📊 GNW Key Takeaways
Is Genworth Financial Inc. (GNW) a Good Investment?
Genworth is experiencing deteriorating profitability with net income declining 18% YoY and flat revenue growth, while generating minimal returns on its large equity base (0.5% ROE). The company's thin 2.6% net margin and inability to deploy its $86.8B asset base efficiently suggest structural challenges in the life insurance business with limited shareholder value creation.
Fundamentals are mixed: a conservative balance sheet (0.17x D/E, 4.1x interest coverage) and positive free cash flow are offset by thin margins (3.1% net) and a YoY earnings decline. Revenue is flat and ROE is low at 2.5%, limiting intrinsic compounding until profitability improves. Sustained margin expansion and stronger cash generation would be needed to upgrade the outlook.
Why Buy Genworth Financial Inc. Stock? GNW Key Strengths
- Positive free cash flow generation of $91M with 5.1% FCF margin despite low profitability
- Moderate leverage profile with 0.17x debt-to-equity ratio and adequate 4.4x interest coverage
- Maintains $2.1B in cash and equivalents providing liquidity cushion
- Conservatively levered with $2.04B cash and 0.17x debt/equity
- Positive operating and free cash flow with a 4.5% FCF margin
- Adequate interest coverage (4.1x) providing financial flexibility
GNW Stock Risks: Genworth Financial Inc. Investment Risks
- Sharp profitability decline with net income down 18% YoY and EPS down 20.6% indicating deteriorating business quality
- Abysmal capital efficiency with 0.5% ROE and 0.1% ROA on $8.8B stockholders equity base
- Flat revenue growth (+0.1% YoY) combined with thin 2.6% net margin and 6.2% operating margin limiting margin expansion potential
- Large asset-to-equity ratio (86.8B assets / 8.8B equity = 9.9x) creates operational leverage risk if underwriting deteriorates further
- Earnings pressure: net income down 18% YoY and EPS down 20.6%
- Low returns on capital (ROE 2.5%, ROA 0.3%)
- Flat top-line growth (+0.1% YoY) with potential margin pressure
Key Metrics to Watch
- Net income and EPS trajectory - must stabilize or reverse declining trend
- Return on Equity - critical indicator of whether company can improve capital deployment efficiency
- Operating margin expansion - need evidence of pricing power or cost discipline
- Revenue growth acceleration - must move beyond flat growth to justify asset base size
- Operating cash flow sustainability - ensure FCF generation persists amid earnings pressure
- ROE
- Operating margin
Genworth Financial Inc. (GNW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GNW Profit Margin, ROE & Profitability Analysis
GNW vs Finance Sector: How Genworth Financial Inc. Compares
How Genworth Financial Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Genworth Financial Inc. Stock Overvalued? GNW Valuation Analysis 2026
Based on fundamental analysis, Genworth Financial Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Genworth Financial Inc. Balance Sheet: GNW Debt, Cash & Liquidity
GNW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Genworth Financial Inc.'s revenue has remained relatively flat over the 5-year period, with a 10% decline. The most recent EPS of $0.16 reflects profitable operations.
GNW Revenue Growth, EPS Growth & YoY Performance
GNW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.8B | $47.0M | $0.12 |
| Q3 2025 | $1.9B | $85.0M | $0.19 |
| Q2 2025 | $1.8B | $51.0M | $0.12 |
| Q1 2025 | $1.8B | $54.0M | $0.13 |
| Q3 2024 | $1.8B | $29.0M | $0.06 |
| Q2 2024 | $1.8B | $76.0M | $0.17 |
| Q1 2024 | $1.9B | $122.0M | $0.24 |
| Q3 2023 | $1.8B | $29.0M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Genworth Financial Inc. Dividends, Buybacks & Capital Allocation
GNW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Genworth Financial Inc. (CIK: 0001276520)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779480918.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779397467.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779397451.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779397437.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779397416.xml | View → |
❓ Frequently Asked Questions about GNW
What is the AI rating for GNW?
Genworth Financial Inc. (GNW) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GNW's key strengths?
Claude: Positive free cash flow generation of $91M with 5.1% FCF margin despite low profitability. Moderate leverage profile with 0.17x debt-to-equity ratio and adequate 4.4x interest coverage. ChatGPT: Conservatively levered with $2.04B cash and 0.17x debt/equity. Positive operating and free cash flow with a 4.5% FCF margin.
What are the risks of investing in GNW?
Claude: Sharp profitability decline with net income down 18% YoY and EPS down 20.6% indicating deteriorating business quality. Abysmal capital efficiency with 0.5% ROE and 0.1% ROA on $8.8B stockholders equity base. ChatGPT: Earnings pressure: net income down 18% YoY and EPS down 20.6%. Low returns on capital (ROE 2.5%, ROA 0.3%).
What is GNW's revenue and growth?
Genworth Financial Inc. reported revenue of $1.8B.
Does GNW pay dividends?
Genworth Financial Inc. does not currently pay dividends.
Where can I find GNW SEC filings?
Official SEC filings for Genworth Financial Inc. (CIK: 0001276520) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GNW's EPS?
Genworth Financial Inc. has a diluted EPS of $0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GNW a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Genworth Financial Inc. has a SELL rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GNW stock overvalued or undervalued?
Valuation metrics for GNW: ROE of 0.5% (sector avg: 12%), net margin of 2.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy GNW stock in 2026?
Our dual AI analysis gives Genworth Financial Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GNW's free cash flow?
Genworth Financial Inc.'s operating cash flow is $91.0M, with capital expenditures of N/A. FCF margin is 5.1%.
How does GNW compare to other Finance stocks?
Vs Finance sector averages: Net margin 2.6% (avg: 25%), ROE 0.5% (avg: 12%), current ratio N/A (avg: 1.2).