ONITY GROUP INC (ONIT) Stock Fundamental Analysis
USA - NYSE:ONIT - US6757466064 - Common Stock
37.56 USD
+1.7 (+4.74%)
37.56 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. 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.
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
With a Return On Assets value of 0.21%, ONIT is not doing good in the industry: 67.68% of the companies in the same industry are doing better.
ONIT has a Return On Equity of 6.47%. This is comparable to the rest of the industry: ONIT outperforms 41.41% of 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 significantly below the industry average of 7.79%.
| 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
Looking at the Profit Margin, with a value of 3.49%, ONIT is in line with its industry, outperforming 41.41% of the companies in the same industry.
In the last couple of years the Profit Margin of ONIT has grown nicely.
The Operating Margin of ONIT (41.69%) is better than 82.83% of its industry peers.
ONIT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 94.99%, ONIT belongs to the top of the industry, outperforming 98.99% 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
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.
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.
ONIT has a Altman-Z score (0.16) which is in line with its industry peers.
ONIT has a Debt/Equity ratio of 28.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ONIT (28.80) is worse than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC1.12
WACC1.95%
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.
With a decent Current ratio value of 1.92, ONIT is doing good in the industry, outperforming 71.72% 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 has a Quick ratio of 1.92. This is in the better half of the industry: ONIT outperforms 74.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
ONIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3183.33%, 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 -3.08% in the last year.
ONIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.41% yearly.
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
Based on estimates for the next years, ONIT will show a very strong growth in Earnings Per Share. The EPS will grow by 41.19% on average per year.
The Revenue is expected to grow by 6.97% on average over the next years.
EPS Next Y113.68%
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
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
Based on the Price/Earnings ratio of 9.53, the valuation of ONIT can be described as reasonable.
ONIT's Price/Earnings ratio is a bit cheaper when compared to the industry. ONIT is cheaper than 72.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. ONIT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.96, which indicates a rather cheap valuation of ONIT.
Based on the Price/Forward Earnings ratio, ONIT is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, ONIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 3.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ONIT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.87 |
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 41.19% in the coming years.
PEG (NY)0.08
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 |
37.56
+1.7 (+4.74%)
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 Cap302.73M
Analysts84.44
Price Target54.4 (44.83%)
Short Float %1.96%
Short Ratio2.59
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)0%
PT rev (3m)8.29%
EPS NQ rev (1m)13.47%
EPS NQ rev (3m)-3.3%
EPS NY rev (1m)3.18%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-3.46%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 3.96 | ||
| P/S | 0.31 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.87 |
EPS(TTM)3.94
EY10.49%
EPS(NY)9.49
Fwd EY25.27%
FCF(TTM)-157.34
FCFYN/A
OCF(TTM)-117.33
OCFYN/A
SpS122.44
BVpS65.98
TBVpS-261
PEG (NY)0.08
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
WACC1.95%
ROIC/WACC1.12
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 Y113.68%
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