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ONITY GROUP INC (ONIT) Stock Fundamental Analysis

NYSE:ONIT - New York Stock Exchange, Inc. - US6757466064 - Common Stock - Currency: USD

38.06  -0.38 (-0.99%)

After market: 38.06 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ONIT. ONIT was compared to 100 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

ONIT had positive earnings in the past year.
In the past year ONIT has reported a negative cash flow from operations.
In multiple years ONIT reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: ONIT reported negative operating cash flow in multiple years.
ONIT Yearly Net Income VS EBIT VS OCF VS FCFONIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 2024 0 -500M -1B

1.2 Ratios

With a Return On Assets value of 0.15%, ONIT is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 4.78%, ONIT is doing worse than 65.00% of the companies in the same industry.
ONIT has a Return On Invested Capital (2.22%) which is comparable to the rest of the industry.
ONIT had an Average Return On Invested Capital over the past 3 years of 2.76%. This is significantly below the industry average of 11.97%.
Industry RankSector Rank
ROA 0.15%
ROE 4.78%
ROIC 2.22%
ROA(3y)-0.03%
ROA(5y)N/A
ROE(3y)-1.15%
ROE(5y)N/A
ROIC(3y)2.76%
ROIC(5y)N/A
ONIT Yearly ROA, ROE, ROICONIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2024 0 5 -5 -10 -15

1.3 Margins

ONIT's Profit Margin of 2.47% is on the low side compared to the rest of the industry. ONIT is outperformed by 67.00% of its industry peers.
ONIT's Profit Margin has improved in the last couple of years.
ONIT has a better Operating Margin (41.69%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of ONIT has grown nicely.
Looking at the Gross Margin, with a value of 94.90%, ONIT belongs to the top of the industry, outperforming 99.00% of the companies in the same industry.
ONIT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 41.69%
PM (TTM) 2.47%
GM 94.9%
OM growth 3Y12.97%
OM growth 5YN/A
PM growth 3Y25.74%
PM growth 5YN/A
GM growth 3Y6.34%
GM growth 5YN/A
ONIT Yearly Profit, Operating, Gross MarginsONIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 2024 0 20 40 60 80

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3

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.
The number of shares outstanding for ONIT has been increased compared to 1 year ago.
Compared to 1 year ago, ONIT has a worse debt to assets ratio.
ONIT Yearly Shares OutstandingONIT Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 2024 2M 4M 6M 8M
ONIT Yearly Total Debt VS Total AssetsONIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

ONIT has an Altman-Z score of 0.16. This is a bad value and indicates that ONIT is not financially healthy and even has some risk of bankruptcy.
ONIT has a Altman-Z score of 0.16. This is comparable to the rest of the industry: ONIT outperforms 41.00% of its industry peers.
ONIT has a Debt/Equity ratio of 29.41. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 29.41, ONIT is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 29.41
Debt/FCF N/A
Altman-Z 0.16
ROIC/WACC1.13
WACC1.96%
ONIT Yearly LT Debt VS Equity VS FCFONIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 2.07 indicates that ONIT has no problem at all paying its short term obligations.
ONIT has a better Current ratio (2.07) than 76.00% of its industry peers.
ONIT has a Quick Ratio of 2.07. This indicates that ONIT is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.07, ONIT is doing good in the industry, outperforming 77.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.07
Quick Ratio 2.07
ONIT Yearly Current Assets VS Current LiabilitesONIT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

ONIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 287.84%, which is quite impressive.
Measured over the past years, ONIT shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.88% on average per year.
ONIT shows a decrease in Revenue. In the last year, the revenue decreased by -8.50%.
Measured over the past years, ONIT shows a decrease in Revenue. The Revenue has been decreasing by -2.41% on average per year.
EPS 1Y (TTM)287.84%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%-33.16%
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%4.48%

3.2 Future

The Earnings Per Share is expected to grow by 46.39% on average over the next years. This is a very strong growth
Based on estimates for the next years, ONIT will show a small growth in Revenue. The Revenue will grow by 7.40% on average per year.
EPS Next Y122.24%
EPS Next 2Y58.65%
EPS Next 3Y46.39%
EPS Next 5YN/A
Revenue Next Year2.84%
Revenue Next 2Y5.99%
Revenue Next 3Y7.4%
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.
ONIT Yearly Revenue VS EstimatesONIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
ONIT Yearly EPS VS EstimatesONIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 10 -10 -20

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.26, ONIT is valued correctly.
ONIT's Price/Earnings ratio is in line with the industry average.
ONIT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.17.
With a Price/Forward Earnings ratio of 3.68, the valuation of ONIT can be described as very cheap.
Based on the Price/Forward Earnings ratio, ONIT is valued cheaper than 97.00% of the companies in the same industry.
ONIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.26
Fwd PE 3.68
ONIT Price Earnings VS Forward Price EarningsONIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

62.00% of the companies in the same industry are cheaper than ONIT, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 36.12
ONIT Per share dataONIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100 -200

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.
A more expensive valuation may be justified as ONIT's earnings are expected to grow with 46.39% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y58.65%
EPS Next 3Y46.39%

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0

5. Dividend

5.1 Amount

No dividends for ONIT!.
Industry RankSector Rank
Dividend Yield N/A

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ONITY GROUP INC

NYSE:ONIT (5/28/2025, 8:04:01 PM)

After market: 38.06 0 (0%)

38.06

-0.38 (-0.99%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners53.74%
Inst Owner ChangeN/A
Ins Owners17.41%
Ins Owner Change23.56%
Market Cap304.86M
Analysts86
Price Target47.69 (25.3%)
Short Float %2.09%
Short Ratio2.76
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP6.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-108.28%
Min EPS beat(2)-263.1%
Max EPS beat(2)46.55%
EPS beat(4)2
Avg EPS beat(4)-29.08%
Min EPS beat(4)-263.1%
Max EPS beat(4)104.57%
EPS beat(8)4
Avg EPS beat(8)-40.27%
EPS beat(12)5
Avg EPS beat(12)-2754.66%
EPS beat(16)7
Avg EPS beat(16)-2310.61%
Revenue beat(2)0
Avg Revenue beat(2)-6.53%
Min Revenue beat(2)-12.08%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-5.23%
Min Revenue beat(4)-12.08%
Max Revenue beat(4)2.19%
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)6.86%
PT rev (3m)6.86%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-21.89%
EPS NY rev (1m)10.05%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 13.26
Fwd PE 3.68
P/S 0.31
P/FCF N/A
P/OCF N/A
P/B 0.6
P/tB N/A
EV/EBITDA 36.12
EPS(TTM)2.87
EY7.54%
EPS(NY)10.35
Fwd EY27.18%
FCF(TTM)-91.12
FCFYN/A
OCF(TTM)-53.03
OCFYN/A
SpS123.18
BVpS63.68
TBVpS-254.73
PEG (NY)0.11
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.15%
ROE 4.78%
ROCE 2.56%
ROIC 2.22%
ROICexc 2.24%
ROICexgc 2.85%
OM 41.69%
PM (TTM) 2.47%
GM 94.9%
FCFM N/A
ROA(3y)-0.03%
ROA(5y)N/A
ROE(3y)-1.15%
ROE(5y)N/A
ROIC(3y)2.76%
ROIC(5y)N/A
ROICexc(3y)2.8%
ROICexc(5y)N/A
ROICexgc(3y)3.78%
ROICexgc(5y)N/A
ROCE(3y)3.18%
ROCE(5y)N/A
ROICexcg growth 3Y-3.72%
ROICexcg growth 5YN/A
ROICexc growth 3Y-0.77%
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-Score3
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 29.41
Debt/FCF N/A
Debt/EBITDA 35.81
Cap/Depr 4068%
Cap/Sales 30.92%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.07
Quick Ratio 2.07
Altman-Z 0.16
F-Score3
WACC1.96%
ROIC/WACC1.13
Cap/Depr(3y)1734.67%
Cap/Depr(5y)N/A
Cap/Sales(3y)18.94%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)287.84%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%-33.16%
EPS Next Y122.24%
EPS Next 2Y58.65%
EPS Next 3Y46.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%4.48%
Revenue Next Year2.84%
Revenue Next 2Y5.99%
Revenue Next 3Y7.4%
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 1Y-621.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5617.31%
OCF growth 3YN/A
OCF growth 5YN/A