Fundamentals snapshot
GNW · NYQ · Financial Services · Insurance - Life
Current price
$8.78
52-week range
$7.84 - $10.69
Market cap
$3.32B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $206.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Genworth Financial sells insurance that helps people pay for when they need long-term care, like in a nursing home, and also insurance for mortgages. The money mainly comes from people paying for these insurance policies, which is important because it shows how many people are relying on them for future protection.
Genworth Financial has a long history, tracing its roots back to 1871. It evolved over many decades, eventually becoming a significant player in the insurance and financial services industry. A major turning point was its separation from its former parent company, General Electric, in 2004, when it became an independent, publicly traded entity. This allowed Genworth to focus more specifically on its core insurance businesses, particularly life insurance and long-term care insurance, while also navigating the complexities of the mortgage insurance market.
Genworth Financial provides insurance and financial products designed to help people manage financial risks related to life events and long-term care. Think of it like offering a safety net for significant future expenses. They offer insurance that helps cover the costs associated with needing long-term care, like in-home assistance or nursing facilities, and also provide life insurance to offer financial support to beneficiaries after someone passes away. Additionally, they are involved in mortgage insurance, which helps protect lenders if a homebuyer can't make their mortgage payments.
The Enact segment is primarily focused on mortgage insurance. This means Genworth provides insurance policies to mortgage lenders, protecting them in case a borrower defaults on their home loan. For homebuyers who may not have a large down payment, this insurance can make it easier to secure a mortgage. Enact is a significant part of Genworth's business, contributing a substantial portion of its overall revenue by insuring a large volume of home loans.
The Closed Block segment encompasses Genworth's legacy life insurance and annuity businesses. This includes products like traditional life insurance, which pays out a death benefit to beneficiaries, and annuities, which are essentially investment products that can provide a stream of income, often used for retirement planning. This segment is considered 'closed' because it primarily manages existing policies rather than actively selling new ones, focusing on profitability and managing the obligations to existing policyholders.
Genworth's current strategy revolves around strengthening its core insurance operations and managing its existing businesses effectively. A key focus is on growing the Enact mortgage insurance segment, which benefits from a healthy housing market and increasing demand for homeownership. Management is also dedicated to efficiently managing the liabilities within the Closed Block, aiming to generate stable cash flows from its established life insurance and annuity policies. The company is also working to return value to shareholders through various means, such as share repurchases, demonstrating confidence in its financial stability and future prospects.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $206.0M. Interest coverage 5.1x.
Genworth Financial, Inc.'s profit covers its interest bill about 5.1 times over.
Total debt $2.28B Interest coverage 5.12x This is the baseline the peer rows are being compared against.
Total debt $745.23M Interest coverage 18.19x +255% vs GNW Carries about 3.6x more debt cushion than GNW.
Total debt $426.15M Interest coverage 18.55x +262% vs GNW Carries about 3.6x more debt cushion than GNW.
Total debt $495.97M Interest coverage 26.14x +410% vs GNW Carries about 5.1x more debt cushion than GNW.
Total debt $4.81B Interest coverage 2.27x -56% vs GNW Carries about 2.3x less debt cushion than GNW.
Total debt $7.24B Interest coverage 6.89x +35% vs GNW Carries about 1.3x more debt cushion than GNW.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know