As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Genworth Financial Inc (GNW)
Genworth Financial is a diversified insurance holding company that provides various mortgage and life insurance products. The company has three main operating business segments: Enact, U.S. Life Insurance, and Runoff. The company’s product portfolio includes various financial products such as traditional life insurance, mortgage insurance, fixed annuities, and variable annuities. most of the revenue is generated by the company’s U.S. life insurance segment that offers long-term care insurance, fixed annuity, and traditional life insurance products. The company earns most of its revenue in the United States.
A quick look at the share price history (below) over the past twelve months shows that the price is up 60%. Here’s why the company is undervalued.
Summary
Market Cap: $2.9 Billion
Enterprise Value: $3.5 Billion
Operating Earnings
Operating Earnings: $1.08 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 3.30
Free Cash Flow (TTM)
Free Cash Flow: $1.05 Billion
FCF/EV Yield %:
FCF/EV Yield: 36.10
Shareholder Yield %:
Shareholder Yield: 2.20
Other Indicators
Historical Sharpe Ratio (5Y): 0.51
Historical Sortino (5Y): 0.91
ROA (5 Year Avge%): 2
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