NYSE:OMF: good value for what you're paying.

Last update: May 23, 2024

Discover ONEMAIN HOLDINGS INC (NYSE:OMF), an undervalued stock highlighted by our stock screener. NYSE:OMF showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

ChartMill's Evaluation of 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 7 out of 10:

A Price/Earnings ratio of 8.89 indicates a reasonable valuation of OMF.
Based on the Price/Earnings ratio, OMF is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.49, OMF is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.21, the valuation of OMF can be described as very cheap.
Based on the Price/Forward Earnings ratio, OMF is valued a bit cheaper than 72.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OMF to the average of the S&P500 Index (20.06), we can say OMF is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, OMF is valued a bit cheaper than 72.55% of the companies in the same industry.
OMF has a very decent profitability rating, which may justify a higher PE ratio.
OMF's earnings are expected to grow with 20.06% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:OMF

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:OMF, the assigned 6 is a significant indicator of profitability:

OMF has a better Return On Assets (2.58%) than 62.75% of its industry peers.
The Return On Equity of OMF (19.20%) is better than 86.27% of its industry peers.
OMF's Profit Margin has improved in the last couple of years.
The Operating Margin of OMF (15.05%) is better than 62.75% of its industry peers.
OMF has a Gross Margin of 80.34%. This is in the better half of the industry: OMF outperforms 78.43% of its industry peers.

Health Examination 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.
The Quick ratio of OMF (5.94) is better than 88.24% of its industry peers.

Understanding NYSE:OMF's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:OMF has achieved a 5 out of 10:

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.