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Now trading at a price of $46.64, OneMain has moved 2.3% so far today.

Over the last year, OneMain logged a -1.1% change, with its stock price reaching a high of $50.02 and a low of $32.79. Over the same period, the stock underperformed the S&P 500 index by -20.5%. AThe company's 50-day average price was $47.17. OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. The mid-cap Finance company is based in Evansville, IN. OneMain has offered a 8.8% dividend yield over the last 12 months.

The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:

2018 2019 2020 2021 2022 2023
Revenue (MM) $3,658 $4,127 $4,368 $4,364 $4,435 $4,500
Revenue Growth n/a 12.82% 5.84% -0.09% 1.63% 1.47%
Interest Income (MM) $2,783 $3,157 $3,341 $3,427 $3,543 $3,519
Operating Margins 17% 27% 22% 40% 26% 19%
Net Margins 12% 21% 17% 30% 20% 15%
Net Income (MM) $447 $855 $730 $1,314 $878 $658
Depreciation & Amort. (MM) $289 $271 $264 $264 $262 $265
Earnings Per Share $3.29 $6.27 $5.41 $9.87 $7.06 $5.46
EPS Growth n/a 90.58% -13.72% 82.44% -28.47% -22.66%
Diluted Shares (MM) 136 136 135 133 124 121
Free Cash Flow (MM) $2,046 $2,362 $2,212 $2,247 $2,387 $2,505
Total Debt (MM) $15,178 $17,212 $17,800 $17,750 $18,281 $19,851
Net Debt / EBITDA 15.88 11.68 12.51 8.58 12.48 16.6

OneMain has strong operating margins with a stable trend, positive EPS growth, and generally positive cash flows. However, the firm has a highly leveraged balance sheet.

OneMain Is Overvalued:

OneMain has a trailing twelve month P/E ratio of 8.9, compared to an average of 12.38 for the Finance sector. Based on its EPS guidance of $7.74, the company has a forward P/E ratio of 6.1. The 13.0% compound average growth rate of OneMain's historical and projected earnings per share yields a PEG ratio of 0.68. This suggests that its shares are undervalued. In contrast, OneMain is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.76 is higher than the sector average of 1.58. The company's shares are currently trading 20.6% above their Graham number.

OneMain Has an Analyst Consensus of Some Upside Potential:

The 14 analysts following OneMain have set target prices ranging from $47.0 to $62.0 per share, for an average of $53.14 with a buy rating. The company is trading -12.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.

OneMain has an average amount of shares sold short because 3.5% of the company's shares are sold short. Institutions own 79.9% of the company's shares, and the insider ownership rate stands at 0.37%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $551,229,897.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.