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 only an average score on both its financial health and profitability. OMF scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
OMF has a Return On Assets (1.96%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 15.95%, OMF is doing good in 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 of 8.90%. This is comparable to the rest of the industry: OMF outperforms 48.08% of its industry peers.
OMF's Profit Margin has declined in the last couple of years.
OMF's Operating Margin of 12.22% is in line compared to the rest of the industry. OMF outperforms 57.69% of its industry peers.
In the last couple of years the Operating Margin of OMF has declined.
The Gross Margin of OMF (79.27%) is better than 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.
The number of shares outstanding for OMF has been reduced compared to 1 year ago.
Compared to 5 years ago, OMF has less shares outstanding
Compared to 1 year ago, OMF has a worse debt to assets ratio.
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.
With a Debt to FCF ratio value of 7.94, OMF perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
A Debt/Equity ratio of 6.72 is on the high side and indicates that OMF has dependencies on debt financing.
With a Debt to Equity ratio value of 6.72, 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 | 6.72 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.83%
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 76.92% 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.
OMF's Quick ratio of 2.91 is fine compared to the rest of the industry. OMF outperforms 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
The earnings per share for OMF have decreased by -4.80% in the last year.
The Earnings Per Share has been decreasing by -6.16% on average over the past years.
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 26.52% yearly.
Based on estimates for the next years, OMF will show a quite strong growth in Revenue. The Revenue will grow by 9.94% on average per year.
EPS Next Y25.15%
EPS Next 2Y29.21%
EPS Next 3Y26.52%
EPS Next 5YN/A
Revenue Next Year10.94%
Revenue Next 2Y9.85%
Revenue Next 3Y9.94%
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 9.56, which indicates a very decent valuation of OMF.
The rest of the industry has a similar Price/Earnings ratio as OMF.
OMF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
A Price/Forward Earnings ratio of 6.04 indicates a rather cheap valuation of OMF.
OMF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OMF is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, OMF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 6.04 |
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 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.18 | ||
| EV/EBITDA | 27.3 |
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.
OMF's earnings are expected to grow with 26.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y29.21%
EPS Next 3Y26.52%
5. Dividend
5.1 Amount
OMF has a Yearly Dividend Yield of 8.74%, which is a nice return.
Compared to an average industry Dividend Yield of 4.44, OMF pays a better dividend. On top of this OMF pays more dividend than 96.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, OMF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.74% |
5.2 History
The dividend of OMF is nicely growing with an annual growth rate of 6.78%!
OMF has been paying a dividend for over 5 years, so it has already some track record.
The dividend of OMF decreased in the last 3 years.
Dividend Growth(5Y)6.78%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
OMF pays out 97.84% of its income as dividend. 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 2Y29.21%
EPS Next 3Y26.52%
49.35
+1.76 (+3.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners93.66%
Inst Owner Change0.05%
Ins Owners0.45%
Ins Owner Change0.25%
Market Cap5.88B
Analysts80
Price Target62.14 (25.92%)
Short Float %4.89%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.74% |
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)-2.13%
PT rev (3m)3.26%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)-10.57%
EPS NY rev (1m)-1.54%
EPS NY rev (3m)-12.47%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)2.9%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 6.04 | ||
| P/S | 1.03 | ||
| P/FCF | 2.18 | ||
| P/OCF | 2.18 | ||
| P/B | 1.84 | ||
| P/tB | 4.11 | ||
| EV/EBITDA | 27.3 |
EPS(TTM)5.16
EY10.46%
EPS(NY)8.16
Fwd EY16.54%
FCF(TTM)22.67
FCFY45.93%
OCF(TTM)22.67
OCFY45.93%
SpS48.04
BVpS26.8
TBVpS12.02
PEG (NY)0.38
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
WACC6.83%
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 Y25.15%
EPS Next 2Y29.21%
EPS Next 3Y26.52%
EPS Next 5YN/A
Revenue 1Y (TTM)7.98%
Revenue growth 3Y4.79%
Revenue growth 5Y3.65%
Sales Q2Q%11.16%
Revenue Next Year10.94%
Revenue Next 2Y9.85%
Revenue Next 3Y9.94%
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%