Genworth Financial (GNW) AI Stock Analysis

• Market Cap: $3.46B
• Dividend Yield: N/A
• Average Volume (3M): 6.03M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.73
• Revenue Growth: 2.61%
• EPS Growth: 465.03%
• Country: US
• Employees: 2,960
• Sector: Financial
• Sector Strength: 71
• Industry: Insurance - Life
• EPS (TTM): 0.16
• Shares Outstanding: 410,433,930
• 10 Day Avg. Volume: 5,057,054
• 30 Day Avg. Volume: 6,033,405
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 7.17
• 1Y Price Target: $9.50
• Price Target Upside: 12.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $9.00 ▲(7.02% Upside)

Genworth Financial's overall stock score is driven by strong technical indicators and positive earnings call highlights, including strategic progress and capital returns. However, the score is tempered by financial performance challenges, particularly in revenue growth and cash flow generation. The valuation is moderate, and the lack of a dividend yield limits its appeal to income investors.

Genworth Financial Business Overview & Revenue Model

Company Description

Genworth 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 Money

Genworth 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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.06B	7.14B	7.49B	7.51B	7.83B	8.66B
Gross Profit	3.77B	7.14B	7.49B	7.51B	7.83B	8.66B
EBITDA	803.00M	710.00M	461.00M	1.52B	1.39B	1.17B
Net Income	189.00M	299.00M	76.00M	916.00M	850.00M	761.00M
Balance Sheet
Total Assets	87.34B	86.87B	90.82B	86.44B	99.17B	105.75B
Cash, Cash Equivalents and Short-Term Investments	61.22B	7.72B	2.21B	61.39B	74.50B	80.57B
Total Debt	1.52B	1.52B	1.58B	1.61B	1.90B	3.55B
Total Liabilities	77.56B	77.44B	82.48B	75.70B	1.88B	3.53B
Stockholders Equity	8.79B	8.49B	7.48B	9.98B	15.51B	15.32B
Cash Flow
Free Cash Flow	228.00M	88.00M	597.00M	1.05B	437.00M	2.23B
Operating Cash Flow	228.00M	88.00M	597.00M	1.05B	437.00M	1.96B
Investing Cash Flow	620.00M	861.00M	1.26B	733.00M	896.00M	-1.15B
Financing Cash Flow	-982.00M	-1.11B	-1.44B	-1.55B	-2.42B	-1.51B

Genworth Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8.41 is above the 20-day moving average (MA) of 8.21, above the 50-day MA of 7.79, and above the 200-day MA of 7.21, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 61.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNW.

Genworth Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	79 Outperform	$4.59B	13.93	8.40%	2.55%	1.78%	0.77%
CNO	73 Outperform	$3.68B	13.98	11.35%	1.64%	0.82%	-29.29%
LNC	71 Outperform	$7.69B	7.08	12.97%	4.40%	11.33%	-38.17%
GNW	67 Neutral	$3.46B	19.14	2.42%	―	2.61%	465.03%
JXN	63 Neutral	$6.67B	82.50	0.30%	3.12%	27.18%	-100.02%
BHF	62 Neutral	$2.64B	5.05	13.53%	―	59.27%	―
Sector *	58 Neutral	HK$110.85B	6.44	-4.87%	3.92%	9.01%	-47.48%

Genworth Financial Corporate Events

Genworth Financial Approves Key Governance Changes

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.