This morning OneMain (OMF) shares are trading at $36.45, and have moved -27.5% over the last 52 weeks, with a high of $55.5 and a low of $28.77. During this time, the stock lagged the S&P 500 index by -12.8%. OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The mid-cap Financial Services company has 8,800 full time employees and is based in Evansville, IN. OneMain has returned a 9.6% dividend yield over the last 12 months.
Snapshot of the Company's Income Statement, Balance Sheet, and Cash Flows:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue | $2,318,000,000 | $2,685,000,000 | $2,587,000,000 | $3,443,000,000 |
| Revenue Growth | n/a | 15.83% | -3.65% | 33.09% |
| Operating Margins | 27.31% | 42.2% | 39.93% | 53.01% |
| Operating Margins Growth | n/a | 54.52% | -5.38% | 32.76% |
| Earnings Per Share | $3.29 | $6.27 | $5.41 | $9.87 |
| EPS Growth | n/a | 90.58% | -13.72% | 82.44% |
| Free Cash Flow | $2,046,000,000 | $2,362,000,000 | $2,212,000,000 | $2,247,000,000 |
| FCF Growth | n/a | 15.44% | -6.35% | 1.58% |
| LT Debt to Equity | 4.0 | 3.98 | 5.17 | 5.74 |
Basic Valuation Metrics:
Compared to the Financial Services sector's average of 13.34, OneMain has a trailing twelve month price to earnings (P/E) ratio of 4.8 and, based on its Eps guidance of 7.02, an expected P/E ratio of 5.3. The firm's price to earnings growth (PEG) is 0.32, which indicates that the company is undervalued in terms of its expected earnings growth. OneMain's price to book (P/B) ratio is 1.5 compared to its sector average of 1.95.
As of the date of publication, the company is trading -43.4% below their Graham number, implying there is a margin of safety for the stock. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 7.68 * 24.564) = $65.15
Sentiment Overview:
14 analysts are following OneMain and have set target prices ranging from $36 to $60 per share. On average, they have given the company a rating of buy. At today's prices, OMF is trading -22.38% away from its average analyst target price of $47.50 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 4.9% of the company's shares are tied to short positions. Institutions own 86.9% of OneMain's shares, while the insider ownership rate stands at 4.31%. The biggest shareholder is Vanguard Group, Inc. with a 10.61% stake in the company worth approximately $478,100,060.00.
