ONEMAIN HOLDINGS INC (OMF)
US68268W1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to OMF. OMF was compared to 52 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
OMF had positive earnings in the past year.
In the past year OMF had a positive cash flow from operations.
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
OMF has a Return On Assets (2.14%) which is comparable to the rest of the industry.
OMF has a Return On Equity of 17.08%. This is in the better half of the industry: OMF outperforms 73.08% 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
With a Profit Margin value of 9.79%, OMF perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
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 63.46% of its industry peers.
OMF's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 79.55%, OMF is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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.
OMF has less shares outstanding than it did 1 year ago.
OMF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, OMF has a worse debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 8.05, OMF is in line with its industry, outperforming 50.00% of the companies in the same industry.
OMF has a Debt/Equity ratio of 6.59. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.59, OMF is not doing good in the industry: 80.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.88%
2.3 Liquidity
A Current Ratio of 5.94 indicates that OMF has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.94, OMF belongs to the best of the industry, outperforming 90.38% 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.
OMF's Quick ratio of 5.94 is amongst the best of the industry. OMF outperforms 90.38% 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.
The Revenue has been growing slightly by 7.30% in the past year.
OMF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.56% yearly.
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
The Earnings Per Share is expected to grow by 16.43% on average over the next years. This is quite good.
Based on estimates for the next years, OMF will show a quite strong growth in Revenue. The Revenue will grow by 8.34% on average per year.
EPS Next Y-8.57%
EPS Next 2Y13.47%
EPS Next 3Y16.43%
EPS Next 5YN/A
Revenue Next Year14.75%
Revenue Next 2Y13.01%
Revenue Next 3Y8.34%
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
A Price/Earnings ratio of 10.14 indicates a reasonable valuation of OMF.
63.46% of the companies in the same industry are more expensive than OMF, based on the Price/Earnings ratio.
OMF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 7.42, the valuation of OMF can be described as very cheap.
Based on the Price/Forward Earnings ratio, OMF is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.73. OMF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OMF is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, OMF is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.36 | ||
| EV/EBITDA | 26.46 |
4.3 Compensation for Growth
OMF's earnings are expected to grow with 16.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)7.13
EPS Next 2Y13.47%
EPS Next 3Y16.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.13%, OMF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.49, OMF pays a better dividend. On top of this OMF pays more dividend than 94.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, OMF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.13% |
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.
OMF has decreased its dividend in the last 3 years.
Dividend Growth(5Y)56.05%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
90.15% of the earnings are spent on dividend by OMF. 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 2Y13.47%
EPS Next 3Y16.43%
ONEMAIN HOLDINGS INC
NYSE:OMF (12/20/2024, 8:04:00 PM)
After market: 51.91 0 (0%)51.91
+0.73 (+1.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change1.58%
Ins Owners0.36%
Ins Owner Change-0.89%
Market Cap6.20B
Analysts80
Price Target59.47 (14.56%)
Short Float %4.65%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.13% |
Dividend Growth(5Y)56.05%
DP90.15%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.99%
Min EPS beat(2)8.62%
Max EPS beat(2)9.37%
EPS beat(4)4
Avg EPS beat(4)5.41%
Min EPS beat(4)0.61%
Max EPS beat(4)9.37%
EPS beat(8)6
Avg EPS beat(8)-0.68%
EPS beat(12)9
Avg EPS beat(12)0.31%
EPS beat(16)13
Avg EPS beat(16)7.41%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-2.78%
Max Revenue beat(2)3.9%
Revenue beat(4)1
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-7.99%
Max Revenue beat(4)3.9%
Revenue beat(8)3
Avg Revenue beat(8)7.76%
Revenue beat(12)7
Avg Revenue beat(12)17.84%
Revenue beat(16)11
Avg Revenue beat(16)23.92%
PT rev (1m)5.22%
PT rev (3m)1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.49%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-5.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 7.42 | ||
| P/S | 1.11 | ||
| P/FCF | 2.36 | ||
| P/OCF | 2.36 | ||
| P/B | 1.93 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 26.46 |
EPS(TTM)5.12
EY9.86%
EPS(NY)6.99
Fwd EY13.47%
FCF(TTM)21.99
FCFY42.37%
OCF(TTM)21.99
OCFY42.37%
SpS46.9
BVpS26.88
TBVpS12.12
PEG (NY)N/A
PEG (5Y)7.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 17.08% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 13.18% | ||
| PM (TTM) | 9.79% | ||
| GM | 79.55% | ||
| FCFM | 46.89% |
ROA(3y)4.16%
ROA(5y)3.9%
ROE(3y)30.53%
ROE(5y)26.51%
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)5.7%
ROCE(5y)5.33%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | 8.05 | ||
| Debt/EBITDA | 20.91 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 259.64% | ||
| Profit Quality | 479.02% | ||
| Current Ratio | 5.94 | ||
| Quick Ratio | 5.94 | ||
| Altman-Z | N/A |
F-Score5
WACC6.88%
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)278.62%
Profit Quality(5y)283.02%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3Y-3.75%
EPS 5Y1.42%
EPS Q2Q%-19.75%
EPS Next Y-8.57%
EPS Next 2Y13.47%
EPS Next 3Y16.43%
EPS Next 5YN/A
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.41%
Revenue growth 5Y4.56%
Sales Q2Q%8.88%
Revenue Next Year14.75%
Revenue Next 2Y13.01%
Revenue Next 3Y8.34%
Revenue Next 5YN/A
EBIT growth 1Y-13.89%
EBIT growth 3Y-6.14%
EBIT growth 5Y4.1%
EBIT Next Year70.26%
EBIT Next 3Y30.09%
EBIT Next 5YN/A
FCF growth 1Y12.61%
FCF growth 3Y4.43%
FCF growth 5Y4.25%
OCF growth 1Y12.61%
OCF growth 3Y4.43%
OCF growth 5Y4.25%