ONITY GROUP INC (ONIT) Stock Fundamental Analysis
USA - NYSE:ONIT - US6757466064 - Common Stock
42.91 USD
-1.08 (-2.46%)
43.39 USD
+0.48 (+1.12%)
ONIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 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.
ONIT had a negative operating cash flow in the past year.
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
ONIT has a worse Return On Assets (0.21%) than 69.31% of its industry peers.
ONIT has a Return On Equity (6.47%) which is in line with its industry peers.
ONIT has a Return On Invested Capital (2.18%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ONIT is below the industry average of 7.65%.
| 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's Profit Margin of 3.49% is in line compared to the rest of the industry. ONIT outperforms 40.59% of its industry peers.
ONIT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 41.69%, ONIT belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
ONIT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 94.99%, ONIT belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
In the last couple of years the Gross Margin of ONIT has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ONIT 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.
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 42.57% of the companies in the same industry.
A Debt/Equity ratio of 28.80 is on the high side and indicates that ONIT has dependencies on debt financing.
ONIT has a Debt to Equity ratio of 28.80. This is amonst the worse of the industry: ONIT underperforms 91.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC1.1
WACC1.99%
2.3 Liquidity
A Current Ratio of 1.92 indicates that ONIT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.92, ONIT is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
A Quick Ratio of 1.92 indicates that ONIT should not have too much problems paying its short term obligations.
ONIT's Quick ratio of 1.92 is fine compared to the rest of the industry. ONIT outperforms 77.23% 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 3183.33% over the past year.
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 -3.08% in the past year.
The Revenue has been decreasing by -2.41% on average over the past years.
EPS 1Y (TTM)3183.33%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%80.45%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%0.08%
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 Y107.1%
EPS Next 2Y51.96%
EPS Next 3Y41.19%
EPS Next 5YN/A
Revenue Next Year1.57%
Revenue Next 2Y7.36%
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
With a Price/Earnings ratio of 10.89, the valuation of ONIT can be described as very reasonable.
66.34% of the companies in the same industry are more expensive than ONIT, based on the Price/Earnings ratio.
ONIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 4.52, the valuation of ONIT can be described as very cheap.
Based on the Price/Forward Earnings ratio, ONIT is valued cheaper than 93.07% of the companies in the same industry.
ONIT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 4.52 |
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 | 37 |
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 2Y51.96%
EPS Next 3Y41.19%
5. Dividend
5.1 Amount
No dividends for ONIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.91
-1.08 (-2.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners54.9%
Inst Owner ChangeN/A
Ins Owners18.64%
Ins Owner Change26.19%
Market Cap345.85M
Analysts84.44
Price Target54.4 (26.78%)
Short Float %1.72%
Short Ratio2.31
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)3.23%
PT rev (3m)11.11%
EPS NQ rev (1m)-10.51%
EPS NQ rev (3m)-19.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.81%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 4.52 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37 |
EPS(TTM)3.94
EY9.18%
EPS(NY)9.49
Fwd EY22.12%
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
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
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 | 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)3183.33%
EPS 3Y28.88%
EPS 5YN/A
EPS Q2Q%80.45%
EPS Next Y107.1%
EPS Next 2Y51.96%
EPS Next 3Y41.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y-2.41%
Revenue growth 5YN/A
Sales Q2Q%0.08%
Revenue Next Year1.57%
Revenue Next 2Y7.36%
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