ONITY GROUP INC (ONIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ONIT - US6757466064 - Common Stock
44.19 USD
+0.42 (+0.96%)
44.19 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ONIT. ONIT was compared to 99 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 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.
The reported net income has been mixed in the past 5 years: ONIT reported negative net income in multiple 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
ONIT has a Return On Assets of 0.19%. This is in the lower half of the industry: ONIT underperforms 68.69% of its industry peers.
ONIT has a Return On Equity of 5.57%. This is in the lower half of the industry: ONIT underperforms 60.61% of its industry peers.
ONIT has a Return On Invested Capital (2.18%) 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 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.19% | ||
| ROE | 5.57% | ||
| 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
With a Profit Margin value of 3.07%, ONIT is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
ONIT's Profit Margin has improved in the last couple of years.
ONIT's Operating Margin of 39.85% is fine compared to the rest of the industry. ONIT outperforms 79.80% of its industry peers.
ONIT's Operating Margin has improved in the last couple of years.
ONIT has a better Gross Margin (94.62%) than 98.99% of its industry peers.
In the last couple of years the Gross Margin of ONIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.85% | ||
| PM (TTM) | 3.07% | ||
| GM | 94.62% |
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.
ONIT has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, ONIT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.16, we must say that ONIT is in the distress zone and has some risk of bankruptcy.
ONIT has a Altman-Z score (0.16) which is comparable to the rest of the industry.
ONIT has a Debt/Equity ratio of 26.92. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 26.92, ONIT is doing worse than 89.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC1.09
WACC2%
2.3 Liquidity
ONIT has a Current Ratio of 1.41. This is a normal value and indicates that ONIT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.41, ONIT is doing good in the industry, outperforming 65.66% of the companies in the same industry.
ONIT has a Quick Ratio of 1.41. 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 1.41 is fine compared to the rest of the industry. ONIT outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
ONIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.02%, which is quite impressive.
ONIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.88% yearly.
Looking at the last year, ONIT shows a decrease in Revenue. The Revenue has decreased by -2.63% in the last year.
The Revenue has been decreasing by -2.41% on average over the past years.
EPS 1Y (TTM)93.02%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%-23.4%
Revenue 1Y (TTM)-2.63%
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 42.83% yearly.
The Revenue is expected to grow by 7.40% on average over the next years.
EPS Next Y136.88%
EPS Next 2Y62.65%
EPS Next 3Y42.83%
EPS Next 5YN/A
Revenue Next Year3.13%
Revenue Next 2Y8.13%
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.
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 correctly with a Price/Earnings ratio of 13.31.
ONIT's Price/Earnings is on the same level as the industry average.
ONIT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.06, which indicates a rather cheap valuation of ONIT.
Based on the Price/Forward Earnings ratio, ONIT is valued cheaply inside the industry as 94.95% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.04. ONIT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 4.06 |
4.2 Price Multiples
ONIT's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 37.09 |
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 42.83% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y62.65%
EPS Next 3Y42.83%
5. Dividend
5.1 Amount
ONIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
44.19
+0.42 (+0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners56.47%
Inst Owner ChangeN/A
Ins Owners18.08%
Ins Owner Change0.7%
Market Cap356.17M
Revenue(TTM)1.00B
Net Income(TTM)30.70M
Analysts85
Price Target56.1 (26.95%)
Short Float %1.71%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP11.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.95%
Min EPS beat(2)0.51%
Max EPS beat(2)25.38%
EPS beat(4)3
Avg EPS beat(4)-47.66%
Min EPS beat(4)-263.1%
Max EPS beat(4)46.55%
EPS beat(8)5
Avg EPS beat(8)-77.06%
EPS beat(12)6
Avg EPS beat(12)-2824.76%
EPS beat(16)8
Avg EPS beat(16)-2028.69%
Revenue beat(2)1
Avg Revenue beat(2)3.09%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)10.59%
Revenue beat(4)1
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-12.08%
Max Revenue beat(4)10.59%
Revenue beat(8)3
Avg Revenue beat(8)-3.02%
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)4.76%
PT rev (3m)3.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.57%
EPS NY rev (1m)6.65%
EPS NY rev (3m)14.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)3.54%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 4.06 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.09 |
EPS(TTM)3.32
EY7.51%
EPS(NY)10.87
Fwd EY24.61%
FCF(TTM)-135.72
FCFYN/A
OCF(TTM)-91.24
OCFYN/A
SpS124.26
BVpS68.4
TBVpS-274.73
PEG (NY)0.1
PEG (5Y)N/A
Graham Number71.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.19% | ||
| ROE | 5.57% | ||
| ROCE | 2.52% | ||
| ROIC | 2.18% | ||
| ROICexc | 2.2% | ||
| ROICexgc | 2.83% | ||
| OM | 39.85% | ||
| PM (TTM) | 3.07% | ||
| GM | 94.62% | ||
| 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-Score2
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.92 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 36.65 | ||
| Cap/Depr | 6076.27% | ||
| Cap/Sales | 35.8% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 0.16 |
F-Score2
WACC2%
ROIC/WACC1.09
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 Y136.88%
EPS Next 2Y62.65%
EPS Next 3Y42.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%5.49%
Revenue Next Year3.13%
Revenue Next 2Y8.13%
Revenue Next 3Y7.4%
Revenue Next 5YN/A
EBIT growth 1Y-7.42%
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 13.31 and the Price/Book (PB) ratio is 0.65.
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 11.73%.