OneMain shares moved -20.1% over the last 52 weeks, with a high of $50.8 and a low of $28.77. During this time, the stock lagged the S&P 500 index by -14.0%. As of April 2023, the company's 50-day average price is $39.94. OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The mid-cap Finance company has 9,200 full time employees and is based in Evansville, IN. OneMain has returned a 10.1% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue | $3,814,000 | $3,906,000 | $4,036,000 | $4,199,000 |
| Net Income | $855,000 | $730,000 | $1,314,000 | $878,000 |
| Net Margins | 22.42% | 18.69% | 32.56% | 20.91% |
| Earnings Per Share | $6.27 | $5.41 | $9.87 | $7.06 |
| Diluted Shares | 136,327 | 134,919 | 133,054 | 120,812 |
| Free Cash Flow | $2,362,000 | $2,212,000 | $2,247,000 | $2,387,000 |
| Long Term Debt | $17,212,000 | $17,800,000 | $17,750,000 | $18,281,000 |
| Net Debt / EBITDA | 3.53 | 3.39 | 3.17 | 3.58 |
OneMain Is Reasonably Priced:
Compared to the Finance sector's average of 14.34, OneMain has a trailing twelve month P/E ratio of 5.7 and, according to its EPS guidance of $7.67, an expected P/E ratio of 5.2. OneMain's PEG ratio is 1.38 based on its 4.1% compound average growth rate of historical and projected earnings per share. This implies that the company's shares are fairly valued. The market is giving OneMain a fair value in terms of its book value since its P/B ratio of 1.5 is lower than the sector average, which stands at 1.57. As of the date of publication, the company's shares are trading -40.5% below their Graham number of $63.45.
There's an Analyst Consensus of Strong Upside Potential for OneMain:
13 analysts are following OneMain and have set target prices ranging from $41.0 to $62.0 per share. On average, they have given the company a rating of buy. At the current price of $39.94, OMF is trading -23.4% away from its average analyst target price of $52.15 per share, implying an analyst consensus of strong upside potential for the stock. The company has an average amount of shares sold short since 3.4% of the company's shares are tied to short positions. Institutions own 92.5% of OneMain's shares, while the insider ownership rate stands at 4.54%. which is a decent amount of insider shareholders. The company's biggest shareholder is the Vanguard Group, Inc. with a 10% stake in the company worth $454,626,082.
