DB:0S1

Stock Analysis Report

Executive Summary

OneMain Holdings, Inc., through its subsidiaries, provides consumer finance and insurance products and services.

Snowflake

Fundamentals

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has OneMain Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.4%

DB:0S1

1.7%

DE Consumer Finance

0.8%

DE Market


1 Year Return

13.3%

DB:0S1

-26.1%

DE Consumer Finance

-10.9%

DE Market

0S1 outperformed the Consumer Finance industry which returned -26.1% over the past year.

0S1 outperformed the Market in Germany which returned -10.9% over the past year.


Share holder returns

0S1IndustryMarket
7 Day7.4%1.7%0.8%
30 Day8.6%-5.2%-5.0%
90 Day25.4%-7.1%-2.9%
1 Year15.1%13.3%-23.2%-26.1%-8.1%-10.9%
3 Year36.8%34.6%-34.2%-47.5%10.4%0.9%
5 Yearn/a-15.4%-40.5%25.5%8.1%

Price Volatility Vs. Market

How volatile is OneMain Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is OneMain Holdings undervalued based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

OneMain Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

OneMain Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

OneMain Holdings is good value based on earnings compared to the Europe Consumer Finance industry average.

OneMain Holdings is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

OneMain Holdings is good value based on expected growth next year.


Price Based on Value of Assets

OneMain Holdings is good value based on assets compared to the Europe Consumer Finance industry average.


Next Steps

Future Growth

How is OneMain Holdings expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

OneMain Holdings's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).

OneMain Holdings's earnings are expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).

OneMain Holdings's revenue growth is expected to exceed the Germany market average.

OneMain Holdings's earnings growth is positive but not above the Germany market average.

OneMain Holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

OneMain Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has OneMain Holdings performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

OneMain Holdings's year on year earnings growth rate has been positive over the past 5 years.

OneMain Holdings's 1-year earnings growth exceeds its 5-year average (177% vs 15.2%)

OneMain Holdings's earnings growth has exceeded the Europe Consumer Finance industry average in the past year (177% vs 8.6%).


Return on Equity

OneMain Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

OneMain Holdings used its assets less efficiently than the Europe Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if OneMain Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is OneMain Holdings's financial position?


Financial Position Analysis

OneMain Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

OneMain Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

OneMain Holdings's level of debt (375.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (542.1% vs 375.5% today).

Debt is not well covered by operating cash flow (14.4%, less than 20% of total debt).

Unable to confirm if the interest payments on OneMain Holdings's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is OneMain Holdings's current dividend yield, its reliability and sustainability?

4.33%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase OneMain Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

OneMain Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.53%).

OneMain Holdings's dividend is below the markets top 25% of dividend payers in Germany (4.08%).

It is too early to tell whether OneMain Holdings has stable dividend payments.

OneMain Holdings only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (9.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.9x coverage).


Next Steps

Management

What is the CEO of OneMain Holdings's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Doug Shulman (51yo)

0.9yrs

Tenure

US$5,750,706

Compensation

Mr. Douglas H. Shulman, also known as Doug, serves as the Chief Executive Officer, President and Director at OneMain Holdings, Inc. since September 1, 2018 and leads a team of 10,000 employees who help mil ...


CEO Compensation Analysis

Doug's remuneration is higher than average for companies of similar size in Germany.

Insufficient data for Doug to compare compensation growth.


Management Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

The tenure for the OneMain Holdings management team is about average.


Board Age and Tenure

1.2yrs

Average Tenure

51yo

Average Age

The average tenure for the OneMain Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$242,62923 Nov 18
Jay Levine
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$24.26
BuyUS$392,49514 Nov 18
Jay Levine
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares15,000
Max PriceUS$26.45

Ownership Breakdown


Management Team

  • Jack Erkilla (60yo)

    Senior VP

    • Tenure: 8.7yrs
  • Lenis McClain (66yo)

    Vice President of Auditing

    • Tenure: 0.0yrs
  • John Anderson (61yo)

    Executive VP of Legal

    • Tenure: 2.5yrs
    • Compensation: US$36.55m
  • Doug Shulman (51yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$5.75m
  • Micah Conrad (48yo)

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Rohit Dewan

    Vice President of Investor Relations

    • Tenure: 4.1yrs
  • Michael Hedlund (46yo)

    Senior VP

    • Tenure: 3.3yrs
  • Kathryn Miller

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Rajive Chadha (54yo)

    Executive VP & COO

    • Tenure: 0.1yrs

Board Members

  • Richard Smith (65yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$130.00k
  • Roy Guthrie (65yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$317.26k
  • Marc Becker (47yo)

    Director

    • Tenure: 1.2yrs
  • Jay Levine (57yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: US$143.49m
  • Matt Michelini (37yo)

    Director

    • Tenure: 1.2yrs
  • Doug Shulman (51yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$5.75m
  • Valerie Keating (55yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$122.33k
  • Aneek Mamik (40yo)

    Director

    • Tenure: 1.2yrs
  • Peter Sinensky (32yo)

    Director

    • Tenure: 1.2yrs

Company Information

OneMain Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OneMain Holdings, Inc.
  • Ticker: 0S1
  • Exchange: DB
  • Founded: 1920
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$5.189b
  • Listing Market Cap: US$4.658b
  • Shares outstanding: 136.09m
  • Website: https://www.onemainfinancial.com

Number of Employees


Location

  • OneMain Holdings, Inc.
  • 601 NW Second Street
  • Evansville
  • Indiana
  • 47708
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OMFNYSE (New York Stock Exchange)YesNew Common SharesUSUSDOct 2013
0S1DB (Deutsche Boerse AG)YesNew Common SharesDEEUROct 2013

Biography

OneMain Holdings, Inc., through its subsidiaries, provides consumer finance and insurance products and services. The company operates in two segments, Consumer and Insurance, and Acquisitions and Servicing ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 22:08
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.