Genworth Research Report From Broxton Capital

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Broxton Capital releases Genworth Update with Price Target $8.00

Los Angeles Based Investment Firm, Broxton Capital, issues an updated research report on Genworth Financial with a price target of $8.00

For Full Report and Important Disclosures;
https://www.broxtoncapital.com/broxtonupdates

Summary:

-2017 operating income up over 100% from 2016
-2017 proportional operating income before amortization (OIBA) of $1.4 billion (company being sold for $5.2 billion)
-Trailing PE of 2.75
-China Oceanwide deal pretty much dead, due to the increase in the payment for the un-stacking by Delaware
-There is no legal or regulatory requirement to add funds to GLIC (long term care sub)
-Most of the value lies in the mortgage insurance subsidiaries
-Additional facility brings 2018 holding company liquidity to over $1.5 billion

At this point GNW is a healthy viable company with operating income growth of 100% from 2016 to 2017 but the shares trade at an 80% discount to the market and a ridiculous 2.75 X earnings due to misconceptions on Long Term Care Liabilities and the upside limiting China Oceanwide buyout. The average analyst earnings estimates for 2018 is 99 cents. We also point out that GNW owns $125.00 in bonds per share and will be an extreme beneficiary as interest rates rise. Considering 2017, a 1% increase in portfolio interest received would have produced an additional $1.25 in pre-tax net income.

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Candace Johns
Broxton Capital
+1 (310) 208-2151
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