Genworth Financial Inc (GNW)
NYSE:GNW
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Genworth Financial
(NYSE:GNW)
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Rating:66Neutral
Price Target:
$10.00
▲(14.68% Upside)
Action:Reiterated
Date:05/22/26
Overall score reflects solid technical momentum and a supportive earnings-call backdrop (Enact-driven capital returns and active buybacks), balanced against weaker financial performance trends (sharp revenue contraction and lower ROE) and a roughly neutral valuation (P/E ~16.8 with no dividend yield provided).
Positive Factors
Enact-driven capital returns
Large, predictable capital returns from Enact create a durable source of distributable capital that supports buybacks, debt reduction, and reinvestment without relying on cyclically volatile insurance earnings. This structural cash flow separation reduces holding-company funding pressure and enables consistent capital allocation execution.
Negative Factors
Closed-block GAAP volatility
Large anticipated A-to-E remeasurement losses in the closed block drive recurring GAAP earnings volatility and can depress reported profitability even if cash economics differ. Persistent GAAP swings complicate capital planning, investor confidence, and may constrain strategic flexibility across multiple reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Enact-driven capital returns
Large, predictable capital returns from Enact create a durable source of distributable capital that supports buybacks, debt reduction, and reinvestment without relying on cyclically volatile insurance earnings. This structural cash flow separation reduces holding-company funding pressure and enables consistent capital allocation execution.
Read all positive factors
Genworth Financial (GNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.47B
Dividend YieldN/A
Average Volume (3M)4.47M
Price to Earnings (P/E)16.8
Beta (1Y)0.76
Revenue Growth-1.14%
EPS Growth7.17%
CountryUS
Employees2,960
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.54
Shares Outstanding383,009,250
10 Day Avg. Volume4,134,123
30 Day Avg. Volume4,469,997
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)0.42
Price to Sales (P/S)0.58
P/FCF Ratio11.29
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit2.80
Enterprise Value/Ebitda5.48
Forecast
1Y Price Target
$11.00Price Target Upside26.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.42
Revenue Forecast (FY)N/A
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 ...
How the Company Makes Money
Genworth primarily makes money through its mortgage insurance business. The company earns insurance premiums from lenders (or, indirectly, borrowers) in exchange for providing mortgage default protection on covered residential loans. It also gener...
Genworth Financial Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational performance driven by Enact, significant capital returns ($99 million in Q1 and guidance for $405–450 million from Enact in 2026), active share repurchases, and clear progress scaling CareScout (1,500 matches in Q1, $6 million in Q1 services revenue and a $25 million 2026 target). At the same time, the closed block produced a Q1 adjusted operating loss and management flagged expected A-to-E GAAP losses of ~ $300 million for 2026, holding company liquidity is modest ($166 million) and Enact book value and earned premiums saw small declines. Overall, positive operational and strategic momentum (Enact strength, CareScout growth, disciplined capital returns and risk-reduction progress) outweigh the accounting volatility and liquidity considerations tied to the closed block.Positive Updates
Consolidated Profitability and Core Operating Income
Net income of $47 million for Q1 2026; consolidated adjusted operating income excluding the closed block of $109 million. Enact drove results with adjusted operating income of $140 million and a $39 million pretax reserve release, contributing to an Enact loss ratio of 15%.
Negative Updates
Closed Block GAAP Volatility and Quarterly Loss
Closed Block reported an adjusted operating loss of $32 million in Q1 driven by a liability remeasurement A-to-E loss of $36 million pretax (primarily LTC). Management expects A-to-E losses in the range of approximately $300 million for full-year 2026, reflecting continued GAAP volatility in the closed block.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Profitability and Core Operating Income
Net income of $47 million for Q1 2026; consolidated adjusted operating income excluding the closed block of $109 million. Enact drove results with adjusted operating income of $140 million and a $39 million pretax reserve release, contributing to an Enact loss ratio of 15%.
Read all positive updates
Company Guidance
The company reiterated 2026 guidance and targets across businesses, highlighting full‑year expectations that Enact will return about $500M (Genworth’s ~81% stake implies ~$405M–$450M to Genworth), that Genworth will allocate $195M–$225M to share repurchases in 2026 (year‑to‑date repurchases: $66M in Q1 at an average $8.61/share plus $19M through April 30; cumulative repurchases $875M at an average $6.38), and that CareScout is targeting ~7,500 matches in 2026 (versus 3,255 in 2025) with Q1 matches ~1,500, Q1 services revenue $6M and a full‑year services revenue target of $25M while investing $50M–$55M in services in 2026 (no additional insurance investment expected after the $85M invested last year); Q1 financials included net income $47M, consolidated adjusted operating income excluding the closed block $109M, Enact adjusted operating income to Genworth $140M (including a $39M pretax reserve release), holding company cash/liquid assets $166M (excluding ~$50M held for obligations), Enact new insurance written $13B and primary insurance in force $272B, Enact earned premiums $243M, Enact PMIERs sufficiency 162% (~$1.9B above requirements) and Genworth’s share of Enact book value ~$4.3B, closed block Q1 adjusted operating loss $32M with A-to-E pretax losses driving an expected full‑year A‑to‑E loss of ~ $300M, MYRAP approvals of $5M in Q1 and another $45M in Q2 with full‑year premium approvals/benefit reductions expected broadly in line with 2025 contributing ~ $1B NPV, holding company debt ~$778M after ~$5M principal retired in Q1 with cash interest coverage ~9x, life company new‑money yields ~6.3%, alternative assets targeted returns ~12%, and a potential Absa recovery of ~ $750M (not assumed in capital plans).Genworth Financial Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
70
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.82B | 6.37B | 7.14B | 7.37B | 7.40B | 7.60B |
| Gross Profit | 1.02B | 1.55B | 558.00M | 304.00M | 1.37B | 1.05B |
| EBITDA | 522.00M | 631.00M | 710.00M | 421.00M | 1.47B | 1.27B |
| Net Income | 216.00M | 223.00M | 299.00M | 76.00M | 916.00M | 850.00M |
Balance Sheet | ||||||
| Total Assets | 86.77B | 88.08B | 86.87B | 90.82B | 89.71B | 99.17B |
| Cash, Cash Equivalents and Short-Term Investments | 47.22B | 8.15B | 7.72B | 49.00B | 48.38B | 62.05B |
| Total Debt | 1.51B | 1.51B | 1.52B | 1.58B | 1.61B | 1.90B |
| Total Liabilities | 76.93B | 78.32B | 77.44B | 82.48B | 81.33B | 82.91B |
| Stockholders Equity | 8.81B | 8.75B | 8.49B | 7.48B | 7.63B | 15.51B |
Cash Flow | ||||||
| Free Cash Flow | 384.00M | 327.00M | 88.00M | 597.00M | 1.05B | 437.00M |
| Operating Cash Flow | 384.00M | 327.00M | 88.00M | 597.00M | 1.05B | 437.00M |
| Investing Cash Flow | 527.00M | 518.00M | 861.00M | 1.26B | 733.00M | 896.00M |
| Financing Cash Flow | -682.00M | -857.00M | -1.11B | -1.44B | -1.55B | -2.42B |
Genworth Financial Technical Analysis
Positive
8.72
Price Trends
8.67
Positive
8.64
Positive
8.66
Positive
Market Momentum
0.13
Positive
53.24
Neutral
68.29
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 8.72 is below the 20-day moving average (MA) of 9.06, above the 50-day MA of 8.67, and above the 200-day MA of 8.66, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 68.29 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.68B | 3.39 | 11.42% | 2.91% | 17.32% | -0.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.41B | 25.62 | 9.56% | 1.54% | 5.03% | -12.76% | |
66 Neutral | $3.47B | 16.76 | 2.46% | ― | -1.14% | 7.17% | |
65 Neutral | $7.46B | -4.35 | -3.73% | 2.98% | -20.54% | -652.89% | |
62 Neutral | $6.89B | -9.86 | 16.79% | 3.93% | 8.45% | 21.80% | |
54 Neutral | $3.59B | -1.13 | -1.07% | ― | -16.15% | -133.67% |
* Financial Sector Average
GNW
Genworth Financial
9.07
2.28
33.58%
CNO
CNO Financial
47.29
10.78
29.54%
LNC
Lincoln National
36.03
5.16
16.72%
BHF
Brighthouse Financial
62.47
4.56
7.87%
JXN
Jackson Financial Incorporation
106.95
28.77
36.80%
FG
F&G Annuities & Life Inc
27.79
-2.46
-8.14%
Genworth Financial Corporate Events
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.