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OneMain Holdings, Inc. (OMF)
:OMF
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OneMain Holdings
(NYSE:OMF)
Rating:68Neutral
Price Target:―
Positive Factors
Dividend Yield
OMF pays an 8.5% dividend yield at current prices.
Earnings
OMF reported 1Q EPS of $1.72, well above the estimate of $1.43 and consensus of $1.57.
Market Position
OMF commands a 20% market share of the $110B non-prime personal loan market.
Negative Factors
Analyst Expectations
OMF is added to the Evercore ISI Tactical Underperform List as recalibration of Street estimates could pressure the shares near term.
Credit Trends
The card book, though only 3% of receivables, currently has very high losses.
Guidance
Shares of OMF traded down 3% following the release of 4Q24 results and guidance, likely in response to a slower 2025 portfolio growth outlook versus consensus.
OneMain Holdings (OMF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.99B
Dividend Yield8.39%
Average Volume (3M)1.14M
Price to Earnings (P/E)10.7
Beta (1Y)1.37
Revenue Growth9.07%
EPS GrowthN/A
CountryUS
Employees9,000
SectorFinancial
Sector Strength81
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.72
Shares Outstanding118,968,796
10 Day Avg. Volume1,030,437
30 Day Avg. Volume1,141,896
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)1.78
Price to Sales (P/S)0.00
P/FCF Ratio2.71
Enterprise Value/Market Cap4.46
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit11.23
Enterprise Value/Ebitda2.21
Forecast
1Y Price Target
$57.36Price Target Upside13.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
OneMain Holdings Business Overview & Revenue Model
Company DescriptionOneMain Holdings, Inc. (OMF) is a leading financial services company in the United States, specializing in providing personal loans and other financial products to non-prime consumers. The company operates through a wide network of branches and its online platform, offering services like credit insurance and optional credit-related products alongside its core lending operations. Established to help individuals with limited access to traditional banking, OneMain focuses on delivering responsible lending solutions tailored to meet the needs of its customers.
How the Company Makes MoneyOneMain Holdings generates revenue primarily through the interest and fees charged on personal loans issued to its customers. These loans typically cater to non-prime borrowers who may not qualify for credit from traditional financial institutions, allowing OneMain to charge higher interest rates to mitigate risk. Additionally, the company earns money from the sale of credit insurance products, which are often bundled with its loans, providing customers with financial protection in the event of unforeseen circumstances. OneMain's revenue model is supported by its extensive network of branches and a robust online presence, enabling it to reach a broad customer base. Key factors contributing to its earnings include effective risk management strategies, customer retention initiatives, and strategic partnerships that enhance its service offerings.
OneMain Holdings Financial Statement Overview
Summary
OneMain Holdings exhibits robust revenue growth and strong cash flow generation, vital for the credit services industry. However, high leverage remains a significant risk factor, requiring careful debt management. Profitability margins and equity stability offer a mixed view of financial health.Income Statement
OneMain Holdings shows strong revenue growth with a significant increase from $695M in 2024 to $4.245B in TTM 2025. However, the net profit margin is volatile due to fluctuating net income. The EBIT margin is healthy, but the EBITDA margin is inconsistent due to variable EBIT performance across periods.65
Positive
Balance Sheet
The company's high debt-to-equity ratio indicates significant leverage, posing a financial risk. Stockholders' equity remains stable, showing some financial resilience. The equity ratio suggests a moderate level of financial stability, but the substantial total debt requires cautious management.55
Neutral
Cash Flow
Operating cash flow is consistently strong, reflecting good cash generation capability relative to net income. However, free cash flow growth is stagnant, indicating potential challenges in improving cash reserves. The cash flow to net income ratios highlight efficient cash management, supporting financial operations effectively.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.25B | 695.00M | 2.56B | 4.20B | 4.04B | 3.91B | Gross Profit |
| 2.38B | -184.00M | -26.00M | 3.42B | 3.33B | 3.20B | EBIT |
| 3.25B | -2.13B | 1.63B | 1.79B | 1.74B | 977.00M | EBITDA |
| 2.73B | 0.00 | 2.12B | 2.34B | 0.00 | 2.34B | Net Income Common Stockholders |
| 567.00M | 509.00M | 641.00M | 872.00M | 1.31B | 730.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.30B | 2.06B | 1.55B | 498.00M | 1.02B | 2.42B | Total Assets |
| 26.03B | 25.91B | 24.29B | 22.53B | 22.08B | 22.47B | Total Debt |
| 21.49B | 21.44B | 19.81B | 18.28B | 17.75B | 17.80B | Net Debt |
| 20.87B | 20.98B | 18.80B | 17.78B | 17.21B | 15.53B | Total Liabilities |
| 22.75B | 22.72B | 21.11B | 19.50B | 17.75B | 17.84B | Stockholders Equity |
| 3.28B | 3.19B | 3.19B | 3.03B | 3.09B | 3.44B |
| Cash Flow | Free Cash Flow | ||||
| 2.15B | 2.70B | 2.52B | 2.39B | 2.25B | 2.21B | Operating Cash Flow |
| 2.15B | 2.70B | 2.52B | 2.39B | 2.25B | 2.21B | Investing Cash Flow |
| -3.03B | -3.27B | -2.86B | -2.12B | -2.14B | -751.00M | Financing Cash Flow |
| 598.00M | 161.00M | 932.00M | -326.00M | -1.81B | -370.00M |
OneMain Holdings Technical Analysis
Positive
50.34
Price Trends
47.29
Positive
49.74
Positive
48.53
Positive
Market Momentum
1.24
Negative
55.80
Neutral
38.38
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 50.34 is above the 20-day moving average (MA) of 49.40, above the 50-day MA of 47.29, and above the 200-day MA of 48.53, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 38.38 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.44B | 10.89 | 19.94% | ― | 24.47% | 54.18% | |
78 Outperform | $851.97M | 8.79 | 20.78% | ― | -1.46% | ― | |
75 Outperform | $541.98M | 2.50 | 17.96% | 6.15% | 17.03% | -23.72% | |
69 Neutral | $5.59B | 20.55 | 17.24% | ― | 13.77% | 20.95% | |
68 Neutral | $5.99B | 10.66 | 17.46% | 8.39% | 9.07% | ― | |
66 Neutral | $2.39B | 9.15 | 9.34% | 1.64% | -3.20% | -28.69% | |
64 Neutral | $12.66B | 9.79 | 7.67% | 17015.07% | 12.23% | -6.06% |
* Financial Sector Average
Performance Comparison
OMF
OneMain Holdings
50.34
5.76
12.92%
BFH
Bread Financial Holdings
51.29
10.05
24.37%
CACC
Credit Acceptance
481.46
0.17
0.04%
WRLD
World Acceptance
142.79
17.14
13.64%
YRD
Yiren Digital
6.28
1.89
43.05%
ENVA
Enova International
91.28
31.38
52.39%
OneMain Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 4.59%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant growth in capital generation, earnings, and receivables. The company also showed improved credit performance and successful funding strategies. However, there are concerns about the uncertain macroeconomic environment and high credit card charge-offs. Overall, the positive aspects outweigh the negatives.Q1-2025 Updates
Positive Updates
Strong Capital Generation
Capital generation of $194 million was up 25% year over year.
Earnings Growth
C&I adjusted earnings were $1.72 per share, up 19% compared to the previous year.
Revenue and Receivables Growth
Receivables grew 12% year over year, and total revenue increased by 10%.
Originations and Customer Base Expansion
Originations grew 20% year over year, and the company now provides access to credit to over 3.4 million customers, up 14% from a year ago.
Improved Credit Performance
30-plus delinquency rate decreased by 49 basis points year over year to 5.08%, and consumer loan net charge-offs were down 75 basis points.
Successful Funding Strategy
Raised $1.5 billion in secured and unsecured markets, demonstrating leading market access and execution.
Negative Updates
Uncertainty in Macro Environment
The company is operating in an uncertain and rapidly evolving macroeconomic environment, which could impact future performance.
High Credit Card Charge-offs
Credit card net charge-off rate was high at 19.8%, indicating ongoing challenges in this segment.
Potential Impact of Trade Policies
Uncertainty caused by trade policy and potential tariff negotiations could have second-order effects on economic growth, employment, and inflation.
Company Guidance
During the OneMain Holdings, Inc. first quarter 2025 earnings call, the company provided guidance indicating strong financial performance and positive credit trends. Key metrics highlighted include a 25% year-over-year increase in capital generation to $194 million, C&I adjusted earnings per share rising 19% to $1.72, and a 12% year-over-year growth in receivables. Originations grew by 20%, or 13% on an organic basis, and total revenue increased by 10%. The company reported a decrease in 30-plus delinquency to 5.08% and a reduction in C&I net charge-offs to 8.2%, down 49 basis points from the prior year. Additionally, consumer loan net charge-offs fell by 75 basis points to 7.8%. The company maintained its 2025 guidance, projecting a 5% to 8% growth in managed receivables and a 6% to 8% growth in total revenue, with C&I net charge-offs expected between 7.5% to 8% and an operating expense ratio of approximately 6.6%. The company's strategic initiatives and strong balance sheet position it for long-term growth despite the uncertain macroeconomic environment.OneMain Holdings Corporate Events
DividendsFinancial Disclosures
OneMain Holdings Announces Quarterly Dividend and Earnings
Positive
Apr 29, 2025
On April 29, 2025, OneMain Holdings, Inc. announced a quarterly dividend of $1.04 per share, payable on May 16, 2025, to shareholders of record as of May 9, 2025. The company reported strong financial results for the first quarter of 2025, with a net income increase to $213 million and earnings per diluted share rising to $1.78, compared to the previous year. The company’s managed receivables grew by 12% to $24.6 billion, and consumer loan originations increased by 20% to $3.0 billion. These results reflect OneMain’s strategic focus on innovative financial solutions and disciplined credit management, positioning it well for continued value delivery to customers and shareholders.
Spark’s Take on OMF Stock
According to Spark, TipRanks’ AI Analyst, OMF is a Neutral.
OneMain Holdings shows strong revenue growth and robust cash flow but faces challenges with declining net profit margin and high leverage. Technical indicators present mixed signals, while valuation remains a strong point with an attractive P/E ratio and dividend yield. The earnings call highlights growth but also notes increased expenses, impacting overall sentiment. Recent board changes are positive but have a limited immediate effect.
To see Spark’s full report on OMF stock, click here.
Executive/Board Changes
OneMain Holdings Elects Andrew Macdonald to Board
Positive
Mar 17, 2025
On March 17, 2025, OneMain Holdings, Inc. announced the election of Andrew D. Macdonald to its Board of Directors. Macdonald, who is the CEO of Consilio LLC, brings extensive experience in legal technology solutions and enterprise legal services. His appointment is expected to enhance OneMain’s mission of improving financial well-being through his proven track record in leveraging technology and data science for business growth. The company continues to seek additional independent directors to strengthen its board.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.