ONITY GROUP INC (ONIT) Stock Fundamental Analysis
USA - NYSE:ONIT - US6757466064 - Common Stock
42.15 USD
+0.78 (+1.89%)
42.15 USD
0 (0%)
Overall ONIT gets a fundamental rating of 4 out of 10. We evaluated ONIT against 97 industry peers in the Financial Services industry. There are concerns on the financial health of ONIT while its profitability can be described as average. ONIT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ONIT was profitable.
In the past year ONIT has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: ONIT reported negative net income in multiple years.
In multiple years ONIT reported negative operating cash flow during the last 5 years.
1.2 Ratios
ONIT has a worse Return On Assets (0.21%) than 70.10% of its industry peers.
With a Return On Equity value of 6.47%, ONIT is not doing good in the industry: 63.92% of the companies in the same industry are doing better.
ONIT has a Return On Invested Capital (2.18%) which is in line with its industry peers.
ONIT had an Average Return On Invested Capital over the past 3 years of 2.76%. This is significantly below the industry average of 8.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 6.47% | ||
| ROIC | 2.18% |
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 Profit Margin of 3.49%. This is in the lower half of the industry: ONIT underperforms 63.92% of its industry peers.
ONIT's Profit Margin has improved in the last couple of years.
The Operating Margin of ONIT (41.69%) is better than 82.47% 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 94.99%, ONIT belongs to the top of the industry, outperforming 98.97% of the companies in the same industry.
ONIT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.69% | ||
| PM (TTM) | 3.49% | ||
| GM | 94.99% |
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.
The number of shares outstanding for ONIT has been increased compared to 1 year ago.
The debt/assets ratio for ONIT is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.16, ONIT is in line with its industry, outperforming 41.24% of the companies in the same industry.
ONIT has a Debt/Equity ratio of 28.80. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 28.80, ONIT is doing worse than 90.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC1.1
WACC1.99%
2.3 Liquidity
ONIT has a Current Ratio of 1.92. This is a normal value and indicates that ONIT is financially healthy and should not expect problems in meeting its short term obligations.
ONIT's Current ratio of 1.92 is fine compared to the rest of the industry. ONIT outperforms 76.29% of its industry peers.
ONIT has a Quick Ratio of 1.92. This is a normal value and indicates that ONIT is financially healthy and should not expect problems in meeting its short term obligations.
ONIT's Quick ratio of 1.92 is fine compared to the rest of the industry. ONIT outperforms 77.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 93.02% over the past year.
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%.
ONIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.41% yearly.
EPS 1Y (TTM)93.02%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%-23.4%
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%5.49%
3.2 Future
ONIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.19% yearly.
ONIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
EPS Next Y122.12%
EPS Next 2Y55.47%
EPS Next 3Y41.19%
EPS Next 5YN/A
Revenue Next Year-0.39%
Revenue Next 2Y7.18%
Revenue Next 3Y6.97%
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.
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
The Price/Earnings ratio is 12.70, which indicates a correct valuation of ONIT.
The rest of the industry has a similar Price/Earnings ratio as ONIT.
ONIT is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.24, which indicates a rather cheap valuation of ONIT.
Based on the Price/Forward Earnings ratio, ONIT is valued cheaply inside the industry as 93.81% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ONIT to the average of the S&P500 Index (34.43), we can say ONIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 4.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ONIT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.99 |
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.
ONIT's earnings are expected to grow with 41.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y55.47%
EPS Next 3Y41.19%
5. Dividend
5.1 Amount
ONIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.15
+0.78 (+1.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners54.41%
Inst Owner ChangeN/A
Ins Owners18.54%
Ins Owner Change4.12%
Market Cap339.73M
Revenue(TTM)976.00M
Net Income(TTM)34.40M
Analysts85
Price Target53.55 (27.05%)
Short Float %1.55%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP7.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.96%
Min EPS beat(2)25.38%
Max EPS beat(2)46.55%
EPS beat(4)3
Avg EPS beat(4)-21.65%
Min EPS beat(4)-263.1%
Max EPS beat(4)104.57%
EPS beat(8)4
Avg EPS beat(8)-77.71%
EPS beat(12)6
Avg EPS beat(12)-2751.37%
EPS beat(16)8
Avg EPS beat(16)-2021.67%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-3.82%
Min Revenue beat(4)-12.08%
Max Revenue beat(4)2.19%
Revenue beat(8)2
Avg Revenue beat(8)-5.16%
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)-1.56%
PT rev (3m)1.61%
EPS NQ rev (1m)13.47%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)3.95%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)-3.46%
Revenue NQ rev (3m)-3.63%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 4.24 | ||
| P/S | 0.34 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.99 |
EPS(TTM)3.32
EY7.88%
EPS(NY)9.93
Fwd EY23.57%
FCF(TTM)-157.34
FCFYN/A
OCF(TTM)-117.33
OCFYN/A
SpS122.44
BVpS65.98
TBVpS-261
PEG (NY)0.1
PEG (5Y)N/A
Graham Number70.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 6.47% | ||
| ROCE | 2.52% | ||
| ROIC | 2.18% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 2.8% | ||
| OM | 41.69% | ||
| PM (TTM) | 3.49% | ||
| GM | 94.99% | ||
| 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
ROICexgc growth 3Y-3.72%
ROICexgc 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 | 28.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 36.64 | ||
| Cap/Depr | 4886.36% | ||
| Cap/Sales | 32.68% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 0.16 |
F-Score3
WACC1.99%
ROIC/WACC1.1
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)93.02%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%-23.4%
EPS Next Y122.12%
EPS Next 2Y55.47%
EPS Next 3Y41.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%5.49%
Revenue Next Year-0.39%
Revenue Next 2Y7.18%
Revenue Next 3Y6.97%
Revenue Next 5YN/A
EBIT growth 1Y-6.14%
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
ONITY GROUP INC / ONIT FAQ
What is the ChartMill fundamental rating of ONITY GROUP INC (ONIT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ONIT.
What is the valuation status for ONIT stock?
ChartMill assigns a valuation rating of 6 / 10 to ONITY GROUP INC (ONIT). This can be considered as Fairly Valued.
What is the profitability of ONIT stock?
ONITY GROUP INC (ONIT) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ONIT stock?
The Price/Earnings (PE) ratio for ONITY GROUP INC (ONIT) is 12.7 and the Price/Book (PB) ratio is 0.64.
Is the dividend of ONITY GROUP INC sustainable?
The dividend rating of ONITY GROUP INC (ONIT) is 0 / 10 and the dividend payout ratio is 7.56%.