📊 GNW Key Takeaways
Is GNW a Good Investment? Thesis Analysis
Genworth Financial faces deteriorating profitability with net income declining 18% YoY despite near-flat revenue growth, indicating operational challenges within a competitive insurance market. The company's severely depressed returns on equity (2.5%) and assets (0.3%), combined with razor-thin 3.1% net margins, demonstrate structural profitability issues that make this an unattractive investment from a fundamental perspective.
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 GNW? Key Strengths
- Solid liquidity position with $2.0B in cash and equivalents providing financial flexibility
- Conservative leverage with 0.17x debt-to-equity ratio and adequate 4.1x interest coverage ratio
- Positive free cash flow generation of $327M supporting financial stability and potential shareholder returns
- 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 Investment Risks to Consider
- Significant profitability deterioration with net income down 18% YoY and diluted EPS down 20.6% indicating operational stress
- Severely depressed returns on equity (2.5%) and assets (0.3%) signaling poor capital efficiency and value destruction
- Stalled revenue growth at 0.1% YoY reflects limited top-line expansion and suggests persistent market headwinds or competitive pressure
- 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 return on equity trends - critical to determine if profitability decline reverses or accelerates
- Revenue growth rate and operating margin - essential to assess cost management and competitive positioning
- Cash flow sustainability - monitor if free cash flow remains stable amid earnings decline
- ROE
- Operating margin
GNW Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.5% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
GNW Profitability Ratios
GNW vs Finance Sector
How GENWORTH FINANCIAL INC compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GNW Overvalued or Undervalued?
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.
GNW Balance Sheet & Liquidity
GNW 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
GNW Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.9B | $122.0M | $0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GNW Capital Allocation
GNW SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for GENWORTH FINANCIAL INC (CIK: 0001276520)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772573097.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772573074.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772573043.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772573017.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772572975.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 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GNW's key strengths?
Claude: Solid liquidity position with $2.0B in cash and equivalents providing financial flexibility. Conservative leverage with 0.17x debt-to-equity ratio and adequate 4.1x interest coverage ratio. 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: Significant profitability deterioration with net income down 18% YoY and diluted EPS down 20.6% indicating operational stress. Severely depressed returns on equity (2.5%) and assets (0.3%) signaling poor capital efficiency and value destruction. 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 $7.3B.
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 $0.54.
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 April 2026, GENWORTH FINANCIAL INC has a SELL rating with 70% 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 2.5% (sector avg: 12%), net margin of 3.1% (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 $327.0M, with capital expenditures of N/A. FCF margin is 4.5%.
How does GNW compare to other Finance stocks?
Vs Finance sector averages: Net margin 3.1% (avg: 25%), ROE 2.5% (avg: 12%), current ratio N/A (avg: 1.2).