ONITY GROUP INC (ONIT) Stock Fundamental Analysis
NYSE:ONIT - New York Stock Exchange, Inc. - US6757466064 - Common Stock - Currency: USD
Taking everything into account, ONIT scores 4 out of 10 in our fundamental rating. ONIT was compared to 101 industry peers in the Financial Services industry. While ONIT is still in line with the averages on profitability rating, there are concerns on its financial health. ONIT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ONIT was profitable.
ONIT had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ONIT reported negative net income in multiple years.
In multiple years ONIT reported negative operating cash flow during the last 5 years.
1.2 Ratios
ONIT has a worse Return On Assets (0.11%) than 71.29% of its industry peers.
ONIT has a worse Return On Equity (3.10%) than 66.34% of its industry peers.
The Return On Invested Capital of ONIT (2.86%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 3.1% | ||
| ROIC | 2.86% |
ROA(3y)-0.03%
ROA(5y)N/A
ROE(3y)-1.15%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.41%, ONIT is doing worse than 70.30% of the companies in the same industry.
ONIT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 41.84%, ONIT belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
In the last couple of years the Operating Margin of ONIT has grown nicely.
Looking at the Gross Margin, with a value of 95.28%, ONIT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ONIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.84% | ||
| PM (TTM) | 1.41% | ||
| GM | 95.28% |
OM growth 3Y12.97%
OM growth 5YN/A
PM growth 3Y25.74%
PM growth 5YN/A
GM growth 3Y6.34%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ONIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ONIT has more shares outstanding than it did 1 year ago.
The debt/assets ratio for ONIT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.20, we must say that ONIT is in the distress zone and has some risk of bankruptcy.
ONIT's Altman-Z score of 0.20 is on the low side compared to the rest of the industry. ONIT is outperformed by 60.40% of its industry peers.
A Debt/Equity ratio of 25.70 is on the high side and indicates that ONIT has dependencies on debt financing.
The Debt to Equity ratio of ONIT (25.70) is worse than 94.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 25.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.2 |
ROIC/WACC1.28
WACC2.24%
2.3 Liquidity
ONIT has a Current Ratio of 1.90. This is a normal value and indicates that ONIT is financially healthy and should not expect problems in meeting its short term obligations.
ONIT has a better Current ratio (1.90) than 73.27% of its industry peers.
A Quick Ratio of 1.90 indicates that ONIT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.90, ONIT is doing good in the industry, outperforming 74.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 149.28% over the past year.
The Earnings Per Share has been growing by 28.88% on average over the past years. This is a very strong growth
Looking at the last year, ONIT shows a decrease in Revenue. The Revenue has decreased by -8.50% in the last year.
The Revenue has been decreasing by -2.41% on average over the past years.
EPS 1Y (TTM)149.28%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%39.83%
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%-18.93%
3.2 Future
ONIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.00% yearly.
Based on estimates for the next years, ONIT will show a small growth in Revenue. The Revenue will grow by 7.00% on average per year.
EPS Next Y118.77%
EPS Next 2Y70.13%
EPS Next 3Y46%
EPS Next 5YN/A
Revenue Next Year2.94%
Revenue Next 2Y6.58%
Revenue Next 3Y7%
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.
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 7.77 indicates a rather cheap valuation of ONIT.
Compared to the rest of the industry, the Price/Earnings ratio of ONIT indicates a rather cheap valuation: ONIT is cheaper than 81.19% of the companies listed in the same industry.
ONIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 3.55, which indicates a rather cheap valuation of ONIT.
Based on the Price/Forward Earnings ratio, ONIT is valued cheaper than 99.01% of the companies in the same industry.
ONIT 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 | 7.77 | ||
| Fwd PE | 3.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ONIT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.48 |
4.3 Compensation for Growth
ONIT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ONIT's earnings are expected to grow with 46.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y70.13%
EPS Next 3Y46%
5. Dividend
5.1 Amount
No dividends for ONIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.94
-0.54 (-1.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners53.74%
Inst Owner ChangeN/A
Ins Owners17.41%
Ins Owner Change0%
Market Cap251.37M
Analysts86
Price Target44.63 (39.73%)
Short Float %1.01%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)50.11%
Min EPS beat(2)-4.36%
Max EPS beat(2)104.57%
EPS beat(4)2
Avg EPS beat(4)-106.45%
Min EPS beat(4)-734.78%
Max EPS beat(4)208.77%
EPS beat(8)3
Avg EPS beat(8)-4213.3%
EPS beat(12)5
Avg EPS beat(12)-2689.03%
EPS beat(16)7
Avg EPS beat(16)-2304.03%
Revenue beat(2)1
Avg Revenue beat(2)-3.92%
Min Revenue beat(2)-10.03%
Max Revenue beat(2)2.19%
Revenue beat(4)2
Avg Revenue beat(4)-4.32%
Min Revenue beat(4)-13.3%
Max Revenue beat(4)3.88%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.78%
EPS NQ rev (1m)39.33%
EPS NQ rev (3m)39.33%
EPS NY rev (1m)24.8%
EPS NY rev (3m)27.94%
Revenue NQ rev (1m)1.92%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)-1.5%
Revenue NY rev (3m)-4.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 3.55 | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.48 |
EPS(TTM)4.11
EY12.87%
EPS(NY)8.99
Fwd EY28.15%
FCF(TTM)-27.89
FCFYN/A
OCF(TTM)-9.4
OCFYN/A
SpS130.69
BVpS59.49
TBVpS-223.56
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 3.1% | ||
| ROCE | 3.31% | ||
| ROIC | 2.86% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 3.8% | ||
| OM | 41.84% | ||
| PM (TTM) | 1.41% | ||
| GM | 95.28% | ||
| FCFM | N/A |
ROA(3y)-0.03%
ROA(5y)N/A
ROE(3y)-1.15%
ROE(5y)N/A
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)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y12.97%
OM growth 5YN/A
PM growth 3Y25.74%
PM growth 5YN/A
GM growth 3Y6.34%
GM growth 5YN/A
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 25.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 27.36 | ||
| Cap/Depr | 1547.87% | ||
| Cap/Sales | 14.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 0.2 |
F-Score4
WACC2.24%
ROIC/WACC1.28
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)149.28%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%39.83%
EPS Next Y118.77%
EPS Next 2Y70.13%
EPS Next 3Y46%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%-18.93%
Revenue Next Year2.94%
Revenue Next 2Y6.58%
Revenue Next 3Y7%
Revenue Next 5YN/A
EBIT growth 1Y4.97%
EBIT growth 3Y10.25%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A