% | 3.93% | 35.76% | 636.97% | |
62 Neutral | $3.94B | 18.20 | 11.12% | 1.54% | -1.61% | 15.79% | |
58 Neutral | $3.37B | 15.76 | 2.86% | ― | 1.41% | 150.35% | |
58 Neutral | $7.74B | -324.10 | 0.27% | 2.98% | 24.94% | ― | |
54 Neutral | $3.43B | 10.33 | 7.38% | ― | 27.71% | ― |
* Financial Sector Average
GNW
Genworth Financial
8.44
1.53
22.14%
CNO
CNO Financial
41.81
0.80
1.95%
LNC
Lincoln National
34.30
-1.82
-5.04%
BHF
Brighthouse Financial
59.98
1.90
3.27%
JXN
Jackson Financial Incorporation
109.48
24.02
28.11%
FG
F&G Annuities & Life Inc
22.65
-18.89
-45.47%
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.