OneMain Holdings, Inc.
OneMain Holdings, Inc. Fundamental Analysis
OneMain Holdings, Inc. (OMF) shows strong financial fundamentals with a PE ratio of 8.17, profit margin of 12.54%, and ROE of 23.40%. The company generates $6.2B in annual revenue with moderate year-over-year growth of 7.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OMF's fundamental strength across five key dimensions:
Efficiency Score
WeakOMF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOMF trades at attractive valuation levels.
Growth Score
ModerateOMF shows steady but slowing expansion.
Financial Health Score
WeakOMF carries high financial risk with limited liquidity.
Profitability Score
ModerateOMF maintains healthy but balanced margins.
Key Financial Metrics
Is OMF Expensive or Cheap?
P/E Ratio
OMF trades at 8.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OMF's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values OneMain Holdings, Inc. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -11.96 times EBITDA. This is generally considered low.
How Well Does OMF Make Money?
Net Profit Margin
For every $100 in sales, OneMain Holdings, Inc. keeps $12.54 as profit after all expenses.
Operating Margin
Core operations generate 16.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.40 in profit for every $100 of shareholder equity.
ROA
OneMain Holdings, Inc. generates $2.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
OneMain Holdings, Inc. generates strong operating cash flow of $3.12B, reflecting robust business health.
Free Cash Flow
OneMain Holdings, Inc. generates strong free cash flow of $3.12B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $26.48 in free cash annually.
FCF Yield
OMF converts 49.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How OMF Stacks Against Its Sector Peers
| Metric | OMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.17 | 18.73 | Better (Cheaper) |
| ROE | 23.40% | 847.00% | Weak |
| Net Margin | 12.54% | 2562.00% | Weak |
| Debt/Equity | 6.67 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 2.86% | -21692.00% (disorted) | Weak |
OMF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews OneMain Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.01%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-32.30%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
29.94%
Industry Style: Value, Dividend, Cyclical
High Growth