OneMain Holdings (OMF) AI Stock Analysis

• Market Cap: $7.12B
• Dividend Yield: 7.46%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.36
• Revenue Growth: 9.51%
• EPS Growth: 29.38%
• Country: US
• Employees: 9,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.90
• Shares Outstanding: 117,731,910
• 10 Day Avg. Volume: 1,464,328
• 30 Day Avg. Volume: 1,277,080
• PEG Ratio: -0.60
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 2.31
• Enterprise Value/Market Cap: 3.89
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 13.60
• Enterprise Value/Ebitda: 14.40
• 1Y Price Target: $64.33
• Price Target Upside: 8.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 6.36
• Revenue Forecast (FY): $4.86B

• Rating: 77 Outperform
• Price Target: $70.00 ▲(17.94% Upside)

OneMain Holdings demonstrates strong financial performance and attractive valuation, supported by positive technical indicators. The earnings call further reinforces confidence in the company's growth prospects, despite high leverage and economic uncertainties.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and improve product offerings, supporting long-term financial stability.

Credit Metrics Improvement

Improved credit metrics indicate better risk management and credit quality, which enhances profitability and reduces potential losses over time.

Capital Generation

Strong capital generation enhances financial flexibility, enabling strategic investments and shareholder returns, supporting sustainable growth.

Negative Factors

High Leverage

Significant leverage can increase financial risk, limiting the company's ability to withstand economic downturns and impacting long-term financial stability.

Economic Uncertainty

Economic uncertainties can affect consumer demand and credit performance, posing risks to revenue and profitability in the medium term.

Competitive Pressures

Increased competition may pressure margins and market share, requiring strategic adjustments to maintain competitive advantages and profitability.

OneMain Holdings Business Overview & Revenue Model

Company Description

OneMain Holdings, Inc. is a leading consumer finance company in the United States, specializing in providing personal loans and related financial services. The company operates primarily through its subsidiary, OneMain Financial, which offers a range of secured and unsecured loans designed to meet the needs of customers with various credit profiles. OneMain Holdings focuses on serving individuals, often those with limited access to traditional banking services, and provides financial solutions that empower them to achieve their personal financial goals.

How the Company Makes Money

OneMain Holdings generates revenue primarily through the interest and fees associated with the personal loans it offers. The company charges interest on the loans, which is a significant portion of its income, and also collects origination fees when loans are initiated. Additionally, the company's revenue model includes servicing fees from the management of loans and potential ancillary products that may be offered to customers, such as credit insurance. OneMain has established partnerships with various financial service providers to enhance its offerings and improve customer access to financial products, further contributing to its overall earnings.

OneMain Holdings Financial Statement Overview

Summary

OneMain Holdings shows solid financial performance with consistent revenue growth and efficient operations. The company demonstrates strong cash flow generation, which supports its financial flexibility. However, the high leverage could pose potential risks, necessitating careful debt management. Continued focus on improving net margins and managing debt levels will be crucial for sustained financial health.

Income Statement

The income statement reflects a positive trend with a consistent revenue growth rate over the years. The TTM revenue growth is approximately 4.86%, indicating steady business expansion. Gross profit margin for TTM is 33.27%, showing effective cost management. However, the net profit margin for TTM is moderate at 11.05%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are strong at 26.63% and 30.15% respectively, underscoring operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 6.63 in TTM, indicating significant leverage, which could pose financial risks. The equity ratio is low at 12.49%, pointing to a reliance on debt financing. Return on equity is robust at 19.93%, suggesting efficient use of shareholder funds to generate earnings. The balance sheet is stable but carries potential risks due to high leverage.

Cash Flow

The cash flow statement demonstrates strong operational cash flow with a free cash flow to net income ratio of 4.33, indicating solid cash generation relative to net earnings. The free cash flow growth rate is 6.27% over the previous period, showing positive momentum. The operating cash flow to net income ratio is 4.33, highlighting strong cash conversion capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.13B	5.72B	5.30B	5.09B	4.97B	4.93B
Gross Profit	2.04B	2.50B	2.56B	2.80B	3.44B	4.23B
EBITDA	1.92B	2.16B	2.12B	2.34B	3.03B	2.34B
Net Income	705.00M	509.00M	641.00M	872.00M	1.31B	730.00M
Balance Sheet
Total Assets	26.98B	25.91B	24.29B	22.53B	22.08B	22.47B
Cash, Cash Equivalents and Short-Term Investments	2.31B	2.06B	2.73B	2.30B	1.02B	4.19B
Total Debt	22.34B	21.44B	19.81B	18.28B	17.75B	17.80B
Total Liabilities	23.61B	22.72B	21.11B	19.50B	18.99B	19.03B
Stockholders Equity	3.38B	3.19B	3.19B	3.03B	3.09B	3.44B
Cash Flow
Free Cash Flow	3.02B	2.70B	2.52B	2.39B	2.25B	2.21B
Operating Cash Flow	3.02B	2.70B	2.52B	2.39B	2.25B	2.21B
Investing Cash Flow	-3.38B	-3.27B	-2.86B	-2.12B	-2.14B	-751.00M
Financing Cash Flow	499.00M	161.00M	932.00M	-326.00M	-1.81B	-370.00M

OneMain Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 59.35 is above the 20-day moving average (MA) of 56.71, above the 50-day MA of 58.31, and above the 200-day MA of 53.29, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OMF.

OneMain Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	77 Outperform	$7.12B	10.27	21.41%	7.46%	9.51%	29.38%
ENVA	77 Outperform	$3.17B	11.29	23.81%	―	21.10%	76.12%
BFH	71 Outperform	$2.92B	6.51	14.81%	1.35%	-4.32%	58.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	64 Neutral	$5.56B	9.65	27.85%	1.95%	0.59%	-1.11%
WRLD	63 Neutral	$731.81M	12.45	14.57%	―	2.31%	―
CACC	60 Neutral	$4.74B	11.38	28.14%	―	10.30%	154.64%

OneMain Holdings Corporate Events

OneMain Holdings Reports Strong Growth Amid Challenges

The recent earnings call for OneMain Holdings, Inc. painted a picture of robust financial health and strategic growth, with a strong sentiment underscored by significant revenue growth and improved credit metrics. The company showcased its confidence through the approval of a new share repurchase program and an increase in dividends. However, the call also highlighted caution due to economic uncertainties and competitive pressures.

OneMain Holdings Increases Dividend Amid Strong Q3 Results

On October 31, 2025, OneMain Holdings announced a 1% increase in its quarterly dividend to $1.05 per share, payable on November 14, 2025. Additionally, the company reported strong third-quarter results with a pretax income of $263 million and net income of $199 million, reflecting growth in receivables and improved credit performance. The Board of Directors also authorized a new stock repurchase program of up to $1.0 billion, replacing the previous program and set to expire on December 31, 2028. These strategic moves are expected to enhance shareholder value and strengthen OneMain’s market position.

The most recent analyst rating on (OMF) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.

OneMain Holdings Issues $800M in Senior Notes

On September 17, 2025, OneMain Finance Corporation, a subsidiary of OneMain Holdings, issued $800 million in 6.500% Senior Notes due 2033. This move aims to strengthen its financial position by securing funds through an underwritten public offering. The notes are senior unsecured obligations, guaranteed by OneMain Holdings, and are structured to rank equally with other unsubordinated debts. The issuance includes redemption options and covenants that limit asset liens and mergers, potentially impacting the company’s operational flexibility and financial strategy.

The most recent analyst rating on (OMF) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.

OneMain Holdings Issues $800 Million in Senior Notes

On September 3, 2025, OneMain Holdings, Inc., through its subsidiary OneMain Finance Corporation, entered into an underwriting agreement for the issuance and sale of $800 million in senior notes due 2033. The offering, expected to close on September 17, 2025, will support general corporate purposes, potentially including debt repurchases or repayments. This move is part of OneMain’s strategy to manage its financial obligations and strengthen its market position.

The most recent analyst rating on (OMF) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.

OneMain Holdings Issues $750M Senior Notes

On August 12, 2025, OneMain Finance Corporation, a subsidiary of OneMain Holdings, issued $750 million in 6.125% Senior Notes due 2030. These notes, guaranteed by OneMain Holdings, are senior unsecured obligations and are part of a strategic financial maneuver to strengthen the company’s capital structure, potentially impacting its market positioning by enhancing liquidity and financial flexibility.

The most recent analyst rating on (OMF) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.