NYSE:OMF is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screener has spotted ONEMAIN HOLDINGS INC (NYSE:OMF) as an undervalued stock with solid fundamentals. NYSE:OMF shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Understanding NYSE:OMF's Valuation Score

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:OMF has received a 7 out of 10:

• The Price/Earnings ratio is 9.16, which indicates a very decent valuation of OMF.
• Compared to the rest of the industry, the Price/Earnings ratio of OMF indicates a somewhat cheap valuation: OMF is cheaper than 60.78% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 26.14, OMF is valued rather cheaply.
• A Price/Forward Earnings ratio of 8.35 indicates a reasonable valuation of OMF.
• OMF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OMF is cheaper than 62.75% of the companies in the same industry.
• OMF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
• OMF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OMF is cheaper than 62.75% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, OMF is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• OMF has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as OMF's earnings are expected to grow with 20.06% in the coming years.

A Closer Look at Profitability for NYSE:OMF

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:OMF scores a 6 out of 10:

• Looking at the Return On Assets, with a value of 2.64%, OMF is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
• OMF's Return On Equity of 20.12% is amongst the best of the industry. OMF outperforms 84.31% 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 66.67% of its industry peers.
• Looking at the Gross Margin, with a value of 80.75%, OMF is in the better half of the industry, outperforming 76.47% of the companies in the same industry.

Health Analysis for NYSE:OMF

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:OMF has earned 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 88.24% of the companies in the same industry.
• A Quick Ratio of 5.94 indicates that OMF has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 5.94, OMF belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.

Assessing Growth Metrics for NYSE:OMF

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:OMF, the assigned 5 reflects its growth potential:

• OMF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.06% yearly.
• The Revenue is expected to grow by 12.18% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue 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.

Check the latest full fundamental report of OMF for a complete fundamental analysis.

Keep in mind

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.