Genworth Financial (GNW) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: N/A
• Average Volume (3M): 4.47M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.74
• Revenue Growth: 2.61%
• EPS Growth: 465.03%
• Country: US
• Employees: 2,960
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.16
• Shares Outstanding: 410,433,930
• 10 Day Avg. Volume: 4,134,123
• 30 Day Avg. Volume: 4,469,997
• 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: 1.69
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 7.17
• 1Y Price Target: $10.00
• Price Target Upside: 19.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $9.00 ▲(7.14% Upside)

Genworth Financial's overall stock score is driven by a stable financial position and positive earnings call sentiment, despite challenges in revenue growth and cash flow generation. Technical analysis suggests mixed signals, while valuation remains moderate. The company's strategic initiatives and potential litigation recovery provide a positive outlook, but ongoing challenges in certain segments need to be addressed.

Genworth Financial Business Overview & Revenue Model

Company Description

Genworth 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 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: Neutral
• Last Price: 8.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNW, the sentiment is Neutral. The current price of 8.4 is below the 20-day moving average (MA) of 8.64, below the 50-day MA of 8.69, and above the 200-day MA of 7.56, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GNW.

Genworth Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	―	$3.94B	11.94	8.40%	3.01%	1.78%	0.77%
CNO	―	$3.86B	14.83	11.35%	1.64%	0.82%	-29.29%
BHF	―	$2.65B	5.00	13.53%	―	59.27%	―
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LNC	―	$7.59B	7.00	12.97%	4.49%	11.33%	-38.17%
GNW	―	$3.41B	18.80	2.42%	―	2.61%	465.03%
JXN	―	$6.92B	―	0.30%	3.17%	27.18%	-100.02%

Genworth Financial Corporate Events

Genworth Financial’s Earnings Call Highlights Strategic Gains

Genworth Financial Inc.’s recent earnings call painted a picture of robust financial health and strategic advancements, despite facing challenges in certain segments. The call highlighted the company’s strong financial performance, significant capital returns, and strategic progress, particularly in expanding CareScout services and achieving favorable litigation outcomes. However, it also acknowledged the hurdles in the long-term care and life insurance segments, alongside increased investments in CareScout Insurance, which contributed to some negative aspects of the report.

Genworth Financial Reports Solid Q2 2025 Performance

Genworth Financial Inc., a Fortune 1000 company headquartered in Richmond, Virginia, specializes in providing products and services that help families navigate long-term care needs and is also the parent company of Enact Holdings, a leading U.S. mortgage insurance provider.