ONEMAIN HOLDINGS INC (OMF)
US68268W1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to OMF. OMF was compared to 51 industry peers in the Consumer Finance industry. Both the profitability and the financial health of OMF get a neutral evaluation. Nothing too spectacular is happening here. OMF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year OMF was profitable.
In the past year OMF had a positive cash flow from operations.
OMF had positive earnings in each of the past 5 years.
In the past 5 years OMF always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.14%, OMF perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
OMF's Return On Equity of 17.08% is fine compared to the rest of the industry. OMF outperforms 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 17.08% | ||
| ROIC | N/A |
ROA(3y)4.16%
ROA(5y)3.9%
ROE(3y)30.53%
ROE(5y)26.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of OMF (9.79%) is better than 62.75% of its industry peers.
In the last couple of years the Profit Margin of OMF has grown nicely.
OMF has a Operating Margin of 13.18%. This is in the better half of the industry: OMF outperforms 60.78% of its industry peers.
OMF's Operating Margin has been stable in the last couple of years.
OMF has a Gross Margin of 79.55%. This is in the better half of the industry: OMF outperforms 76.47% of its industry peers.
OMF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.18% | ||
| PM (TTM) | 9.79% | ||
| GM | 79.55% |
OM growth 3Y-8.36%
OM growth 5Y-0.43%
PM growth 3Y-6.5%
PM growth 5Y2.79%
GM growth 3Y0.66%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
OMF does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for OMF has been reduced compared to 1 year ago.
The number of shares outstanding for OMF has been reduced compared to 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 8.05. This is a slightly negative value and a sign of low solvency as OMF would need 8.05 years to pay back of all of its debts.
OMF has a Debt to FCF ratio (8.05) which is comparable to the rest of the industry.
OMF has a Debt/Equity ratio of 6.59. This is a high value indicating a heavy dependency on external financing.
OMF's Debt to Equity ratio of 6.59 is on the low side compared to the rest of the industry. OMF is outperformed by 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.75%
2.3 Liquidity
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.
OMF has a better Current ratio (5.94) than 90.20% of its industry peers.
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.
OMF's Quick ratio of 5.94 is amongst the best of the industry. OMF outperforms 90.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.94 | ||
| Quick Ratio | 5.94 |
3. Growth
3.1 Past
The earnings per share for OMF have decreased by -8.57% in the last year.
The Earnings Per Share has been growing slightly by 1.42% on average over the past years.
Looking at the last year, OMF shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
Measured over the past years, OMF shows a small growth in Revenue. The Revenue has been growing by 4.56% on average per year.
EPS 1Y (TTM)-8.57%
EPS 3Y-3.75%
EPS 5Y1.42%
EPS Q2Q%-19.75%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.41%
Revenue growth 5Y4.56%
Sales Q2Q%8.88%
3.2 Future
OMF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.47% yearly.
The Revenue is expected to grow by 7.73% on average over the next years.
EPS Next Y-8.71%
EPS Next 2Y13.61%
EPS Next 3Y16.47%
EPS Next 5YN/A
Revenue Next Year15.92%
Revenue Next 2Y13.75%
Revenue Next 3Y7.73%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.85, the valuation of OMF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of OMF is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.96, OMF is valued rather cheaply.
The Price/Forward Earnings ratio is 7.93, which indicates a rather cheap valuation of OMF.
76.47% of the companies in the same industry are more expensive than OMF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, OMF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 7.93 |
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 72.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.53 | ||
| EV/EBITDA | 26.9 |
4.3 Compensation for Growth
OMF has a very decent profitability rating, which may justify a higher PE ratio.
OMF's earnings are expected to grow with 16.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)7.64
EPS Next 2Y13.61%
EPS Next 3Y16.47%
5. Dividend
5.1 Amount
OMF has a Yearly Dividend Yield of 7.60%, which is a nice return.
Compared to an average industry Dividend Yield of 4.08, OMF pays a better dividend. On top of this OMF pays more dividend than 94.12% of the companies listed in the same industry.
OMF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
5.2 History
On average, the dividend of OMF grows each year by 56.05%, which is quite nice.
OMF has been paying a dividend for over 5 years, so it has already some track record.
The dividend of OMF decreased recently.
Dividend Growth(5Y)56.05%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
OMF pays out 90.15% of its income as dividend. This is not a sustainable payout ratio.
OMF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP90.15%
EPS Next 2Y13.61%
EPS Next 3Y16.47%
ONEMAIN HOLDINGS INC
NYSE:OMF (11/21/2024, 8:04:00 PM)
After market: 55.57 0 (0%)55.57
+0.61 (+1.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 7.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)7.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 17.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.18% | ||
| PM (TTM) | 9.79% | ||
| GM | 79.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.94 | ||
| Quick Ratio | 5.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3Y-3.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y