Genworth Financial Inc Common Stock (GNW)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $378 million in annual free cash flow (11.0% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.25, providing financial flexibility

Concerns

• Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Genworth Financial Inc Common Stock is a small-cap financial services company valued at $3.4 billion. Revenue stands at $7.3 billion. From a quality standpoint, Genworth shows distressed Altman Z-Score of 0.1 warrants caution and modest 4% ROE. On valuation, the stock is reasonably priced at 16.4x earnings, with offers a 46% margin of safety vs Graham Number of $16. Growth dynamics show revenue growing at 0.3% and profit growth of 300.0%. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $378 million in annual free cash flow (11.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer