ONITY GROUP INC (ONIT) Stock Fundamental Analysis
NYSE:ONIT - New York Stock Exchange, Inc. - US6757466064 - Common Stock - Currency: USD
Overall ONIT gets a fundamental rating of 4 out of 10. We evaluated ONIT against 101 industry peers in the Financial Services industry. ONIT has a medium profitability rating, but doesn't score so well on its financial health evaluation. ONIT has a decent growth rate and is not valued too expensively.
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.
1.2 Ratios
The Return On Assets of ONIT (0.20%) is worse than 74.26% of its industry peers.
ONIT's Return On Equity of 6.78% is on the low side compared to the rest of the industry. ONIT is outperformed by 60.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.37%, ONIT is in line with its industry, outperforming 44.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ONIT is significantly below the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 6.78% | ||
| ROIC | 2.37% |
ROA(3y)-0.03%
ROA(5y)N/A
ROE(3y)-1.15%
ROE(5y)N/A
ROIC(3y)2.76%
ROIC(5y)N/A
1.3 Margins
ONIT has a worse Profit Margin (3.42%) than 67.33% of its industry peers.
In the last couple of years the Profit Margin of ONIT has grown nicely.
Looking at the Operating Margin, with a value of 45.43%, ONIT belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
ONIT's Operating Margin has improved in the last couple of years.
ONIT has a better Gross Margin (94.64%) than 99.01% of its industry peers.
In the last couple of years the Gross Margin of ONIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.43% | ||
| PM (TTM) | 3.42% | ||
| GM | 94.64% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ONIT is still creating some value.
Compared to 1 year ago, ONIT has more shares outstanding
Compared to 1 year ago, ONIT has a worse debt to assets ratio.
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.
With a Altman-Z score value of 0.16, ONIT perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
A Debt/Equity ratio of 30.65 is on the high side and indicates that ONIT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 30.65, ONIT is doing worse than 92.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 30.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC1.22
WACC1.94%
2.3 Liquidity
A Current Ratio of 1.59 indicates that ONIT should not have too much problems paying its short term obligations.
ONIT has a better Current ratio (1.59) than 71.29% of its industry peers.
A Quick Ratio of 1.59 indicates that ONIT should not have too much problems paying its short term obligations.
The Quick ratio of ONIT (1.59) is better than 73.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 333.78% 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
The Revenue has decreased by -8.50% in the past year.
ONIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.41% yearly.
EPS 1Y (TTM)333.78%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%-24.06%
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%4.48%
3.2 Future
Based on estimates for the next years, ONIT will show a very strong growth in Earnings Per Share. The EPS will grow by 47.04% on average per year.
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y101.95%
EPS Next 2Y58.45%
EPS Next 3Y47.04%
EPS Next 5YN/A
Revenue Next Year3.13%
Revenue Next 2Y9.12%
Revenue Next 3Y7.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
ONIT is valuated reasonably with a Price/Earnings ratio of 11.52.
Compared to the rest of the industry, the Price/Earnings ratio of ONIT indicates a somewhat cheap valuation: ONIT is cheaper than 61.39% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. ONIT is valued rather cheaply when compared to this.
ONIT is valuated cheaply with a Price/Forward Earnings ratio of 3.58.
Based on the Price/Forward Earnings ratio, ONIT is valued cheaper than 99.01% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, ONIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 3.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ONIT is valued a bit more expensive than the industry average as 62.38% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 33.69 |
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 47.04% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y58.45%
EPS Next 3Y47.04%
5. Dividend
5.1 Amount
ONIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.99
-0.13 (-0.35%)
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 Change23.56%
Market Cap291.11M
Analysts86
Price Target44.63 (20.65%)
Short Float %2.15%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP1.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-79.26%
Min EPS beat(2)-263.1%
Max EPS beat(2)104.57%
EPS beat(4)2
Avg EPS beat(4)11.47%
Min EPS beat(4)-263.1%
Max EPS beat(4)208.77%
EPS beat(8)3
Avg EPS beat(8)-3984.28%
EPS beat(12)5
Avg EPS beat(12)-2701.23%
EPS beat(16)7
Avg EPS beat(16)-2293.03%
Revenue beat(2)1
Avg Revenue beat(2)-4.94%
Min Revenue beat(2)-12.08%
Max Revenue beat(2)2.19%
Revenue beat(4)1
Avg Revenue beat(4)-8.3%
Min Revenue beat(4)-13.3%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)18.2%
EPS NQ rev (3m)-21.11%
EPS NY rev (1m)0.84%
EPS NY rev (3m)-18.6%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 3.58 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.69 |
EPS(TTM)3.21
EY8.68%
EPS(NY)10.32
Fwd EY27.9%
FCF(TTM)-102.54
FCFYN/A
OCF(TTM)-72.91
OCFYN/A
SpS124.02
BVpS62.63
TBVpS-251.17
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 6.78% | ||
| ROCE | 2.74% | ||
| ROIC | 2.37% | ||
| ROICexc | 2.4% | ||
| ROICexgc | 3.04% | ||
| OM | 45.43% | ||
| PM (TTM) | 3.42% | ||
| GM | 94.64% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 30.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 33.45 | ||
| Cap/Depr | 2809.64% | ||
| Cap/Sales | 23.89% | ||
| Interest Coverage | 1.77 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 0.16 |
F-Score3
WACC1.94%
ROIC/WACC1.22
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)333.78%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%-24.06%
EPS Next Y101.95%
EPS Next 2Y58.45%
EPS Next 3Y47.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%4.48%
Revenue Next Year3.13%
Revenue Next 2Y9.12%
Revenue Next 3Y7.57%
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