OneMain Holdings (OMF) AI Stock Analysis

• Market Cap: $8.04B
• Dividend Yield: 6.11%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.28
• 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: 1,247,547
• 30 Day Avg. Volume: 1,117,676
• 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: 3.44
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 9.57
• Enterprise Value/Ebitda: 23.06
• 1Y Price Target: $66.50
• Price Target Upside: -2.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 6.62
• Revenue Forecast (FY): $4.90B

• Rating: 79 Outperform
• Price Target: $78.00 ▲(14.20% Upside)

OneMain Holdings demonstrates strong financial performance, robust technical indicators, and attractive valuation metrics. The earnings call highlights significant growth and strategic initiatives, reinforcing confidence in the company's future prospects. High leverage is a concern, but the company's strong cash flow and profitability mitigate this risk.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Improved Credit Metrics

Improved credit metrics reflect effective risk management, enhancing the company's ability to maintain profitability and reduce losses.

Strong Cash Flow Generation

Robust cash flow generation supports financial flexibility, enabling investment in growth opportunities and shareholder returns.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in volatile markets, potentially impacting the company's long-term financial health.

Economic Uncertainty

Economic uncertainty can affect consumer demand and credit performance, posing risks to revenue and profitability.

Competitive Environment

Increased competition may pressure margins and market share, challenging the company's ability to sustain growth.

OneMain Holdings Business Overview & Revenue Model

Company Description

OneMain Holdings, Inc. is a leading provider of personal loans in the United States, specializing in offering secured and unsecured loans to consumers. The company operates primarily through its extensive network of branch locations as well as online platforms, catering to individuals seeking financial solutions for various needs such as debt consolidation, home improvement, and unexpected expenses. OneMain Holdings is committed to providing personalized service and transparent lending options, focusing on helping customers achieve their financial goals.

How the Company Makes Money

OneMain Holdings generates revenue primarily through the interest and fees associated with the personal loans it originates. The company's loan products typically feature fixed interest rates and flexible repayment terms, allowing for predictable monthly payments for borrowers. Key revenue streams include interest income from loans, late fees, and other ancillary fees charged to customers. Additionally, OneMain has established partnerships with various financial service providers to expand its product offerings and enhance customer service, contributing to its overall earnings. The company's focus on responsible lending practices and risk management helps maintain a stable revenue base, even in fluctuating economic conditions.

OneMain Holdings Financial Statement Overview

Summary

OneMain Holdings shows steady revenue growth and strong profitability with a solid net profit margin. However, high leverage on the balance sheet poses a risk, despite strong cash flow generation.

Income Statement

OneMain Holdings shows a steady revenue growth rate of 2.15% in the TTM, with a solid net profit margin of 15.01%. However, the gross profit margin has slightly decreased compared to previous years. The EBIT margin is relatively stable, indicating efficient cost management. Overall, the income statement reflects a healthy financial performance with room for improvement in gross profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 6.61, indicating significant leverage, which could pose risks in volatile markets. However, the return on equity is strong at 21.40%, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure. While the balance sheet shows financial stability, the high leverage remains a concern.

Cash Flow

OneMain Holdings demonstrates strong cash flow performance with a free cash flow growth rate of 5.27% in the TTM. The operating cash flow to net income ratio is robust, and the free cash flow to net income ratio is 1.0, indicating efficient cash generation relative to net income. The cash flow statement highlights the company's ability to generate and manage cash effectively.

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	2.89B	2.50B	2.56B	2.80B	3.44B	2.59B
EBITDA	1.20B	944.00M	1.10B	1.42B	2.00B	1.24B
Net Income	705.00M	509.00M	641.00M	872.00M	1.31B	730.00M
Balance Sheet
Total Assets	26.98B	25.91B	24.29B	22.54B	22.08B	22.47B
Cash, Cash Equivalents and Short-Term Investments	873.00M	2.06B	2.73B	2.23B	2.45B	4.12B
Total Debt	22.34B	21.44B	19.81B	18.28B	17.75B	17.80B
Total Liabilities	23.61B	22.72B	21.11B	19.52B	18.99B	19.03B
Stockholders Equity	3.38B	3.19B	3.19B	3.02B	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: 68.30
• 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 68.3 is above the 20-day moving average (MA) of 64.94, above the 50-day MA of 60.04, and above the 200-day MA of 54.07, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 68.94 is Neutral, neither overbought nor oversold. The STOCH value of 68.99 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	79 Outperform	$8.04B	11.59	21.41%	6.11%	9.51%	29.38%
BFH	72 Outperform	$3.56B	7.94	14.81%	1.10%	-4.32%	58.34%
ENVA	71 Outperform	$4.06B	15.05	23.81%	―	21.10%	76.12%
CACC	71 Outperform	$5.10B	12.23	28.14%	―	10.30%	154.64%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	67 Neutral	$5.55B	9.64	27.85%	1.90%	0.59%	-1.11%
WRLD	64 Neutral	$719.03M	13.65	14.57%	―	2.31%	-27.81%

OneMain Holdings Corporate Events

OneMain Holdings Issues $1 Billion Senior Unsecured Notes

On December 18, 2025, OneMain Finance Corporation, a direct subsidiary of OneMain Holdings, issued $1.0 billion of 6.750% senior unsecured notes due September 15, 2033, in an underwritten public offering, guaranteed on an unsecured basis by OneMain Holdings. The notes rank equally with OMFC’s other unsubordinated debt, are structurally subordinated to liabilities of its subsidiaries, pay semiannual interest starting March 15, 2026, and are callable at a make-whole premium before December 15, 2028 and at step-down redemption prices thereafter, reflecting a move to further diversify and term out the company’s funding while subjecting it to customary covenant and default provisions that shape creditor protections and capital structure flexibility.

OneMain Holdings Announces $1 Billion Senior Notes Sale

On December 4, 2025, OneMain Holdings, Inc. announced that its subsidiary, OneMain Finance Corporation, entered into an underwriting agreement for the issuance and sale of $1.0 billion in 6.750% Senior Notes due 2033. The offering, expected to close on December 18, 2025, aims to repay outstanding secured facilities and support general corporate purposes, potentially impacting the company’s financial positioning and stakeholder interests.

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.