OneMain Holdings (OMF) AI Stock Analysis

• Market Cap: $7.26B
• Dividend Yield: 6.64%
• Average Volume (3M): 966.41K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.33
• Revenue Growth: 9.41%
• EPS Growth: 13.98%
• Country: US
• Employees: 9,000
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Credit Services
• EPS (TTM): 1.45
• Shares Outstanding: 118,870,350
• 10 Day Avg. Volume: 861,958
• 30 Day Avg. Volume: 966,409
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.76
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 13.70
• Enterprise Value/Ebitda: 15.12
• 1Y Price Target: $64.45
• Price Target Upside: 2.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 76 Outperform
• Price Target: $66.00 ▲(5.41% 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

Credit Performance

Late-stage delinquencies have been declining for the past 16 months, showing results from improved curing and collections efforts.

Earnings

OMF announced adjusted C&I EPS above both JPMe and consensus estimates.

Revenue Growth

Revenue growth is expected to be at the high end of the prior range, indicating strong performance.

Negative Factors

Credit Risk

Greater credit risk is anticipated due to the regressive nature of tariffs and potential higher costs.

Delinquencies

Early-stage delinquencies have been steadily increasing for the past 34 consecutive months.

Operating Expenses

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

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 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.

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.

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.

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 Price: 62.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 62.61 is above the 20-day moving average (MA) of 59.09, above the 50-day MA of 57.80, and above the 200-day MA of 51.85, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 70.57 is Negative, neither overbought nor oversold. The STOCH value of 91.48 is Negative, 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
BFH	79 Outperform	$3.05B	11.09	9.19%	1.25%	-4.15%	-38.33%
ENVA	78 Outperform	$3.01B	12.74	21.56%	―	23.42%	59.17%
YRD	76 Outperform	$500.29M	2.87	13.64%	6.74%	12.69%	-35.36%
OMF	76 Outperform	$7.26B	11.05	20.47%	6.64%	9.41%	13.98%
CACC	69 Neutral	$5.76B	14.98	27.30%	―	12.63%	149.03%
WRLD	69 Neutral	$957.15M	11.86	19.08%	―	0.77%	12.08%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%

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.