OneMain Holdings (OMF)
NYSE:OMF
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OneMain Holdings
(NYSE:OMF)
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Rating:68Neutral
Price Target:
$59.00
▲(7.33% Upside)
Action:DowngradedDate:02/07/26
Score is anchored by solid fundamentals and a constructive earnings-call outlook (growth, capital generation, and shareholder returns), supported by attractive valuation (low P/E and high yield). Offsetting factors are meaningful balance-sheet leverage risk and weak technical momentum (below key moving averages with negative MACD).
Positive Factors
Cash generation / Free cash flow
Sustained and improving operating and free cash flow provides durable internal funding for loan growth, debt service, and shareholder returns. Strong cash conversion (FCF ~net income) supports resilience through credit cycles and funds capital programs without sole reliance on capital markets.
Negative Factors
High financial leverage
Persistently high leverage materially increases sensitivity to funding cost rises or credit stress, constraining strategic flexibility. Even with solid cash flow, elevated debt ratios heighten refinancing and covenant risk, making capital structure a lasting vulnerability if macro or credit conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / Free cash flow
Sustained and improving operating and free cash flow provides durable internal funding for loan growth, debt service, and shareholder returns. Strong cash conversion (FCF ~net income) supports resilience through credit cycles and funds capital programs without sole reliance on capital markets.
Read all positive factors
OneMain Holdings (OMF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.44B
Dividend Yield6.07%
Average Volume (3M)1.61M
Price to Earnings (P/E)10.3
Beta (1Y)1.36
Revenue Growth9.51%
EPS Growth29.38%
CountryUS
Employees9,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.59
Shares Outstanding117,152,060
10 Day Avg. Volume1,253,173
30 Day Avg. Volume1,609,795
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)2.36
Price to Sales (P/S)1.29
P/FCF Ratio2.56
Enterprise Value/Market Cap4.37
Enterprise Value/Revenue4.50
Enterprise Value/Gross Profit9.46
Enterprise Value/Ebitda21.83
Forecast
1Y Price Target
$67.00Price Target Upside21.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)7.5
Revenue Forecast (FY)$5.33B
OneMain Holdings Business Overview & Revenue Model
Company Description
OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. ...
How the Company Makes Money
OneMain primarily makes money from (1) interest income and (2) fees and ancillary product revenue, while managing funding costs and credit losses.
1) Net interest income on consumer loans: The core business is originating and holding consumer ins...
OneMain Holdings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based financial performance in 2025—robust earnings, revenue growth, higher capital generation, successful funding execution, and meaningful product and operational initiatives—while acknowledging ongoing credit dynamics (notably a concentrated back book and elevated but improving card losses), a sizable provision and steady reserve posture, and macroeconomic uncertainty. Management provided constructive 2026 guidance (6%–9% receivables growth, C&I net charge-offs 7.4%–7.9%, OpEx ratio ~6.6%) reflecting confidence balanced by conservatism. Overall, the favorable results, strategic progress, and balance sheet strength materially outweigh the noted credit and macro risks.Positive Updates
Strong Full-Year Earnings Growth
Full-year C&I earnings per share were $6.66, up 36% year over year; fourth-quarter C&I adjusted earnings per diluted share were $1.59, up 37% year over year; fourth-quarter GAAP net income was $204 million ($1.72 per diluted share), up 64% year over year.
Negative Updates
Back-Book Delinquency Concentration
The pre-August 2022 'back book' remains a headwind: it comprises just 6% of the portfolio but accounts for 17% of 30+ delinquencies, causing disproportionate contribution to overall delinquency and losses.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Earnings Growth
Full-year C&I earnings per share were $6.66, up 36% year over year; fourth-quarter C&I adjusted earnings per diluted share were $1.59, up 37% year over year; fourth-quarter GAAP net income was $204 million ($1.72 per diluted share), up 64% year over year.
Read all positive updates
Company Guidance
OneMain guided 2026 managed receivables growth of 6–9%, C&I net charge‑offs of 7.4–7.9% (C&I includes the growing card portfolio), and a full‑year OpEx ratio of roughly 6.6% (modestly better than 2025); they expect losses to be seasonally higher in H1 and lower in H2 and to drive continued capital generation growth after 2025 cap gen of $913M ($225M in Q4). Additional metrics: consumer loan yield is expected to stay near the Q4 level of 22.5%; credit card NCOs were 17.1% in Q4 with a long‑run target ~15–17% and card contribution to C&I losses expected to add ~10 bps more in 2026 versus 2025; loan loss reserves were $2.9B (11.5% coverage) and expected to remain around current levels; net leverage was 5.4x (target 4–6x); over 90% of expected 2026 average debt is at fixed rates and interest expense as a percent of receivables is expected to be similar to 2025 (~5.2–5.3%). Capital allocation: $4.20 dividend (~7% yield), $1B share repurchase authorization through 2028 (Q4 repurchases 1.2M shares for $70M), and a $2.4B forward‑flow whole‑loan program running through mid‑2028 (≈half executed in 2026).OneMain Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.24B | 5.72B | 5.30B | 5.09B | 4.97B |
| Gross Profit | 2.97B | 2.50B | 2.56B | 2.80B | 3.44B |
| EBITDA | 1.29B | 944.00M | 1.10B | 1.42B | 2.00B |
| Net Income | 783.00M | 509.00M | 641.00M | 872.00M | 1.31B |
Balance Sheet | |||||
| Total Assets | 27.39B | 25.91B | 24.29B | 22.54B | 22.08B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 2.00B | 2.66B | 2.23B | 2.45B |
| Total Debt | 22.69B | 21.44B | 19.81B | 18.28B | 17.75B |
| Total Liabilities | 23.99B | 22.72B | 21.11B | 19.52B | 18.99B |
| Stockholders Equity | 3.40B | 3.19B | 3.19B | 3.02B | 3.09B |
Cash Flow | |||||
| Free Cash Flow | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Operating Cash Flow | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Investing Cash Flow | -3.16B | -3.27B | -2.86B | -2.12B | -2.14B |
| Financing Cash Flow | 520.00M | 161.00M | 932.00M | -326.00M | -1.81B |
OneMain Holdings Technical Analysis
Negative
54.97
Price Trends
56.38
Negative
60.13
Negative
57.89
Negative
Market Momentum
-0.58
Negative
54.85
Neutral
89.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMF, the sentiment is Negative. The current price of 54.97 is above the 20-day moving average (MA) of 52.55, below the 50-day MA of 56.38, and below the 200-day MA of 57.89, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 54.85 is Neutral, neither overbought nor oversold. The STOCH value of 89.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMF.
OneMain Holdings Risk Analysis
OneMain Holdings disclosed 40 risk factors in its most recent earnings report. OneMain Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OneMain Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.24B | 6.42 | 16.09% | 1.12% | -4.32% | 58.34% | |
71 Outperform | $3.47B | 12.62 | 24.45% | ― | 21.10% | 76.12% | |
68 Neutral | $6.44B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $4.39B | 6.01 | 31.14% | 1.88% | 0.59% | -1.11% | |
60 Neutral | $708.10M | -193.38 | 10.79% | ― | 2.31% | -27.81% | |
58 Neutral | $4.74B | 11.59 | 26.63% | ― | 10.30% | 154.64% |
* Financial Sector Average
OMF
OneMain Holdings
54.97
17.50
46.71%
BFH
Bread Financial Holdings
75.17
32.93
77.96%
CACC
Credit Acceptance
441.09
-27.19
-5.81%
SLM
SLM
22.16
-2.21
-9.05%
WRLD
World Acceptance
143.43
29.80
26.23%
ENVA
Enova International
138.77
52.58
61.00%
OneMain Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
OneMain Holdings Posts Strong 2025 Results, Raises Shareholder Payouts
Positive
Feb 5, 2026
On February 5, 2026, OneMain Holdings reported a strong finish to 2025, with fourth-quarter pretax income rising to $249 million and net income to $204 million, up from $164 million and $126 million, respectively, a year earlier, driving diluted E...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.