ONITY GROUP INC (ONIT) Stock Fundamental Analysis
NYSE:ONIT - New York Stock Exchange, Inc. - US6757466064 - Common Stock - Currency: USD
ONIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
Looking at the Return On Assets, with a value of 0.15%, ONIT is doing worse than 71.29% of the companies in the same industry.
The Return On Equity of ONIT (4.71%) is worse than 66.34% of its industry peers.
ONIT has a Return On Invested Capital (2.22%) which is in line with its industry peers.
ONIT had an Average Return On Invested Capital over the past 3 years of 2.75%. This is significantly below the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 4.71% | ||
| ROIC | 2.22% |
ROA(3y)-0.03%
ROA(5y)N/A
ROE(3y)-1.2%
ROE(5y)N/A
ROIC(3y)2.75%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.43%, ONIT is doing worse than 68.32% of the companies in the same industry.
ONIT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 41.72%, ONIT belongs to the best of the industry, outperforming 80.20% of the companies in the same industry.
In the last couple of years the Operating Margin of ONIT has grown nicely.
ONIT has a better Gross Margin (94.90%) than 99.01% of its industry peers.
ONIT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.72% | ||
| PM (TTM) | 2.43% | ||
| GM | 94.9% |
OM growth 3Y12.94%
OM growth 5YN/A
PM growth 3Y25.23%
PM growth 5YN/A
GM growth 3Y6.34%
GM growth 5YN/A
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.
ONIT has more shares outstanding than it did 1 year ago.
The debt/assets ratio for ONIT is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.16, ONIT is in line with its industry, outperforming 42.57% of the companies in the same industry.
ONIT has a Debt/Equity ratio of 29.42. This is a high value indicating a heavy dependency on external financing.
ONIT has a worse Debt to Equity ratio (29.42) than 91.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 29.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC1.14
WACC1.95%
2.3 Liquidity
A Current Ratio of 2.06 indicates that ONIT has no problem at all paying its short term obligations.
The Current ratio of ONIT (2.06) is better than 77.23% of its industry peers.
ONIT has a Quick Ratio of 2.06. This indicates that ONIT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.06, ONIT is in the better half of the industry, outperforming 78.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
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.
ONIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.88% yearly.
The Revenue has decreased by -8.50% in the past year.
The Revenue has been decreasing by -2.41% on average over the past years.
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
ONIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.00% yearly.
The Revenue is expected to grow by 7.11% on average over the next years.
EPS Next Y114.11%
EPS Next 2Y60.52%
EPS Next 3Y47%
EPS Next 5YN/A
Revenue Next Year2.94%
Revenue Next 2Y5.85%
Revenue Next 3Y7.11%
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
A Price/Earnings ratio of 13.14 indicates a correct valuation of ONIT.
ONIT's Price/Earnings ratio is a bit cheaper when compared to the industry. ONIT is cheaper than 61.39% of the companies in the same industry.
When comparing the Price/Earnings ratio of ONIT to the average of the S&P500 Index (27.25), we can say ONIT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.56, the valuation of ONIT can be described as very cheap.
ONIT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ONIT is cheaper than 97.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.80. ONIT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 3.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ONIT indicates a slightly more expensive valuation: ONIT is more expensive than 60.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.08 |
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.
ONIT's earnings are expected to grow with 47.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y60.52%
EPS Next 3Y47%
5. Dividend
5.1 Amount
No dividends for ONIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.72
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners55.01%
Inst Owner ChangeN/A
Ins Owners18.42%
Ins Owner Change26.19%
Market Cap302.14M
Analysts86
Price Target50.24 (33.19%)
Short Float %1.46%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP6.25%
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)2.6%
PT rev (3m)12.57%
EPS NQ rev (1m)-5.7%
EPS NQ rev (3m)-5.33%
EPS NY rev (1m)-3.66%
EPS NY rev (3m)6.02%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 3.56 | ||
| P/S | 0.31 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.08 |
EPS(TTM)2.87
EY7.61%
EPS(NY)10.59
Fwd EY28.08%
FCF(TTM)-91.01
FCFYN/A
OCF(TTM)-53.06
OCFYN/A
SpS123.18
BVpS63.67
TBVpS-254.81
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 4.71% | ||
| ROCE | 2.57% | ||
| ROIC | 2.22% | ||
| ROICexc | 2.24% | ||
| ROICexgc | 2.85% | ||
| OM | 41.72% | ||
| PM (TTM) | 2.43% | ||
| GM | 94.9% | ||
| FCFM | N/A |
ROA(3y)-0.03%
ROA(5y)N/A
ROE(3y)-1.2%
ROE(5y)N/A
ROIC(3y)2.75%
ROIC(5y)N/A
ROICexc(3y)2.79%
ROICexc(5y)N/A
ROICexgc(3y)3.77%
ROICexgc(5y)N/A
ROCE(3y)3.18%
ROCE(5y)N/A
ROICexcg growth 3Y-3.74%
ROICexcg growth 5YN/A
ROICexc growth 3Y-0.8%
ROICexc growth 5YN/A
OM growth 3Y12.94%
OM growth 5YN/A
PM growth 3Y25.23%
PM growth 5YN/A
GM growth 3Y6.34%
GM growth 5YN/A
F-Score3
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 29.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 35.79 | ||
| Cap/Depr | 4053.33% | ||
| Cap/Sales | 30.81% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 0.16 |
F-Score3
WACC1.95%
ROIC/WACC1.14
Cap/Depr(3y)1733.32%
Cap/Depr(5y)N/A
Cap/Sales(3y)18.93%
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 Y114.11%
EPS Next 2Y60.52%
EPS Next 3Y47%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.5%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%4.48%
Revenue Next Year2.94%
Revenue Next 2Y5.85%
Revenue Next 3Y7.11%
Revenue Next 5YN/A
EBIT growth 1Y4.8%
EBIT growth 3Y10.22%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-620.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5840%
OCF growth 3YN/A
OCF growth 5YN/A