OneMain Holdings (OMF) AI Stock Analysis

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OneMain Holdings

(NYSE:OMF)

Rating:73Outperform

Price Target:

$62.00

▲(6.00% Upside)

OneMain Holdings demonstrates solid financial performance with consistent revenue growth and efficient operations, although high leverage poses potential risks. The stock's valuation is attractive with a low P/E ratio and high dividend yield. The recent earnings call was optimistic, highlighting strong capital generation and positive credit trends. Technical indicators suggest a neutral short-term trend with potential for upward movement. Recent corporate events further strengthen the company's financial position.

Positive Factors

Credit Performance

OMF's underwriting discipline is viewed as prudent, with the 'front book' showing strength.

Dividend Yield

OMF pays an 8.5% dividend yield at current prices.

Earnings

OMF reported 2Q EPS of $1.45, above the estimate of $1.34 and FS consensus of $1.23.

Negative Factors

Delinquencies

Early stage delinquencies are up 8% after four months of declines, indicating a potential risk.

Financial Pressure

Monthly losses in May increased by 37bps, suggesting rising financial pressure.

Operating Expenses

Operating expenses at $469M, up 11% y/y, came in above expectations.

OneMain Holdings (OMF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.80B

Dividend Yield7.11%

Average Volume (3M)1.11M

Price to Earnings (P/E)10.3

Beta (1Y)1.37

Revenue Growth9.41%

EPS Growth13.98%

CountryUS

Employees9,000

SectorFinancial

Sector Strength71

IndustryFinancial - Credit Services

Share Statistics

EPS (TTM)1.45

Shares Outstanding118,870,350

10 Day Avg. Volume965,946

30 Day Avg. Volume1,107,174

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap4.02

Enterprise Value/Revenue4.56

Enterprise Value/Gross Profit13.70

Enterprise Value/Ebitda15.12

Forecast

1Y Price Target

$64.09

Price Target Upside9.57% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

OneMain Holdings Business Overview & Revenue Model

Company DescriptionOneMain 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. The company also offers credit cards and insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It operates through a network of approximately 1,400 branch offices in 44 states in the United States, as well as through its website onemainfinancial.com. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.

How the Company Makes MoneyOneMain 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 Earnings Call Summary

Earnings Call Date:Jul 25, 2025

(Q2-2025)

% Change Since: 1.63%|

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Positive

The earnings call showcased a strong financial performance with significant capital generation, record-high receivables, and positive credit trends. However, there are challenges such as expected moderation in growth and high losses in the credit card portfolio. Overall, the sentiment is optimistic but acknowledges areas needing attention.

Q2-2025 Updates

Positive Updates

Significant Capital Generation Growth

Capital generation was $222 million, up 63% year-over-year, with C&I adjusted earnings per share up 42%.

Record Receivables and Revenue

Total revenue grew 10% and receivables grew 7% year-over-year, surpassing the $25 billion mark for the first time.

Positive Credit Trends

30-plus delinquency rates improved to 5.07%, down 29 basis points year-over-year, with net charge-offs also showing significant reductions.

Growth in Credit Card and Auto Finance Segments

Credit card receivables grew 61% year-over-year, and auto finance receivables increased by over $400 million. The auto finance business also showed strong growth in dealer engagement and originations.

Strong Funding and Market Access

Raised $1.8 billion in the quarter through both secured and unsecured markets, contributing to a robust liquidity profile.

Improved Yield and Revenue Guidance

Consumer loan yield improved, and total revenue growth is expected to be at the high end of the 6% to 8% range.

Negative Updates

Moderation in Originations Growth Expected

Despite a strong quarter, originations growth is expected to moderate in the second half of the year due to lapping previous growth initiatives.

High Losses in Credit Card Portfolio

Credit card losses remained high, though slightly improved, indicating ongoing challenges in this segment.

Increased Operating Expenses

Operating expenses were up 11% compared to the previous year, though partially attributed to unusually low expenses in the prior period.

Company Guidance

During the OneMain Financial Second Quarter 2025 Earnings Conference Call, the company reported notable financial metrics and achievements. Capital generation increased by 63% year-over-year to $222 million. The company achieved a 42% increase in C&I adjusted earnings per share, now at $1.45. Total revenue grew by 10%, while receivables surpassed $25 billion for the first time, reflecting a 7% year-over-year growth. Originations rose by 9%, supported by data analytics and innovations. Credit performance improved, with a 30-plus delinquency rate of 5.07%, down 29 basis points year-over-year. C&I net charge-offs were reduced to 7.6%, down 88 basis points from the previous year. OneMain updated its 2025 net charge-off expectations to the lower half of its initial range due to strong credit performance in the first half. Additionally, the credit card portfolio grew to $752 million in receivables, a 61% increase from the previous year, and the auto finance business saw a 14% increase in active dealers and a 29% rise in quarterly originations. The company raised $1.8 billion in capital, enhancing its liquidity and flexibility.

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

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

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

OneMain Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price58.49

Price Trends

50DMA

55.58

Positive

100DMA

51.28

Positive

200DMA

51.00

Positive

Market Momentum

MACD

0.39

Negative

RSI

62.66

Neutral

STOCH

86.39

Negative

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 58.49 is above the 20-day moving average (MA) of 56.83, above the 50-day MA of 55.58, and above the 200-day MA of 51.00, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 62.66 is Neutral, neither overbought nor oversold. The STOCH value of 86.39 is Negative, 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BFH	77 Outperform	$2.82B	10.24	9.19%	1.39%	-4.15%	-38.33%
ENVA	76 Outperform	$2.73B	11.71	21.56%	―	23.42%	59.17%
YRD	74 Outperform	$504.61M	2.74	14.69%	6.61%	12.45%	-36.64%
OMF	73 Outperform	$6.80B	10.34	20.47%	7.11%	9.41%	13.98%
CACC	71 Outperform	$5.38B	14.07	27.30%	―	12.63%	149.03%
WRLD	67 Neutral	$916.47M	11.62	19.08%	―	0.77%	12.08%
Sector *	62 Neutral	C$15.64B	6.67	13.72%	5.97%	22.38%	-10.22%

* Financial Sector Average

Performance Comparison

OMF

OneMain Holdings

58.49

15.36

35.61%

BFH

Bread Financial Holdings

61.45

7.97

14.90%

CACC

Credit Acceptance

477.66

19.69

4.30%

WRLD

World Acceptance

170.65

58.45

52.09%

YRD

Yiren Digital

5.90

1.37

30.24%

ENVA

Enova International

110.09

27.41

33.15%

OneMain Holdings Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

OneMain Holdings Issues $750M Senior Notes

Positive

Aug 12, 2025

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.

Private Placements and Financing

OneMain Holdings Issues $750M Senior Notes

Neutral

Jul 30, 2025

On July 29, 2025, OneMain Holdings, Inc., through its subsidiary OneMain Finance Corporation, entered into an underwriting agreement with Wells Fargo Securities for the issuance and sale of $750 million in 6.125% Senior Notes due 2030. The offering is expected to close on August 12, 2025, and the proceeds will be used to redeem outstanding 9.000% Senior Notes due 2029, with any additional funds allocated for general corporate purposes.

The most recent analyst rating on (OMF) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.

DividendsFinancial Disclosures

OneMain Holdings Announces Quarterly Dividend Increase

Positive

Jul 25, 2025

On July 25, 2025, OneMain Holdings announced a quarterly dividend of $1.04 per share, payable on August 13, 2025, reflecting its strong financial performance in the second quarter of 2025. The company reported a significant increase in pretax and net income compared to the previous year, driven by growth in consumer loan originations and improved credit performance, which underscores its robust business model and strategic initiatives.

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.

Private Placements and FinancingBusiness Operations and Strategy

OneMain Holdings Issues $800M Senior Notes

Neutral

Jun 11, 2025

On June 11, 2025, OneMain Finance Corporation, a subsidiary of OneMain Holdings, issued $800 million in 7.125% Senior Notes due 2032. 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 position and stakeholder interests.

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.

Shareholder Meetings

OneMain Holdings Stockholders Approve Key Proposals in June

Neutral

Jun 10, 2025

On June 10, 2025, OneMain Holdings, Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were voted on. The stockholders approved the amendment and restatement of the company’s Charter to limit officer liability and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025. However, the proposal to eliminate the classified structure of the Board of Directors was not approved.

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.

Private Placements and FinancingBusiness Operations and Strategy

OneMain Holdings Announces $800M Senior Notes Issuance

Neutral

May 29, 2025

On May 28, 2025, OneMain Holdings, Inc. announced that its subsidiary, OneMain Finance Corporation, entered into an underwriting agreement with Barclays Capital Inc. for the issuance and sale of $800 million in Senior Notes due 2032. The offering is expected to close on June 11, 2025, and the proceeds will be used to redeem a portion of outstanding notes due 2026, impacting the company’s financial strategy and stakeholder interests.

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.

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.Date of analysis: Aug 13, 2025