NYSE:OMF is probably undervalued for the fundamentals it is displaying.

Last update: Feb 26, 2024

Our stock screening tool has pinpointed ONEMAIN HOLDINGS INC (NYSE:OMF) as an undervalued stock. NYSE:OMF maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Exploring NYSE:OMF's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:OMF boasts a 8 out of 10:

OMF is valuated reasonably with a Price/Earnings ratio of 8.56.
Based on the Price/Earnings ratio, OMF is valued a bit cheaper than the industry average as 64.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.15, OMF is valued rather cheaply.
OMF is valuated cheaply with a Price/Forward Earnings ratio of 6.80.
71.70% of the companies in the same industry are more expensive than OMF, based on the Price/Forward Earnings ratio.
OMF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.62.
Based on the Price/Free Cash Flow ratio, OMF is valued a bit cheaper than the industry average as 73.58% of the companies are valued more expensively.
OMF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of OMF may justify a higher PE ratio.
A more expensive valuation may be justified as OMF's earnings are expected to grow with 24.11% in the coming years.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:OMF was assigned a score of 6 for profitability:

The Return On Assets of OMF (2.64%) is better than 64.15% of its industry peers.
OMF has a better Return On Equity (20.12%) than 84.91% of its industry peers.
OMF's Profit Margin has improved in the last couple of years.
OMF has a Operating Margin of 15.87%. This is in the better half of the industry: OMF outperforms 66.04% of its industry peers.
OMF has a Gross Margin of 80.75%. This is in the better half of the industry: OMF outperforms 73.58% of its industry peers.

Evaluating Health: NYSE:OMF

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:OMF scores a 5 out of 10:

OMF has a Current Ratio of 5.94. This indicates that OMF is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.94, OMF belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
OMF has a Quick Ratio of 5.94. This indicates that OMF is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.94, OMF belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.

Deciphering NYSE:OMF's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:OMF scores a 4 out of 10:

The Earnings Per Share is expected to grow by 24.11% on average over the next years. This is a very strong growth
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of OMF contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.