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Genworth Mortgage Insurance Australia Ltd
(Sydney:HLI)
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Rating:72Outperform
Price Target:
AU$5.50
â–²(1.66% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial quality (strong profitability and low leverage) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by contracting revenue and uneven cash-flow performance, alongside weak-to-mixed near-term technical momentum.
Positive Factors
Consistent profitability
Sustained high net margins since 2021 indicate durable underwriting discipline and pricing power in LMI. This profit consistency builds retained earnings and strengthens the firm's ability to absorb cyclical credit shocks and maintain capital distributions over the medium term.
Negative Factors
Multi-year revenue contraction
Sustained declines in premium revenue erode the core earnings base for an insurer that depends on new insurance written. A shrinking top line reduces scale, compresses investment float and may force tighter underwriting or pricing to restore growth, limiting medium-term growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent profitability
Sustained high net margins since 2021 indicate durable underwriting discipline and pricing power in LMI. This profit consistency builds retained earnings and strengthens the firm's ability to absorb cyclical credit shocks and maintain capital distributions over the medium term.
Read all positive factors
Genworth Mortgage Insurance Australia Ltd (HLI) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.43B
Dividend Yield32.5%
Average Volume (3M)1.16M
Price to Earnings (P/E)6.8
Beta (1Y)0.49
Revenue Growth-8.31%
EPS Growth-19.83%
CountryAU
Employees170
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.77
Shares Outstanding274,196,140
10 Day Avg. Volume874,032
30 Day Avg. Volume1,157,416
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)1.47
Price to Sales (P/S)3.18
P/FCF Ratio13.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.52Price Target Upside-16.45% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.59
Revenue Forecast (FY)AU$319.21M
Genworth Mortgage Insurance Australia Ltd Business Overview & Revenue Model
Company Description
Helia Group Limited, together with its subsidiaries, engages in the loan mortgage insurance business primarily in Australia. It offers Lenders Mortgage Insurance (LMI), which provides protection to lenders, helping them facilitate property purchas...
How the Company Makes Money
Genworth Mortgage Insurance Australia Ltd (HLI) primarily makes money by writing lenders mortgage insurance (LMI) policies for mortgage lenders. The core revenue stream is insurance premiums paid by lenders (often passed on to borrowers as an upfr...
Genworth Mortgage Insurance Australia Ltd Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
82
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 454.10M | 471.20M | 517.68M | 538.29M | 579.69M | 372.09M |
| Gross Profit | 421.60M | 471.20M | 517.68M | 511.71M | 466.24M | 372.09M |
| EBITDA | 302.80M | 362.20M | 475.98M | 421.37M | 303.02M | 290.26M |
| Net Income | 211.20M | 244.90M | 231.54M | 275.06M | 186.77M | 192.82M |
Balance Sheet | ||||||
| Total Assets | 2.26B | 2.54B | 2.93B | 3.20B | 3.46B | 3.91B |
| Cash, Cash Equivalents and Short-Term Investments | 81.90M | 45.70M | 112.38M | 57.05M | 23.84M | 76.72M |
| Total Debt | 4.20M | 8.50M | 196.52M | 197.29M | 191.06M | 195.89M |
| Total Liabilities | 1.37B | 1.52B | 1.85B | 2.06B | 2.26B | 2.36B |
| Stockholders Equity | 892.50M | 1.02B | 1.08B | 1.14B | 1.21B | 1.56B |
Cash Flow | ||||||
| Free Cash Flow | 46.90M | 108.40M | 134.33M | -18.27M | 75.51M | 344.67M |
| Operating Cash Flow | 46.90M | 108.40M | 134.43M | -18.03M | 76.11M | 344.67M |
| Investing Cash Flow | 303.70M | 324.00M | 213.84M | 397.10M | 199.89M | -344.26M |
| Financing Cash Flow | -536.50M | -499.10M | -292.93M | -345.90M | -328.96M | -27.69M |
Genworth Mortgage Insurance Australia Ltd Technical Analysis
Positive
5.41
Price Trends
5.02
Positive
4.87
Positive
4.71
Positive
Market Momentum
0.04
Positive
56.57
Neutral
49.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HLI, the sentiment is Positive. The current price of 5.41 is above the 20-day moving average (MA) of 5.15, above the 50-day MA of 5.02, and above the 200-day MA of 4.71, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 49.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HLI.
Genworth Mortgage Insurance Australia Ltd Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$1.43B | 6.75 | 22.10% | 32.50% | -8.31% | -19.83% | |
72 Outperform | AU$33.79B | 11.24 | 18.63% | 4.92% | 3.37% | 6.40% | |
69 Neutral | AU$20.53B | 20.18 | 10.06% | 3.47% | -2.94% | -31.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | AU$18.82B | 18.72 | 14.06% | 3.99% | 9.36% | -24.51% | |
60 Neutral | AU$876.30M | 8.13 | 12.29% | 8.01% | -0.65% | 8.02% | |
56 Neutral | AU$1.08B | 7.55 | 12.12% | 13.87% | -3.49% | 7.16% |
* Financial Sector Average
AU:HLI
Genworth Mortgage Insurance Australia Ltd
5.20
0.62
13.56%
AU:IAG
Insurance Australia Group Limited
8.02
-0.13
-1.60%
AU:QBE
QBE Insurance Group Limited
22.57
2.79
14.11%
AU:SUN
Suncorp Group
19.11
-0.89
-4.45%
AU:PPM
Pepper Money Ltd
1.98
-0.17
-7.74%
AU:LFG
Liberty Financial Group Ltd
3.55
0.05
1.43%
Genworth Mortgage Insurance Australia Ltd Corporate Events
Helia says no undisclosed news behind share price fall after ASX query
Jul 21, 2026
Helia Group Limited has responded to an ASX price query after its share price fell from $5.58 to $5.07 and trading volumes spiked on 21 July 2026. The company stated it is not aware of any undisclosed information that could explain the recent trad...
Helia sets date for release of 2026 half-year results and investor briefing
Jul 9, 2026
Helia Group Limited announced it will release its financial results for the half year ended 30 June 2026 to the Australian Securities Exchange before the market opens on Tuesday, 11 August 2026. The company will host a conference call and webcast ...
Helia Secures Four-Year Exclusive LMI Deal with ING Australia
Jul 5, 2026
Helia Group Limited has secured a new four-year agreement to be the exclusive provider of lenders mortgage insurance to ING Bank (Australia) Limited, effective from 1 July 2026. The deal renews a key relationship, as the prior exclusive arrangemen...
Helia names new CEO and confirms CFO appointment in leadership reshuffle
Jun 9, 2026
Helia Group Limited has appointed industry veteran Mark Senkevics as its new Chief Executive Officer and Managing Director, effective on or before 1 December 2026, following an extensive search. He will succeed interim CEO Michael Cant, whose cont...
Helia Group Seeks ASX Quotation for New Shares Issued Under Employee Incentive Plan
Jun 3, 2026
Helia Group Limited has applied for quotation on the ASX of 28,800 new ordinary fully paid shares, issued on 5 June 2026 under its employee incentive scheme. The move modestly increases the company’s quoted capital base and reflects ongoing ...
Helia Shareholders Back Board and Pay, Avoiding Spill at 2026 AGM
May 7, 2026
Helia Group Limited has released the voting outcomes of its 2026 Annual General Meeting, confirming that all resolutions put to shareholders, including the adoption of the remuneration report and the re-election of directors Leona Murphy and Andre...
Helia Investors Back Board and Pay Ahead of 2026 AGM
May 7, 2026
Helia Group Limited has released a proxy summary detailing direct and proxy voting outcomes submitted ahead of its 2026 Annual General Meeting, including strong support for the remuneration report and the re-election of directors Leona Murphy and ...
Helia Stresses Resilience After Loss of Major Client as Profit and Capital Returns Climb
May 7, 2026
Helia reported that, despite losing its largest customer and facing a shrinking addressable market due to the Federal Government’s expanded 5% Deposit Scheme, it delivered a strong 2025 financial performance, with underlying net profit after...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.