Onity Group (ONIT) AI Stock Analysis

• Market Cap: $353.87M
• Dividend Yield: N/A
• Average Volume (3M): 37.54K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.20
• Revenue Growth: -6.28%
• EPS Growth: 112.66%
• Country: US
• Employees: 4,200
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 2.03
• Shares Outstanding: 8,058,874
• 10 Day Avg. Volume: 28,032
• 30 Day Avg. Volume: 37,538
• PEG Ratio: -0.05
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -0.30
• Enterprise Value/Market Cap: 42.32
• Enterprise Value/Revenue: 13.30
• Enterprise Value/Gross Profit: 28.45
• Enterprise Value/Ebitda: 65.14
• 1Y Price Target: $55.00
• Price Target Upside: 23.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.5
• Revenue Forecast (FY): $997.80M

• Rating: 63 Neutral
• Price Target: $46.00 ▲(3.19% Upside)

Onity Group's overall stock score is driven by strong earnings call performance and positive corporate events, which are offset by financial challenges related to high leverage and cash flow management. Technical indicators show a positive trend, while valuation remains reasonable.

Positive Factors

Technological Advancements

Onity's focus on AI and technology enhances operational efficiency and customer experience, providing a competitive edge in the security solutions market.

Strategic Agreement

The strategic sale simplifies Onity's business model, strengthens financial metrics, and allows focus on more profitable markets, aiding long-term growth.

Servicing Portfolio Growth

Growth in the servicing portfolio indicates robust demand and operational strength, supporting sustained revenue and profitability.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Cash Flow Challenges

Negative cash flow growth indicates operational cash challenges, potentially hindering investment in growth opportunities and affecting financial health.

Client Non-Renewal

The non-renewal of a major client could lead to revenue loss and operational restructuring, affecting Onity's market position and financial performance.

Onity Group Business Overview & Revenue Model

Company Description

Onity Group (ONIT) is a leading provider of electronic locking solutions and access management systems for the hospitality, education, and healthcare sectors. The company specializes in the development and deployment of advanced security technologies, including electronic locks, mobile access solutions, and integrated management software, designed to enhance safety and operational efficiency for its customers.

How the Company Makes Money

Onity Group generates revenue primarily through the sale of its electronic locking systems and services, including installation and maintenance. Key revenue streams include direct sales of locking hardware, software solutions for access management, and ongoing service agreements for system support. The company also benefits from partnerships with major hospitality chains and property management companies, which facilitate bulk procurement of its products. Additionally, Onity capitalizes on trends in mobile access technology by offering innovative solutions that integrate with customer operations, further driving revenue through value-added services.

Onity Group Financial Statement Overview

Summary

Onity Group's financial statements reflect challenges in profitability, leverage, and cash flow management. High debt levels and inconsistent profitability pose risks, despite some operational efficiencies.

Income Statement

Onity Group's income statement shows a mixed performance. The gross profit margin has been relatively stable, but the net profit margin is weak due to inconsistent net income, with a recent return to profitability. Revenue growth has been inconsistent, with a decline in the latest year. EBIT and EBITDA margins are moderate, indicating operational efficiency but also highlighting challenges in maintaining profitability.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio indicating significant reliance on debt financing. Return on equity is low, reflecting challenges in generating returns for shareholders. The equity ratio is weak, suggesting limited buffer against liabilities. Overall, the balance sheet indicates financial risk due to high debt levels.

Cash Flow

Cash flow analysis shows negative free cash flow growth, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is negative, highlighting operational cash challenges. Free cash flow to net income is also negative, suggesting difficulties in generating cash from operations. Overall, cash flow management appears strained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.07B	1.14B	999.50M	1.08B	976.80M
Gross Profit	526.50M	495.60M	584.50M	459.20M	521.00M	524.80M
EBITDA	229.90M	256.10M	238.80M	285.50M	235.80M	175.50M
Net Income	34.20M	33.90M	-63.70M	25.70M	18.10M	-40.20M
Balance Sheet
Total Assets	16.11B	16.44B	12.51B	12.40B	12.15B	10.65B
Cash, Cash Equivalents and Short-Term Investments	172.80M	184.80M	201.60M	208.00M	192.80M	284.80M
Total Debt	0.00	14.74B	10.93B	10.46B	10.47B	9.29B
Total Liabilities	15.56B	15.94B	12.11B	11.94B	11.67B	10.24B
Stockholders Equity	551.30M	492.90M	401.80M	456.70M	476.70M	415.37M
Cash Flow
Free Cash Flow	-1.09B	-688.70M	-111.80M	-31.70M	-1.30B	-16.30M
Operating Cash Flow	-735.40M	-651.00M	10.40M	173.20M	-468.40M	261.00M
Investing Cash Flow	1.51B	478.50M	-100.30M	-149.10M	-1.01B	-527.90M
Financing Cash Flow	-788.40M	182.90M	70.80M	-13.40M	1.38B	131.80M

Onity Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONIT, the sentiment is Positive. The current price of 44.58 is above the 20-day moving average (MA) of 43.50, above the 50-day MA of 40.30, and above the 200-day MA of 37.70, indicating a bullish trend. The MACD of 0.99 indicates Positive momentum. The RSI at 60.37 is Neutral, neither overbought nor oversold. The STOCH value of 78.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONIT.

Onity Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEL	68 Neutral	$764.77M	8.18	16.04%	―	36.73%	27.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IOR	64 Neutral	$74.31M	17.31	3.36%	―	―	-30.69%
ONIT	63 Neutral	$353.87M	13.49	6.71%	―	-6.28%	112.66%
SNFCA	61 Neutral	$205.99M	9.06	5.23%	―	3.25%	-37.79%
GHI	56 Neutral	$157.53M	35.31	1.99%	20.49%	-12.56%	-69.72%
CNF	56 Neutral	$34.36M	―	―	―	―	―

Onity Group Corporate Events

Onity Group CFO to Present at Finance Conference

On December 2, 2025, Sean O’Neil, Executive Vice President and Chief Financial Officer of Onity Group Inc., will present at the Bank of America Leveraged Finance Conference. This event signifies Onity Group’s engagement with investors and its strategic positioning in the financial market.

Onity Group Announces Strategic Agreement with PHH Mortgage

On November 17, 2025, Onity Group Inc.’s subsidiary, PHH Mortgage Corporation, announced a strategic agreement with Finance of America Reverse LLC to sell its reverse mortgage servicing portfolio and certain reverse originations assets. This transaction, expected to close in the first quarter of 2026, will see PHH sell reverse mortgage servicing rights for approximately 40,000 Ginnie Mae home equity conversion mortgage loans, valued at $9.6 billion, and become a subservicer for these assets under a three-year agreement. The deal is projected to yield net proceeds of $100 to $110 million, which Onity plans to use for growth, debt reduction, and a potential share repurchase program. This move is intended to simplify Onity’s business model, strengthen financial metrics, and allow the company to focus on more lucrative markets and products.

Onity Group Faces Client Non-Renewal, Plans Restructuring

On October 31, 2025, Onity Group Inc. announced that Rithm Capital Corp., one of its largest subservicing clients, will not renew its subservicing agreements, effective January 31, 2026. These agreements accounted for a significant portion of Onity’s servicing portfolio, including a large share of delinquent loans. Despite the expected restructuring obligation, Onity does not foresee a material financial impact for 2026, as it plans to replace the earnings with more profitable consumer and commercial relationships. In its third-quarter 2025 results, Onity reported a net income of $18 million and a 39% year-over-year increase in originations volume, highlighting strong performance and growth in its servicing and originations business.

Onity Group Appoints Robert Welborn as New Director

On September 30, 2025, Onity Group Inc. announced the appointment of Robert S. Welborn as a director, effective October 1, 2025. The Board temporarily increased its size to eight directors to accommodate Mr. Welborn, who is recognized as an independent director under NYSE and SEC standards. Mr. Welborn, a marketing technology consultant, brings extensive experience from his previous roles at Meta Inc., General Motors, and USAA. He will serve on the Company’s Risk and Compliance Committee. Additionally, DeForest B. Soaries, Jr. will not stand for re-election at the 2026 annual shareholder meeting, and the Board will reduce its size to seven directors at that time. Onity expressed gratitude for Dr. Soaries’ 11 years of service, noting his departure is not due to any disagreements with the company.