NYSE:OMF

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record, good value and pays a dividend.


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

Stable Share Price: OMF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

OMF

0.6%

US Consumer Finance

0.06%

US Market


1 Year Return

38.1%

OMF

14.0%

US Consumer Finance

19.4%

US Market

Return vs Industry: OMF exceeded the US Consumer Finance industry which returned 14.8% over the past year.

Return vs Market: OMF exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

OMFIndustryMarket
7 Day2.1%0.6%0.06%
30 Day10.6%0.4%1.1%
90 Day9.8%5.9%8.9%
1 Year49.9%38.1%15.9%14.0%21.9%19.4%
3 Year85.2%70.6%40.4%33.7%48.9%39.3%
5 Year33.9%23.4%46.1%35.7%71.9%53.1%

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

Valuation

Is OneMain Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OMF ($47.91) is trading below our estimate of fair value ($100.41)

Significantly Below Fair Value: OMF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OMF is good value based on its PE Ratio (7.6x) compared to the Consumer Finance industry average (8.8x).

PE vs Market: OMF is good value based on its PE Ratio (7.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: OMF is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: OMF is overvalued based on its PB Ratio (1.5x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is OneMain Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMF's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: OMF's earnings (6.7% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: OMF's earnings are forecast to grow, but not significantly.

Revenue vs Market: OMF's revenue (20.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: OMF's revenue (20.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OMF's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has OneMain Holdings performed over the past 5 years?

34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMF has high quality earnings.

Growing Profit Margin: OMF's current net profit margins (31.8%) are higher than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: OMF's earnings have grown significantly by 34.6% per year over the past 5 years.

Accelerating Growth: OMF's earnings growth over the past year (91.3%) exceeds its 5-year average (34.6% per year).

Earnings vs Industry: OMF earnings growth over the past year (91.3%) exceeded the Consumer Finance industry 11.4%.


Return on Equity

High ROE: OMF's Return on Equity (19.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OneMain Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OMF has a low level of unsold assets or inventory.

Debt Coverage by Assets: OMF's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: OMF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if OMF has a sufficient allowance for bad loans.

Low Risk Liabilities: OMF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if OMF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OMF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if OMF has an appropriate level of bad loans.


Next Steps

Dividend

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

8.00%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 19 2020Ex Dividend DateFeb 25 2020Dividend Pay DateMar 13 202017 days from Ex DividendBuy in the next 6 days to receive upcoming dividend

Dividend Yield vs Market

company8.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years9.8%

Current dividend yield vs market & industry

Notable Dividend: OMF's dividend (7.97%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: OMF's dividend (7.97%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether OMF's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if OMF's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.9%), OMF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OMF's dividends in 3 years are forecast to be well covered by earnings (19.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Doug Shulman (51yo)

1.4yrs

Tenure

US$5,750,706

Compensation

Mr. Douglas H. Shulman, also known as Doug, J.D., has been the President, Chief Executive Officer and Director of OneMain Holdings, Inc. since September 8, 2018. Mr. Shulman was Senior Executive Vice Presi ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD5.75M) is about average for companies of similar size in the US market ($USD6.26M).

Compensation vs Earnings: Insufficient data to compare Doug's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Shulman
President1.4yrsUS$5.75m0.031% $2.0m
Micah Conrad
Executive VP & CFO0.9yrsno data0.0074% $478.6k
Rajive Chadha
Executive VP & COO0.6yrsno datano data
Michael Hedlund
Senior VP & Group Controller3.8yrsno data0.0029% $187.3k
Jenny Osterhout
Chief Administrative Officer0.08yrsno datano data
Kathryn Miller
Head of Investor Relations0yrsno datano data
Adam Rosman
Executive VP & General Counsel0.08yrsno datano data
Jack Erkilla
Senior VP9.2yrsno datano data
Richard Tambor
Chief Risk Officer5.8yrsno datano data
Dinesh Goyal
Chief Credit Officer0yrsno datano data

1.2yrs

Average Tenure

53yo

Average Age

Experienced Management: OMF's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Shulman
President1.4yrsUS$5.75m0.031% $2.0m
Richard Smith
Independent Director1.7yrsUS$130.00k0.0016% $105.4k
Roy Guthrie
Independent Director7.2yrsUS$317.26k0.017% $1.1m
Marc Becker
Independent Director1.7yrsno datano data
Jay Levine
Chairman of the Board1.7yrsUS$71.83m2.28% $148.4m
Matthew Michelini
Independent Director1.7yrsno datano data
Valerie Keating
Independent Director1.7yrsUS$122.33k0.0016% $105.4k
Aneek Mamik
Independent Director1.7yrsno data0.00087% $56.6k
Peter Sinensky
Independent Director1.7yrsno datano data

1.7yrs

Average Tenure

51yo

Average Age

Experienced Board: OMF's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OMF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: OneMain Holdings, Inc.
  • Ticker: OMF
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$6.503b
  • Shares outstanding: 136.19m
  • 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. It provides secured and unsecured personal loans; credit insurance products, such as life, disability, and involuntary unemployment insurance products; non-credit insurance; and auto membership plans, as well as retail sales finance services. The company also services and holds real estate loans secured by first or second mortgages on residential real estate. As of December 31, 2018, it operated through a network of approximately 1,600 branches in 44 states in the United States, as well as through omf.com Website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1920 and is based in Evansville, Indiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:10
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.