Onity Group Inc.
Onity Group Inc. Fundamental Analysis
Onity Group Inc. (ONIT) shows moderate financial fundamentals with a PE ratio of 1.68, profit margin of 16.05%, and ROE of 33.38%. The company generates $1.2B in annual revenue with weak year-over-year growth of -6.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -103.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ONIT's fundamental strength across five key dimensions:
Efficiency Score
WeakONIT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentONIT trades at attractive valuation levels.
Growth Score
WeakONIT faces weak or negative growth trends.
Financial Health Score
ModerateONIT shows balanced financial health with some risks.
Profitability Score
ModerateONIT maintains healthy but balanced margins.
Key Financial Metrics
Is ONIT Expensive or Cheap?
P/E Ratio
ONIT trades at 1.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ONIT's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Onity Group Inc. at 0.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -51.22 times EBITDA. This is generally considered low.
How Well Does ONIT Make Money?
Net Profit Margin
For every $100 in sales, Onity Group Inc. keeps $16.05 as profit after all expenses.
Operating Margin
Core operations generate 23.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.38 in profit for every $100 of shareholder equity.
ROA
Onity Group Inc. generates $1.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Onity Group Inc. generates limited operating cash flow of $-790.80M, signaling weaker underlying cash strength.
Free Cash Flow
Onity Group Inc. generates weak or negative free cash flow of $-790.80M, restricting financial flexibility.
FCF Per Share
Each share generates $-92.80 in free cash annually.
FCF Yield
ONIT converts -2.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
21.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ONIT Stacks Against Its Sector Peers
| Metric | ONIT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.68 | 18.91 | Better (Cheaper) |
| ROE | 33.38% | 788.00% | Weak |
| Net Margin | 16.05% | 2164.00% | Weak |
| Debt/Equity | 21.68 | 0.82 | Weak (High Leverage) |
| Current Ratio | 11.46 | 616.06 | Strong Liquidity |
| ROA | 1.17% | -23806.00% (disorted) | Weak |
ONIT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Onity Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.50%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
127.35%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-532.98%
Industry Style: Value, Dividend, Cyclical
Declining