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.
