ONEMAIN HOLDINGS INC (OMF) Stock Fundamental Analysis
NYSE:OMF - New York Stock Exchange, Inc. - US68268W1036 - Common Stock - Currency: USD
Taking everything into account, OMF scores 5 out of 10 in our fundamental rating. OMF was compared to 52 industry peers in the Consumer Finance industry. OMF has an average financial health and profitability rating. OMF may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 (1.96%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.95%, OMF is in the better half of the industry, outperforming 69.23% 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
OMF has a Profit Margin (8.90%) which is comparable to the rest of the industry.
OMF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.22%, OMF is in line with its industry, outperforming 55.77% of the companies in the same industry.
In the last couple of years the Operating Margin of OMF has declined.
OMF has a Gross Margin of 79.27%. This is in the better half of the industry: OMF outperforms 73.08% of its industry peers.
OMF's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, OMF has less shares outstanding
OMF has less shares outstanding than it did 5 years ago.
OMF has a worse debt/assets ratio than last year.
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.
OMF has a Debt to FCF ratio (7.94) which is in line with its industry peers.
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 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.72 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.9%
2.3 Liquidity
OMF has a Current Ratio of 2.91. This indicates that OMF is financially healthy and has no problem in meeting its short term obligations.
OMF has a better Current ratio (2.91) than 76.92% of its industry peers.
A Quick Ratio of 2.91 indicates that OMF has no problem at all paying its short term obligations.
The Quick ratio of OMF (2.91) is better than 76.92% of its industry peers.
| 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 -4.80%.
OMF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.16% yearly.
OMF shows a small growth in Revenue. In the last year, the Revenue has grown by 7.98%.
The Revenue has been growing slightly by 3.65% on average over the past years.
EPS 1Y (TTM)-4.8%
EPS 3Y-23.16%
EPS 5Y-6.16%
EPS Q2Q%18.62%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y4.79%
Revenue growth 5Y3.65%
Sales Q2Q%11.16%
3.2 Future
OMF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.54% yearly.
Based on estimates for the next years, OMF will show a quite strong growth in Revenue. The Revenue will grow by 9.92% on average per year.
EPS Next Y26.27%
EPS Next 2Y28.68%
EPS Next 3Y27.54%
EPS Next 5YN/A
Revenue Next Year9.95%
Revenue Next 2Y8.81%
Revenue Next 3Y9.92%
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
The Price/Earnings ratio is 9.73, which indicates a very decent valuation of OMF.
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 25.82, OMF is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.20, the valuation of OMF can be described as very cheap.
Based on the Price/Forward Earnings ratio, OMF is valued a bit cheaper than 71.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. OMF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 6.2 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OMF indicates a somewhat cheap valuation: OMF is cheaper than 78.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.21 | ||
| EV/EBITDA | 27.64 |
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.
A more expensive valuation may be justified as OMF's earnings are expected to grow with 27.54% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y28.68%
EPS Next 3Y27.54%
5. Dividend
5.1 Amount
OMF has a Yearly Dividend Yield of 8.39%, which is a nice return.
Compared to an average industry Dividend Yield of 4.26, OMF pays a better dividend. On top of this OMF pays more dividend than 94.23% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
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
97.84% of the earnings are spent on dividend by OMF. 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 2Y28.68%
EPS Next 3Y27.54%
50.19
-0.15 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners93.66%
Inst Owner Change-0.89%
Ins Owners0.45%
Ins Owner Change-0.09%
Market Cap5.97B
Analysts80
Price Target60.73 (21%)
Short Float %4.4%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
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)-3.85%
PT rev (3m)-3.45%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)0.9%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 6.2 | ||
| P/S | 1.04 | ||
| P/FCF | 2.21 | ||
| P/OCF | 2.21 | ||
| P/B | 1.87 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 27.64 |
EPS(TTM)5.16
EY10.28%
EPS(NY)8.1
Fwd EY16.13%
FCF(TTM)22.67
FCFY45.16%
OCF(TTM)22.67
OCFY45.16%
SpS48.04
BVpS26.8
TBVpS12.02
PEG (NY)0.37
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
WACC6.9%
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)-4.8%
EPS 3Y-23.16%
EPS 5Y-6.16%
EPS Q2Q%18.62%
EPS Next Y26.27%
EPS Next 2Y28.68%
EPS Next 3Y27.54%
EPS Next 5YN/A
Revenue 1Y (TTM)7.98%
Revenue growth 3Y4.79%
Revenue growth 5Y3.65%
Sales Q2Q%11.16%
Revenue Next Year9.95%
Revenue Next 2Y8.81%
Revenue Next 3Y9.92%
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%