Genworth Financial, Inc.
Genworth Financial, Inc. Fundamental Analysis
Genworth Financial, Inc. (GNW) shows weak financial fundamentals with a PE ratio of 14.14, profit margin of 3.25%, and ROE of 2.54%. The company generates $6.9B in annual revenue with weak year-over-year growth of -4.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GNW's fundamental strength across five key dimensions:
Efficiency Score
WeakGNW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGNW trades at attractive valuation levels.
Growth Score
WeakGNW faces weak or negative growth trends.
Financial Health Score
ModerateGNW shows balanced financial health with some risks.
Profitability Score
ModerateGNW maintains healthy but balanced margins.
Key Financial Metrics
Is GNW Expensive or Cheap?
P/E Ratio
GNW trades at 14.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GNW's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Genworth Financial, Inc. at 0.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.88 times EBITDA. This is generally considered low.
How Well Does GNW Make Money?
Net Profit Margin
For every $100 in sales, Genworth Financial, Inc. keeps $3.25 as profit after all expenses.
Operating Margin
Core operations generate 6.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.54 in profit for every $100 of shareholder equity.
ROA
Genworth Financial, Inc. generates $2.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Genworth Financial, Inc. generates limited operating cash flow of $329.46M, signaling weaker underlying cash strength.
Free Cash Flow
Genworth Financial, Inc. produces free cash flow of $329.46M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
GNW converts 10.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How GNW Stacks Against Its Sector Peers
| Metric | GNW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.14 | 18.50 | Better (Cheaper) |
| ROE | 2.54% | 809.00% | Weak |
| Net Margin | 3.25% | 2211.00% | Weak |
| Debt/Equity | 0.17 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 691.82 | Weak Liquidity |
| ROA | 2.50% | -24320.00% (disorted) | Weak |
GNW outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Genworth Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.26%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-33.23%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-95.09%
Industry Style: Value, Dividend, Cyclical
Declining