Loading...

We've got a brand new version of Simply Wall St! Try it out

Genworth Mortgage Insurance Australia

ASX:GMA
Snowflake Description

Fair value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GMA
ASX
A$2B
Market Cap
  1. Home
  2. AU
  3. Banks
Company description

Genworth Mortgage Insurance Australia Limited, through its subsidiaries, engages in the loan mortgage insurance business in Australia. The last earnings update was 16 days ago. More info.


Add to Portfolio Compare Print
  • Genworth Mortgage Insurance Australia has significant price volatility in the past 3 months.
GMA Share Price and Events
7 Day Returns
-6.5%
ASX:GMA
-3.3%
AU Mortgage
0%
AU Market
1 Year Returns
78.4%
ASX:GMA
42.3%
AU Mortgage
15.3%
AU Market
GMA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Genworth Mortgage Insurance Australia (GMA) -6.5% 6.9% 30.1% 78.4% 37.9% -2.4%
AU Mortgage -3.3% 4.5% 21% 42.3% 19.4% -11.2%
AU Market 0% 0.5% 4.7% 15.3% 21.6% 20.7%
1 Year Return vs Industry and Market
  • GMA outperformed the Mortgage industry which returned 42.3% over the past year.
  • GMA outperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
GMA
Industry
5yr Volatility vs Market

GMA Value

 Is Genworth Mortgage Insurance Australia undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Genworth Mortgage Insurance Australia to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Genworth Mortgage Insurance Australia.

ASX:GMA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= A$3.92 * 7%
A$0.27
Book Value of Equity per Share Median Book Value from the past 5 years. A$3.92
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:GMA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.835 (1 + (1- 30%) (12.41%))
0.938
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.938 * 5.96%)
7.9%

Discounted Cash Flow Calculation for ASX:GMA using Excess Returns Model Model

The calculations below outline how an intrinsic value for Genworth Mortgage Insurance Australia is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:GMA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7% – 7.9%) * A$3.92)
A$-0.04
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$-0.04 / (7.9% - 2.31%)
A$-0.65
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$3.92 + A$-0.65
A$3.27
ASX:GMA Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.27
Current discount Discount to share price of A$3.89
= -1 x (A$3.89 - A$3.27) / A$3.27
-19%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Genworth Mortgage Insurance Australia is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Genworth Mortgage Insurance Australia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Genworth Mortgage Insurance Australia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:GMA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in AUD A$0.31
ASX:GMA Share Price ** ASX (2019-11-15) in AUD A$3.89
Global Mortgage Industry PE Ratio Median Figure of 174 Publicly-Listed Mortgage Companies 13.93x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Genworth Mortgage Insurance Australia.

ASX:GMA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:GMA Share Price ÷ EPS (both in AUD)

= 3.89 ÷ 0.31

12.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Genworth Mortgage Insurance Australia is good value based on earnings compared to the Global Mortgage industry average.
  • Genworth Mortgage Insurance Australia is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Genworth Mortgage Insurance Australia's expected growth come at a high price?
Raw Data
ASX:GMA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-17.7%per year
Global Mortgage Industry PEG Ratio Median Figure of 73 Publicly-Listed Mortgage Companies 1.02x
Australia Market PEG Ratio Median Figure of 346 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

ASX:GMA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.6x ÷ -17.7%

-0.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Genworth Mortgage Insurance Australia earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Genworth Mortgage Insurance Australia's assets?
Raw Data
ASX:GMA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in AUD A$3.93
ASX:GMA Share Price * ASX (2019-11-15) in AUD A$3.89
Australia Mortgage Industry PB Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 0.99x
Australia Market PB Ratio Median Figure of 1,585 Publicly-Listed Companies 1.71x
ASX:GMA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:GMA Share Price ÷ Book Value per Share (both in AUD)

= 3.89 ÷ 3.93

0.99x

* Primary Listing of Genworth Mortgage Insurance Australia.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Genworth Mortgage Insurance Australia is good value based on assets compared to the AU Mortgage industry average.
X
Value checks
We assess Genworth Mortgage Insurance Australia's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Genworth Mortgage Insurance Australia has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GMA Future Performance

 How is Genworth Mortgage Insurance Australia expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-17.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Genworth Mortgage Insurance Australia expected to grow at an attractive rate?
  • Genworth Mortgage Insurance Australia's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Genworth Mortgage Insurance Australia's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Genworth Mortgage Insurance Australia's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:GMA Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:GMA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -17.7%
ASX:GMA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 7.9%
Global Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 7.5%
Global Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:GMA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:GMA Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 502 93 1
2020-12-31 502 88 1
2019-12-31 403 134 1
2019-11-15
ASX:GMA Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-09-30 450 127
2019-06-30 434 124 122
2019-03-31 420 115
2018-12-31 359 101 76
2018-09-30 375 90
2018-06-30 401 44 102
2018-03-31 407 105
2017-12-31 474 59 149
2017-09-30 470 141
2017-06-30 507 105 156
2017-03-31 564 188
2016-12-31 579 102 203

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Genworth Mortgage Insurance Australia's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Genworth Mortgage Insurance Australia's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:GMA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Genworth Mortgage Insurance Australia Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GMA Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.23 0.23 0.23 1.00
2020-12-31 0.23 0.25 0.21 2.00
2019-12-31 0.32 0.32 0.31 2.00
2019-11-15
ASX:GMA Past Financials Data
Date (Data in AUD Millions) EPS *
2019-09-30 0.31
2019-06-30 0.28
2019-03-31
2018-12-31 0.16
2018-09-30
2018-06-30 0.21
2018-03-31
2017-12-31 0.30
2017-09-30
2017-06-30 0.31
2017-03-31
2016-12-31 0.37

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Genworth Mortgage Insurance Australia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Genworth Mortgage Insurance Australia's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Genworth Mortgage Insurance Australia has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GMA Past Performance

  How has Genworth Mortgage Insurance Australia performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Genworth Mortgage Insurance Australia's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Genworth Mortgage Insurance Australia's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Genworth Mortgage Insurance Australia's 1-year earnings growth exceeds its 5-year average (41.6% vs -23.3%)
  • Genworth Mortgage Insurance Australia's earnings growth has exceeded the Global Mortgage industry average in the past year (41.6% vs 17.8%).
Earnings and Revenue History
Genworth Mortgage Insurance Australia's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Genworth Mortgage Insurance Australia Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GMA Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 449.90 127.37 2.63
2019-06-30 433.90 121.88 2.63
2019-03-31 420.00 115.07 2.63
2018-12-31 359.20 75.67 2.63
2018-09-30 375.01 89.97 2.52
2018-06-30 400.97 102.41 2.52
2018-03-31 406.81 105.37 2.52
2017-12-31 473.81 149.17 2.52
2017-09-30 470.17 141.19 2.82
2017-06-30 506.85 155.95 2.82
2017-03-31 564.07 187.99 2.82
2016-12-31 578.87 203.09 2.82
2016-09-30 611.51 231.95 3.19
2016-06-30 633.61 250.75 3.19
2016-03-31 555.16 205.78 3.19
2015-12-31 577.76 227.98 3.19
2015-09-30 657.15 287.21 40.42
2015-06-30 627.15 285.71 2.08
2015-03-31 572.72 283.41 40.42
2014-12-31 435.92 215.16 2.08
2013-12-31 502.82 179.40
2012-12-31 612.92 164.01

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Genworth Mortgage Insurance Australia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Genworth Mortgage Insurance Australia used its assets more efficiently than the Global Mortgage industry average last year based on Return on Assets.
  • Genworth Mortgage Insurance Australia's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Genworth Mortgage Insurance Australia's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Genworth Mortgage Insurance Australia has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GMA Health

 How is Genworth Mortgage Insurance Australia's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Genworth Mortgage Insurance Australia's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Genworth Mortgage Insurance Australia Company Filings, last reported 1 month ago.

ASX:GMA Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,620.30 199.10 26.10
2019-06-30 1,722.27 198.76 435.02
2019-03-31 1,716.20 198.50 50.50
2018-12-31 1,737.30 198.17 399.27
2018-09-30 1,723.00 197.90 65.00
2018-06-30 1,821.92 197.59 928.71
2018-03-31 1,824.30 197.30 67.50
2017-12-31 1,922.19 197.04 1,094.82
2017-09-30 1,899.60 196.80 42.40
2017-06-30 1,983.80 196.50 1,221.42
2017-03-31 1,948.00 196.20 29.00
2016-12-31 1,967.38 195.97 393.99
2016-09-30 1,946.90 195.70 49.00
2016-06-30 2,035.18 195.47 356.42
2016-03-31 2,171.10 244.70 71.40
2015-12-31 2,218.75 244.42 603.08
2015-09-30 2,319.00 244.10 102.20
2015-06-30 2,454.11 139.03 460.51
2015-03-31 2,430.70 138.80 187.50
2014-12-31 2,500.48 138.58 571.49
2013-12-31 2,210.85 137.74 616.52
2012-12-31 2,166.38 136.99 381.20
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Unable to establish if Genworth Mortgage Insurance Australia has an acceptable proportion of non-loan assets without balance sheet data.
  • Unable to establish if Genworth Mortgage Insurance Australia's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.
  • Genworth Mortgage Insurance Australia reports no customer deposits, loans are made up entirely of borrowed funds.
  • Genworth Mortgage Insurance Australia's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if Genworth Mortgage Insurance Australia has a sufficient allowance for bad loans without relevant financial data.
  • Unable to establish if Genworth Mortgage Insurance Australia has an acceptable level of bad loans without bad loans data.
X
Financial health checks
We assess Genworth Mortgage Insurance Australia's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Genworth Mortgage Insurance Australia has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GMA Dividends

 What is Genworth Mortgage Insurance Australia's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
16.48%
Current annual income from Genworth Mortgage Insurance Australia dividends. Estimated to be 9.88% next year.
If you bought A$2,000 of Genworth Mortgage Insurance Australia shares you are expected to receive A$330 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Genworth Mortgage Insurance Australia's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Genworth Mortgage Insurance Australia's dividend is above the markets top 25% of dividend payers in Australia (5.58%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:GMA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Global Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 131 Stocks 2.5%
Australia Market Average Dividend Yield Market Cap Weighted Average of 391 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:GMA Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.16 2.00
2020-12-31 0.28 3.00
2019-12-31 0.64 3.00
2019-11-15
ASX:GMA Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-10-29 0.641 16.137
2019-07-30 0.399 12.030
2019-02-05 0.210 8.099
2018-10-31 0.200 9.027
2018-07-31 0.200 7.891
2018-02-27 0.260 10.576
2018-02-07 0.240 9.157
2018-02-06 0.260 9.387
2017-11-02 0.260 8.587
2017-08-01 0.260 8.879
2017-02-07 0.405 13.689
2016-08-02 0.458 15.269
2016-02-04 0.588 21.142
2015-02-11 0.186 5.459
2014-07-29 0.066 1.589

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Genworth Mortgage Insurance Australia has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Genworth Mortgage Insurance Australia only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Genworth Mortgage Insurance Australia's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Genworth Mortgage Insurance Australia's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Genworth Mortgage Insurance Australia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Genworth Mortgage Insurance Australia has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GMA Management

 What is the CEO of Genworth Mortgage Insurance Australia's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Georgette Nicholas
COMPENSATION A$1,968,809
TENURE AS CEO 3.8 years
CEO Bio

Ms. Georgette Cecelia Nicholas has served as Managing Director and Director of Genworth Mortgage Insurance Australia Limited (“Genworth”) since May 30, 2016 and has been its Chief Executive Officer in February 3, 2016 after four months as Acting Chief Executive Officer following joining the business as Chief Financial Officer in February 2014. She brings more than 30 years of financial and industry experience to the role including her extensive global experience in lenders mortgage insurance. In her prior role as Chief Financial Officer, she has effectively leveraged her financial acumen, industry experience and leadership skills across finance, audit, controllership, strategy, actuarial and investor relations. She has a deep understanding of the mortgage insurance business both in international markets as well as the United States having worked with Genworth for over ten years. Previously, she worked as Senior Vice President, Investor Relations, Public Relations and Rating Agencies with Genworth Financial Inc. Other senior roles she has held at Genworth include Chief Financial Officer, US Mortgage Insurance where she was a key member of the management team leading the business through the economic downturn in the US housing market and the GFC, and Global Controller for both US Mortgage Insurance and International Segments. Before joining Genworth in 2005, she was a Director at Deloitte & Touche providing services to companies in the insurance, real estate and broadcasting industries. Earlier in her career, she worked with Freed Maxick Sachs & Murphy, a top 100 accounting firm, in Buffalo, New York where she focused on audit, acquisitions and mergers, tax and strategic financial planning and prior to this as an Internal Auditor at ITT Corporation. She has a Bachelor of Science in Accounting from the University of Bridgeport, Connecticut and is a Certified Public Accountant and Chartered Global Management Accountant.

CEO Compensation
  • Georgette's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Georgette's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Genworth Mortgage Insurance Australia management team in years:

3.2
Average Tenure
  • The tenure for the Genworth Mortgage Insurance Australia management team is about average.
Management Team

Georgette Nicholas

TITLE
CEO, MD & Director
COMPENSATION
A$2M
TENURE
3.8 yrs

Andy Cormack

TITLE
Chief Risk Officer
COMPENSATION
A$692K
TENURE
4.1 yrs

Steven Degetto

TITLE
Chief Commercial Officer & Chair of Diversity and Inclusion Council
COMPENSATION
A$677K
TENURE
2.3 yrs

Michael Bencsik

TITLE
Chief Financial Officer
TENURE
0.8 yrs

Helen Karlis

TITLE
Head of Corporate Affairs & Investor Relations

Prue Milne

TITLE
General Counsel & Company Secretary
TENURE
3.2 yrs

Kate Svoboda

TITLE
Chief Human Resources Officer
TENURE
3.2 yrs

Richard Socratous

TITLE
Head of Strategic Partnerships
TENURE
2.2 yrs

Brad Dean

TITLE
Head of Strategy & Innovation
TENURE
1.7 yrs

Brady Weissel

TITLE
Assistant Company Secretary
TENURE
3.7 yrs
Board of Directors Tenure

Average tenure and age of the Genworth Mortgage Insurance Australia board of directors in years:

3.5
Average Tenure
57
Average Age
  • The tenure for the Genworth Mortgage Insurance Australia board of directors is about average.
Board of Directors

Ian MacDonald

TITLE
Independent Chairman of the Board
COMPENSATION
A$265K
AGE
65
TENURE
3.3 yrs

Georgette Nicholas

TITLE
CEO, MD & Director
COMPENSATION
A$2M
TENURE
3.5 yrs

Edna Tollifson

TITLE
Independent Director
COMPENSATION
A$175K
AGE
64
TENURE
7.8 yrs

David Foster

TITLE
Independent Director
COMPENSATION
A$175K
AGE
50
TENURE
3.5 yrs

Gai McGrath

TITLE
Independent Non-Executive Director
COMPENSATION
A$175K
AGE
57
TENURE
3.3 yrs

Duncan West

TITLE
Non-Executive Director
COMPENSATION
A$54K
TENURE
1.2 yrs

Stuart Take

TITLE
Director
TENURE
7.8 yrs

Jerome Upton

TITLE
Director
AGE
55
TENURE
7.8 yrs

Christine Patton

TITLE
Non-Executive Director
COMPENSATION
A$46K
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Genworth Mortgage Insurance Australia individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
01. Sep 19 Buy Duncan West Individual 26. Aug 19 26. Aug 19 2,318 A$3.01 A$6,976
28. Feb 19 Buy Christine Patton Individual 26. Feb 19 26. Feb 19 20,000 A$2.60 A$52,000
25. Feb 19 Buy David Foster Individual 22. Feb 19 22. Feb 19 3,937 A$2.54 A$10,000
29. Nov 18 Buy Gai McGrath Individual 28. Nov 18 28. Nov 18 23,000 A$2.17 A$49,869
26. Nov 18 Buy Ian MacDonald Individual 23. Nov 18 23. Nov 18 20,435 A$2.19 A$44,753
X
Management checks
We assess Genworth Mortgage Insurance Australia's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Genworth Mortgage Insurance Australia has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GMA News

Simply Wall St News

How Many Genworth Mortgage Insurance Australia Limited (ASX:GMA) Shares Do Institutions Own?

Check out our latest analysis for Genworth Mortgage Insurance Australia ASX:GMA Ownership Summary, August 27th 2019 What Does The Institutional Ownership Tell Us About Genworth Mortgage Insurance Australia? … As you can see, institutional investors own 23% of Genworth Mortgage Insurance Australia. … Insider Ownership Of Genworth Mortgage Insurance Australia The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Should You Investigate Genworth Mortgage Insurance Australia Limited (ASX:GMA) At AU$3.29?

It’s trading around 8.9% below my intrinsic value, which means if you buy Genworth Mortgage Insurance Australia today, you’d be paying a fair price for it. … Can we expect growth from Genworth Mortgage Insurance Australia? … If you are no longer interested in Genworth Mortgage Insurance Australia, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Is Genworth Mortgage Insurance Australia Limited's (ASX:GMA) CEO Pay Fair?

View our latest analysis for Genworth Mortgage Insurance Australia How Does Georgette Nicholas's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that Genworth Mortgage Insurance Australia Limited has a market cap of AU$1.2b, and is paying total annual CEO compensation of AU$2.0m. … Thus we can conclude that Georgette Nicholas receives more in total compensation than the median of a group of companies in the same market, and of similar size to Genworth Mortgage Insurance Australia Limited.

Simply Wall St -

Should You Be Concerned About Genworth Mortgage Insurance Australia Limited's (ASX:GMA) Historical Volatility?

Check out our latest analysis for Genworth Mortgage Insurance Australia What we can learn from GMA's beta value With a beta of 0.95, (which is quite close to 1) the share price of Genworth Mortgage Insurance Australia has historically been about as voltile as the broader market. … Genworth Mortgage Insurance Australia is a small cap stock with a market capitalisation of AU$1.2b. … What this means for you: It is probable that there is a link between the share price of Genworth Mortgage Insurance Australia and the broader market, since it has a beta value quite close to one.

Simply Wall St -

Read This Before Selling Genworth Mortgage Insurance Australia Limited (ASX:GMA) Shares

ASX:GMA Recent Insider Trading, May 23rd 2019 Genworth Mortgage Insurance Australia is not the only stock that insiders are buying. … Insiders at Genworth Mortgage Insurance Australia Have Bought Stock Recently Over the last three months, we've seen a bit of insider buying at Genworth Mortgage Insurance Australia. … On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Genworth Mortgage Insurance Australia stock.

Simply Wall St -

Do Institutions Own Shares In Genworth Mortgage Insurance Australia Limited (ASX:GMA)?

A look at the shareholders of Genworth Mortgage Insurance Australia Limited (ASX:GMA) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of AU$1.0b, Genworth Mortgage Insurance Australia is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Is Genworth Mortgage Insurance Australia Limited (ASX:GMA) A Risky Dividend Stock?

Dividend paying stocks like Genworth Mortgage Insurance Australia Limited (ASX:GMA) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends.. … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.. … In this case, Genworth Mortgage Insurance Australia likely looks attractive to dividend investors, given its 8.7% dividend yield and five-year payment history.!

Simply Wall St -

If You Had Bought Genworth Mortgage Insurance Australia (ASX:GMA) Shares Three Years Ago You'd Have A Total Return Of 34%

While it may not be enough for some shareholders, we think it is good to see the Genworth Mortgage Insurance Australia Limited (ASX:GMA) share price up 14% in a single quarter. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the three years that the share price fell, Genworth Mortgage Insurance Australia's earnings per share (EPS) dropped by 26% each year.

Simply Wall St -

When Should You Buy Genworth Mortgage Insurance Australia Limited (ASX:GMA)?

Genworth Mortgage Insurance Australia Limited (ASX:GMA), operating in the financial services industry based in Australia,. … As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Let’s take a look at Genworth Mortgage Insurance Australia’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Does The Hype Around Genworth Mortgage Insurance Australia Limited's (ASX:GMA) Growth Justify Its March Share Price?

Growth expectations for Genworth Mortgage Insurance Australia Limited (ASX:GMA) are high, but many investors are starting to ask whether its last close at A$2.5 can still be rationalized by the future potential. … View our latest analysis for Genworth Mortgage Insurance Australia? … Analysts are predicting good growth prospects for Genworth Mortgage Insurance Australia over the next couple of years

Simply Wall St -

GMA Company Info

Description

Genworth Mortgage Insurance Australia Limited, through its subsidiaries, engages in the loan mortgage insurance business in Australia. The company facilitates residential mortgage lending by transferring risk from lenders to lenders mortgage insurance (LMI) providers, primarily for high loan-to-value ratio residential mortgage loans. It offers LMI through flow and portfolio basis. The company was founded in 1965 and is headquartered in North Sydney, Australia. Genworth Mortgage Insurance Australia Limited is a subsidiary of Genworth Australian General Partnership.

Details
Name: Genworth Mortgage Insurance Australia Limited
GMA
Exchange: ASX
Founded: 1965
A$1,604,680,097
412,514,164
Website: http://www.genworth.com.au
Address: Genworth Mortgage Insurance Australia Limited
101 Miller Street,
Level 26,
North Sydney,
New South Wales, 2060,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX GMA Ordinary Shares Australian Securities Exchange AU AUD 20. May 2014
DB 0GI Ordinary Shares Deutsche Boerse AG DE EUR 20. May 2014
CHIA GMA Ordinary Shares Chi-X Australia AU AUD 20. May 2014
Number of employees
Current staff
Staff numbers
213
Genworth Mortgage Insurance Australia employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:38
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/10/30
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.