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 6 out of 10 to OMF. OMF was compared to 53 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 valued quite cheap, while showing a decent growth score. This is a good combination! Finally OMF also has an excellent dividend rating. This makes OMF very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year OMF was profitable.
OMF had a positive operating cash flow in the past year.
OMF had positive earnings in each of the past 5 years.
OMF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.49%, OMF is in line with its industry, outperforming 56.60% of the companies in the same industry.
OMF's Return On Equity of 19.93% is amongst the best of the industry. OMF outperforms 81.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 19.93% | ||
| 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 (11.05%) which is in line with its industry peers.
In the last couple of years the Profit Margin of OMF has declined.
OMF has a better Operating Margin (15.10%) than 60.38% of its industry peers.
In the last couple of years the Operating Margin of OMF has declined.
OMF's Gross Margin of 79.32% is fine compared to the rest of the industry. OMF outperforms 73.58% of its industry peers.
OMF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.1% | ||
| PM (TTM) | 11.05% | ||
| GM | 79.32% |
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
The Debt to FCF ratio of OMF is 7.69, which is on the high side as it means it would take OMF, 7.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OMF (7.69) is comparable to the rest of the industry.
OMF has a Debt/Equity ratio of 6.63. This is a high value indicating a heavy dependency on external financing.
OMF has a Debt to Equity ratio of 6.63. This is amonst the worse of the industry: OMF underperforms 81.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.63 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.69%
2.3 Liquidity
A Current Ratio of 2.91 indicates that OMF has no problem at all paying its short term obligations.
The Current ratio of OMF (2.91) is better than 81.13% of its industry peers.
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.
The Quick ratio of OMF (2.91) is better than 81.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
OMF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.95%.
OMF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.16% yearly.
OMF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.39%.
The Revenue has been growing slightly by 3.65% on average over the past years.
EPS 1Y (TTM)2.95%
EPS 3Y-23.16%
EPS 5Y-6.16%
EPS Q2Q%42.16%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y4.79%
Revenue growth 5Y3.65%
Sales Q2Q%10.85%
3.2 Future
The Earnings Per Share is expected to grow by 27.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.51% on average over the next years. This is quite good.
EPS Next Y26.24%
EPS Next 2Y28.56%
EPS Next 3Y27.56%
EPS Next 5YN/A
Revenue Next Year7.86%
Revenue Next 2Y13.36%
Revenue Next 3Y10.51%
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 10.11, which indicates a very decent valuation of OMF.
OMF's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.82, OMF is valued rather cheaply.
OMF is valuated cheaply with a Price/Forward Earnings ratio of 6.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OMF indicates a somewhat cheap valuation: OMF is cheaper than 69.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of OMF to the average of the S&P500 Index (36.21), we can say OMF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 6.99 |
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 79.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.34 | ||
| EV/EBITDA | 23.55 |
4.3 Compensation for Growth
The 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 27.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y28.56%
EPS Next 3Y27.56%
5. Dividend
5.1 Amount
OMF has a Yearly Dividend Yield of 7.20%, which is a nice return.
OMF's Dividend Yield is rather good when compared to the industry average which is at 4.08. OMF pays more dividend than 92.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, OMF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
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 75.72% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OMF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.72%
EPS Next 2Y28.56%
EPS Next 3Y27.56%
56.49
-1.3 (-2.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners92.66%
Inst Owner Change10.37%
Ins Owners0.32%
Ins Owner Change-0.89%
Market Cap6.71B
Analysts80
Price Target64.73 (14.59%)
Short Float %4.17%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
Yearly Dividend4.17
Dividend Growth(5Y)6.78%
DP75.72%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.82%
Min EPS beat(2)8.65%
Max EPS beat(2)17%
EPS beat(4)3
Avg EPS beat(4)8.74%
Min EPS beat(4)-0.04%
Max EPS beat(4)17%
EPS beat(8)7
Avg EPS beat(8)6.44%
EPS beat(12)9
Avg EPS beat(12)2.56%
EPS beat(16)12
Avg EPS beat(16)1.97%
Revenue beat(2)1
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-5.14%
Max Revenue beat(2)0.39%
Revenue beat(4)1
Avg Revenue beat(4)-2.95%
Min Revenue beat(4)-5.14%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)5
Avg Revenue beat(12)8.33%
Revenue beat(16)9
Avg Revenue beat(16)15.93%
PT rev (1m)6.04%
PT rev (3m)4.17%
EPS NQ rev (1m)5.34%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)2.08%
Revenue NQ rev (3m)3.67%
Revenue NY rev (1m)-1.88%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 6.99 | ||
| P/S | 1.12 | ||
| P/FCF | 2.34 | ||
| P/OCF | 2.34 | ||
| P/B | 2.02 | ||
| P/tB | 4.29 | ||
| EV/EBITDA | 23.55 |
EPS(TTM)5.59
EY9.9%
EPS(NY)8.08
Fwd EY14.31%
FCF(TTM)24.13
FCFY42.71%
OCF(TTM)24.13
OCFY42.71%
SpS50.48
BVpS27.98
TBVpS13.18
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 19.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 15.1% | ||
| PM (TTM) | 11.05% | ||
| GM | 79.32% | ||
| FCFM | 47.8% |
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-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.63 | ||
| Debt/FCF | 7.69 | ||
| Debt/EBITDA | 18.55 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 241.21% | ||
| Profit Quality | 432.58% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | N/A |
F-Score6
WACC6.69%
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)2.95%
EPS 3Y-23.16%
EPS 5Y-6.16%
EPS Q2Q%42.16%
EPS Next Y26.24%
EPS Next 2Y28.56%
EPS Next 3Y27.56%
EPS Next 5YN/A
Revenue 1Y (TTM)9.39%
Revenue growth 3Y4.79%
Revenue growth 5Y3.65%
Sales Q2Q%10.85%
Revenue Next Year7.86%
Revenue Next 2Y13.36%
Revenue Next 3Y10.51%
Revenue Next 5YN/A
EBIT growth 1Y16.75%
EBIT growth 3Y-27.23%
EBIT growth 5Y-9.16%
EBIT Next Year-44.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.87%
FCF growth 3Y6.3%
FCF growth 5Y2.7%
OCF growth 1Y16.87%
OCF growth 3Y6.3%
OCF growth 5Y2.7%