OneMain Holdings (OMF) AI Stock Analysis

• Market Cap: $7.15B
• Dividend Yield: 7.08%
• Average Volume (3M): 809.30K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.31
• Revenue Growth: 9.41%
• EPS Growth: 13.98%
• Country: US
• Employees: 9,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.45
• Shares Outstanding: 118,870,350
• 10 Day Avg. Volume: 825,023
• 30 Day Avg. Volume: 809,304
• 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: 3.83
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 13.70
• Enterprise Value/Ebitda: 15.12
• 1Y Price Target: $64.30
• Price Target Upside: 9.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $66.00 ▲(12.28% Upside)

OneMain Holdings' strong financial performance, reasonable valuation, and positive earnings call sentiment are the primary drivers of its overall score. The company's strategic initiatives and robust dividend yield further enhance its attractiveness. However, high leverage and potential moderation in growth pose risks that need to be managed carefully.

Positive Factors

Revenue Growth

The 10% revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and financial stability.

Capital Generation

Significant capital generation enhances financial flexibility, allowing for strategic investments and debt management, bolstering long-term growth.

Strategic Initiatives

Innovative use of data analytics for loan origination boosts competitive advantage, supporting sustained growth and customer acquisition.

Negative Factors

High Leverage

High leverage increases financial risk, potentially straining cash flow and limiting flexibility, which could impact long-term stability.

Interest Expenses

Rising interest expenses reduce net income and cash flow, potentially impacting profitability and financial health over the long term.

Credit Card Losses

High credit card losses indicate potential issues in credit risk management, which could affect profitability and require strategic adjustments.

OneMain Holdings Business Overview & Revenue Model

Company Description

OneMain 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 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 exhibits solid financial performance with consistent revenue growth and efficient operations. However, the high leverage could pose potential risks, necessitating careful debt management. The company demonstrates strong cash flow generation, which supports its financial flexibility. 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	6.00B	5.72B	5.30B	5.09B	4.97B	4.93B
Gross Profit	2.00B	2.50B	2.56B	2.80B	3.44B	4.23B
EBITDA	1.81B	2.16B	2.12B	2.34B	3.03B	2.34B
Net Income	663.00M	509.00M	641.00M	872.00M	1.31B	730.00M
Balance Sheet
Total Assets	26.63B	25.91B	24.29B	22.53B	22.08B	22.47B
Cash, Cash Equivalents and Short-Term Investments	2.45B	2.06B	2.73B	2.30B	1.02B	4.19B
Total Debt	22.05B	21.44B	19.81B	18.28B	17.75B	17.80B
Total Liabilities	23.30B	22.72B	21.11B	19.50B	18.99B	19.03B
Stockholders Equity	3.33B	3.19B	3.19B	3.03B	3.09B	3.44B
Cash Flow
Free Cash Flow	2.87B	2.70B	2.52B	2.39B	2.25B	2.21B
Operating Cash Flow	2.87B	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	725.00M	161.00M	932.00M	-326.00M	-1.81B	-370.00M

OneMain Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 58.78
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMF, the sentiment is Neutral. The current price of 58.78 is below the 20-day moving average (MA) of 61.02, below the 50-day MA of 58.91, and above the 200-day MA of 52.42, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 14.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OMF.

OneMain Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BFH	79 Outperform	2.83B	10.28	9.08%	1.40%	-4.15%	-38.33%
ENVA	78 Outperform	3.10B	13.04	20.85%	―	23.42%	59.17%
OMF	76 Outperform	$7.15B	10.87	20.47%	7.08%	9.41%	13.98%
WRLD	75 Outperform	958.40M	12.19	18.96%	―	0.77%	12.08%
CACC	69 Neutral	5.45B	13.44	14.17%	―	12.63%	149.03%
SLM	58 Neutral	5.93B	14.36	28.16%	1.85%	-4.34%	-38.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

OneMain Holdings Corporate Events

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.

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.

OneMain Holdings Issues $750M Senior Notes

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.

OneMain Holdings Announces Quarterly Dividend Increase

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.

OneMain Holdings Issues $800M Senior Notes

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.

OneMain Holdings Stockholders Approve Key Proposals in June

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.