ONEMAIN HOLDINGS INC (OMF) Stock Fundamental Analysis
NYSE:OMF - New York Stock Exchange, Inc. - US68268W1036 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to OMF. OMF was compared to 53 industry peers in the Consumer Finance industry. OMF has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on OMF.
1. Profitability
1.1 Basic Checks
In the past year OMF was profitable.
OMF had a positive operating cash flow in the past year.
In the past 5 years OMF has always been profitable.
Each year in the past 5 years OMF had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.96%, OMF perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.95%, OMF is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 15.95% | ||
| ROIC | N/A |
ROA(3y)2.83%
ROA(5y)3.54%
ROE(3y)21.69%
ROE(5y)25.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of OMF (8.90%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OMF has declined.
OMF has a Operating Margin (12.22%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of OMF has declined.
OMF has a better Gross Margin (79.27%) than 76.92% of its industry peers.
In the last couple of years the Gross Margin of OMF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.22% | ||
| PM (TTM) | 8.9% | ||
| GM | 79.27% |
OM growth 3Y-30.55%
OM growth 5Y-12.35%
PM growth 3Y-30.43%
PM growth 5Y-13.02%
GM growth 3Y-0.77%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
OMF does not have a ROIC to compare to the WACC, probably because it is not profitable.
OMF has less shares outstanding than it did 1 year ago.
OMF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OMF is higher compared to a year ago.
2.2 Solvency
OMF has a debt to FCF ratio of 7.94. This is a slightly negative value and a sign of low solvency as OMF would need 7.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.94, OMF is in line with its industry, outperforming 50.00% of the companies in the same industry.
OMF has a Debt/Equity ratio of 6.72. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of OMF (6.72) is worse than 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.72 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.05%
2.3 Liquidity
A Current Ratio of 2.91 indicates that OMF has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.91, OMF is doing good in the industry, outperforming 71.15% of the companies in the same industry.
OMF has a Quick Ratio of 2.91. This indicates that OMF is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.91, OMF is doing good in the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
OMF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.94%.
OMF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.16% yearly.
Looking at the last year, OMF shows a small growth in Revenue. The Revenue has grown by 7.94% in the last year.
The Revenue has been growing slightly by 3.65% on average over the past years.
EPS 1Y (TTM)-9.94%
EPS 3Y-23.16%
EPS 5Y-6.16%
EPS Q2Q%-16.55%
Revenue 1Y (TTM)7.94%
Revenue growth 3Y4.79%
Revenue growth 5Y3.65%
Sales Q2Q%10.27%
3.2 Future
Based on estimates for the next years, OMF will show a very strong growth in Earnings Per Share. The EPS will grow by 28.53% on average per year.
The Revenue is expected to grow by 8.53% on average over the next years. This is quite good.
EPS Next Y27.11%
EPS Next 2Y29.44%
EPS Next 3Y28.53%
EPS Next 5YN/A
Revenue Next Year9.32%
Revenue Next 2Y7.9%
Revenue Next 3Y8.53%
Revenue Next 5YN/A
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
OMF is valuated reasonably with a Price/Earnings ratio of 11.08.
Based on the Price/Earnings ratio, OMF is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
OMF is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.72, the valuation of OMF can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OMF indicates a somewhat cheap valuation: OMF is cheaper than 71.15% of the companies listed in the same industry.
OMF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
OMF's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, OMF is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.4 | ||
| EV/EBITDA | 28.35 |
4.3 Compensation for Growth
OMF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OMF's earnings are expected to grow with 28.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y29.44%
EPS Next 3Y28.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.43%, OMF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.09, OMF pays a better dividend. On top of this OMF pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, OMF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.43% |
5.2 History
On average, the dividend of OMF grows each year by 6.78%, which is quite nice.
OMF has been paying a dividend for over 5 years, so it has already some track record.
OMF has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.78%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
OMF pays out 97.84% of its income as dividend. This is not a sustainable payout ratio.
OMF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.84%
EPS Next 2Y29.44%
EPS Next 3Y28.53%
54.17
-1.83 (-3.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners93.66%
Inst Owner Change5.15%
Ins Owners0.45%
Ins Owner Change0.62%
Market Cap6.47B
Analysts80
Price Target63.5 (17.22%)
Short Float %4.42%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.43% |
Yearly Dividend4.17
Dividend Growth(5Y)6.78%
DP97.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.66%
Min EPS beat(2)-0.04%
Max EPS beat(2)9.37%
EPS beat(4)3
Avg EPS beat(4)5.25%
Min EPS beat(4)-0.04%
Max EPS beat(4)9.37%
EPS beat(8)5
Avg EPS beat(8)-0.97%
EPS beat(12)8
Avg EPS beat(12)0.29%
EPS beat(16)12
Avg EPS beat(16)5.08%
Revenue beat(2)0
Avg Revenue beat(2)-3.52%
Min Revenue beat(2)-4.27%
Max Revenue beat(2)-2.78%
Revenue beat(4)1
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-4.27%
Max Revenue beat(4)3.9%
Revenue beat(8)2
Avg Revenue beat(8)3.16%
Revenue beat(12)6
Avg Revenue beat(12)14.65%
Revenue beat(16)10
Avg Revenue beat(16)21.59%
PT rev (1m)4.52%
PT rev (3m)11.28%
EPS NQ rev (1m)-10.94%
EPS NQ rev (3m)-14.77%
EPS NY rev (1m)-11.1%
EPS NY rev (3m)-11.31%
Revenue NQ rev (1m)-4.48%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)-5.61%
Revenue NY rev (3m)-6.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 8.72 | ||
| P/S | 1.13 | ||
| P/FCF | 2.4 | ||
| P/OCF | 2.4 | ||
| P/B | 2.03 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 28.35 |
EPS(TTM)4.89
EY9.03%
EPS(NY)6.22
Fwd EY11.47%
FCF(TTM)22.61
FCFY41.74%
OCF(TTM)22.61
OCFY41.74%
SpS47.93
BVpS26.73
TBVpS11.99
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 15.95% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 12.22% | ||
| PM (TTM) | 8.9% | ||
| GM | 79.27% | ||
| FCFM | 47.18% |
ROA(3y)2.83%
ROA(5y)3.54%
ROE(3y)21.69%
ROE(5y)25.75%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.84%
ROCE(5y)4.87%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-30.55%
OM growth 5Y-12.35%
PM growth 3Y-30.43%
PM growth 5Y-13.02%
GM growth 3Y-0.77%
GM growth 5Y-0.11%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.72 | ||
| Debt/FCF | 7.94 | ||
| Debt/EBITDA | 21.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.61 | ||
| Cash Conversion | 276.54% | ||
| Profit Quality | 530.26% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | N/A |
F-Score5
WACC7.05%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)398.37%
Profit Quality(5y)333.82%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.94%
EPS 3Y-23.16%
EPS 5Y-6.16%
EPS Q2Q%-16.55%
EPS Next Y27.11%
EPS Next 2Y29.44%
EPS Next 3Y28.53%
EPS Next 5YN/A
Revenue 1Y (TTM)7.94%
Revenue growth 3Y4.79%
Revenue growth 5Y3.65%
Sales Q2Q%10.27%
Revenue Next Year9.32%
Revenue Next 2Y7.9%
Revenue Next 3Y8.53%
Revenue Next 5YN/A
EBIT growth 1Y-16.88%
EBIT growth 3Y-27.23%
EBIT growth 5Y-9.16%
EBIT Next Year-46.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.15%
FCF growth 3Y6.3%
FCF growth 5Y2.7%
OCF growth 1Y7.15%
OCF growth 3Y6.3%
OCF growth 5Y2.7%