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OneMain Holdings
(NYSE:OMF)
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Rating:66Neutral
Price Target:
$68.00
▲(13.83% Upside)
Action:Reiterated
Date:07/31/26
The score is driven by strong valuation (low P/E and high dividend yield) and constructive price trends (trading above key moving averages), supported by a generally positive earnings-call outlook with reiterated guidance and growth. The primary constraint is financial risk from structurally high leverage, which reduces resilience if credit losses or funding conditions worsen.
Positive Factors
Strong cash generation and FCF growth
Sustained, accelerating free cash flow provides durable funding for dividends, buybacks, reserve builds and tech investment. Strong cash conversion reduces reliance on external funding, enhances operational flexibility, and helps absorb credit volatility over the next several quarters.
Negative Factors
High leverage elevates balance‑sheet risk
Persistent high leverage limits the company’s shock absorption capacity if credit performance worsens or funding costs rise. Leverage amplifies earnings volatility, constrains strategic flexibility (M&A or larger tech investment), and increases refinancing sensitivity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF growth
Sustained, accelerating free cash flow provides durable funding for dividends, buybacks, reserve builds and tech investment. Strong cash conversion reduces reliance on external funding, enhances operational flexibility, and helps absorb credit volatility over the next several quarters.
Read all positive factors
OneMain Holdings (OMF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.32B
Dividend Yield6.7%
Average Volume (3M)1.07M
Price to Earnings (P/E)9.4
Beta (1Y)1.38
Revenue Growth6.93%
EPS Growth19.96%
CountryUS
Employees9,300
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)6.64
Shares Outstanding115,530,950
10 Day Avg. Volume975,218
30 Day Avg. Volume1,069,984
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$69.75Price Target Upside16.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)7.13
Revenue Forecast (FY)$5.23B
OneMain Holdings Business Overview & Revenue Model
Company Description
OneMain Holdings, Inc. functions as a financial services holding company, primarily engaged in consumer lending and the provision of insurance products. The firm is responsible for originating, assessing, and servicing personal loans, which may be...
How the Company Makes Money
OneMain makes money primarily by originating and servicing consumer installment loans and earning interest income over the life of those loans. Its core revenue stream is finance charges (interest) paid by borrowers, which are recognized as intere...
OneMain Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: the company delivered healthy top-line growth (managed receivables +7%, originations +10%), meaningful product momentum (auto +19% originations, cards rapid scale and revenue yield gains), improving early-stage delinquency trends, strong recoveries, solid funding access and continued investment in technology. Offsetting these positives are elevated year-over-year net charge-offs and a modest reserve build (driven by rapid card growth and prior vintage delinquencies), a small decline in EPS versus prior year, and a persistent back-book delinquency drag. Management maintained full-year guidance and emphasized a conservative underwriting posture while opportunistically investing and returning capital. Overall, the positives (growth, improving delinquencies, funding strength, product scaling and efficiency gains) outweigh the near-term credit and reserve headwinds.Positive Updates
Robust Receivables and Originations Growth
Managed receivables rose to $26.9B, up $1.6B or 7% year over year. Total originations were $4.3B, up 10% YoY. Auto finance originations grew 19% YoY and auto receivables reached $3.0B, up 14% YoY. Credit card receivables increased ~$161M in the quarter and nearly $400M YoY.
Negative Updates
Year-over-Year Net Charge-Offs Increased
C&I net charge-offs were 8.2% (down 21 bps sequentially but up 63 bps YoY). Consumer loan net charge-offs (ex-card) were 7.8% (down 25 bps sequentially but up 58 bps YoY). Higher 90+ delinquencies from prior periods rolled into losses this quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Robust Receivables and Originations Growth
Managed receivables rose to $26.9B, up $1.6B or 7% year over year. Total originations were $4.3B, up 10% YoY. Auto finance originations grew 19% YoY and auto receivables reached $3.0B, up 14% YoY. Credit card receivables increased ~$161M in the quarter and nearly $400M YoY.
Read all positive updates
Company Guidance
OneMain reiterated full‑year 2026 guidance with managed receivables growth of 6–9%, C&I net charge‑offs of 7.4–7.9% and an OpEx ratio of ~6.6%, and said funding costs should remain ~5.3% of average net receivables; the company supports that outlook with Q2 results including managed receivables of $26.9B (+7% YoY), originations of $4.3B (+10% YoY), total revenue of $1.6B (+6%), interest income $1.4B (+6%), consumer loan yield 22.7% (up 16 bps QoQ), card total revenue yield 33.6% (+33 bps YoY), provision expense $610M (NCOs $506M plus $104M reserve build), loan loss reserves of $2.9B (11.6% of receivables, expected to be ~11.7% in H2 as cards grow), Q2 recoveries $117M (1.9% of avg receivables), C&I NCOs 8.2% and consumer NCOs 7.8%, net leverage 5.5x (4–6x target), a $1.1B 3‑year ABS issuance at ~5.1%, Q2 buybacks of 576k shares for $32M (YTD repurchases $137M; 2.5M shares H1), and a $4.20 annualized dividend (~7% yield).OneMain Holdings Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
38
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.36B | 6.24B | 5.72B | 5.30B | 5.09B | 4.97B |
| Gross Profit | 3.70B | 2.97B | 2.50B | 2.56B | 2.80B | 3.44B |
| EBITDA | 1.82B | 1.29B | 944.00M | 1.10B | 1.42B | 2.00B |
| Net Income | 781.00M | 783.00M | 509.00M | 641.00M | 872.00M | 1.31B |
Balance Sheet | ||||||
| Total Assets | 27.42B | 27.39B | 25.91B | 24.29B | 22.54B | 22.08B |
| Cash, Cash Equivalents and Short-Term Investments | 2.22B | 1.33B | 2.00B | 2.66B | 2.23B | 2.45B |
| Total Debt | 22.77B | 22.69B | 21.44B | 19.81B | 18.28B | 17.75B |
| Total Liabilities | 24.04B | 23.99B | 22.72B | 21.11B | 19.52B | 18.99B |
| Stockholders Equity | 3.38B | 3.40B | 3.19B | 3.19B | 3.02B | 3.09B |
Cash Flow | ||||||
| Free Cash Flow | 3.23B | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Operating Cash Flow | 3.23B | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Investing Cash Flow | -3.31B | -3.16B | -3.27B | -2.86B | -2.12B | -2.14B |
| Financing Cash Flow | -132.00M | 520.00M | 161.00M | 932.00M | -326.00M | -1.81B |
OneMain Holdings Technical Analysis
Positive
59.74
Price Trends
58.14
Positive
56.09
Positive
57.81
Positive
Market Momentum
0.59
Positive
53.52
Neutral
37.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMF, the sentiment is Positive. The current price of 59.74 is below the 20-day moving average (MA) of 60.37, above the 50-day MA of 58.14, and above the 200-day MA of 57.81, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.25B | 8.31 | 17.04% | 0.86% | 0.85% | 117.85% | |
74 Outperform | $6.31B | 17.78 | 25.76% | ― | 17.65% | 43.92% | |
68 Neutral | $4.86B | 7.18 | 30.31% | 2.14% | 4.76% | 78.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $7.32B | 9.41 | 23.07% | 7.01% | 6.93% | 19.96% | |
66 Neutral | $5.81B | 13.88 | 29.39% | ― | 4.52% | 72.48% | |
62 Neutral | $844.00M | 20.88 | 11.00% | ― | 4.36% | ― |
* Financial Sector Average
OMF
OneMain Holdings
62.58
10.10
19.25%
BFH
Bread Financial Holdings
108.07
51.24
90.16%
CACC
Credit Acceptance
568.91
121.40
27.13%
SLM
SLM
26.00
-4.58
-14.98%
WRLD
World Acceptance
179.81
25.45
16.49%
ENVA
Enova International
254.14
153.58
152.72%
OneMain Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
OneMain Holdings Reports Q2 Results, Maintains Shareholder Returns
Neutral
Jul 29, 2026
On July 29, 2026, OneMain Holdings reported second-quarter 2026 net income of $152 million and diluted EPS of $1.32, down from $167 million and $1.40 a year earlier, as higher loss provisions and operating costs offset solid revenue growth. Manage...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
OneMain Stockholders Back Governance and Incentive Plan
Positive
Jun 22, 2026
On June 16, 2026, OneMain Holdings, Inc. held its 2026 Annual Meeting of Stockholders, with about 89% of outstanding shares represented, and shareholders approved all key governance and compensation items on the agenda. Investors re-elected Phylli...
Stock BuybackDividendsFinancial Disclosures
OneMain Holdings Posts Strong Q1 2026 Earnings, Dividend
Positive
May 1, 2026
On May 1, 2026, OneMain Holdings reported first-quarter 2026 net income of $226 million and diluted EPS of $1.93, up from $213 million and $1.78 a year earlier, supported by 6% growth in managed receivables to $26.1 billion and higher revenues. Th...
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.