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OMF

OneMain Holdings NYSE:OMF Stock Report

Last Price

US$29.52

Market Cap

US$3.7b

7D

-4.7%

1Y

-48.2%

Updated

30 Sep, 2022

Data

Company Financials +
OMF fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance2/6
Financial Health1/6
Dividends4/6

OMF Stock Overview

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses.

OneMain Holdings, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for OneMain Holdings
Historical stock prices
Current Share PriceUS$29.52
52 Week HighUS$60.38
52 Week LowUS$28.77
Beta1.61
1 Month Change-15.49%
3 Month Change-23.35%
1 Year Change-48.25%
3 Year Change-16.63%
5 Year Change2.22%
Change since IPO53.27%

Recent News & Updates

Aug 25

OneMain Holdings: Juice Your Portfolio With This High Yield

Summary OneMain Holdings has friendly shareholder policies, such as high dividends and share buyback programs. The company has a reasonable payout ratio, and has ample liquidity and cash flow to sustain its policies. OneMain Holdings remains profitable and has seen limited deterioration in its loan portfolio. Thesis OneMain Holdings, Inc. (OMF) is a high-dividend stock that can provide steady income stream in a diversified portfolio. We believe that the company's history of dividend payouts, generous share buyback program, and solid loan performance and financials make this company a good investment looking for high dividend yield, capital preservation, and a steady income stream. Company Overview OneMain Holdings is a financial services company that specializes in providing loan services to borrowers with limited access to credit. The company mainly provides personal small loans to borrowers as well as offer credit card services. OneMain Holdings is a national company with 1,400 branch locations nationwide. Year-to-date, the stock price has seen a decline of -21.01%, underperforming the S&P 500 index, which has seen a decline of -12.54% in the same time frame. OMF Year to Date Total Returns (Daily) data by YCharts Dividends and Share Buybacks OneMain Holdings currently has a $300 million share buyback program, which amounts to more than 5% of its market capitalization. In addition to this generous buyback program, the company has recently announced a quarterly dividend of $0.95 per share - resulting in a 10.2% annualized dividend yield. Using the FY 2022 EPS consensus forecast of $7.69 per share, the $3.80 in annual dividends equates to less than 50% dividend payout ratio. While we do not believe that the dividend yield is likely to be sustained in the short-term, we believe that current payout ratio and the history of paying $0.95 per share in the past few quarters show the future long-term dividend potential of the business. The dividend history and payout ratio should provide some degree of safety for the company to continue pay out high dividends (even if it is less than the current $0.95 per share) in the event of an earnings downturn from a recession. Loan Performance and Reserves With the recent economic slowdown, potential widespread charge-offs and loan losses should be of concern to investors. Based on the most recent results, the delinquency rates and net charge-offs are still at a reasonable level, though it is important to note that the substantial rise in 30+ days delinquency in the last quarter is worrisome as it is often a leading indicator of future loan losses and charge-offs. Regardless, the current levels are manageable and a deterioration in loans is expected as the economy slows down from the Federal Reserve's tightening monetary policy. We will continue to assess how the loans performance in subsequent quarters; however, as of now, we believe that the firm is well-capitalized enough and generates enough free cash flow to cover any medium term loan losses. OneMain Holdings Earnings Presentation In addition, we find that the firm has done a good job maintaining loan loss reserves with more than $2 billion in loan loss reserve at 11% of its net loan portfolio. Even though the net charge-off increased quarter-over-quarter ($262 million to $283 million), the loan loss reserve increased over the same time period, which shows that management is proactively managing the risk and potential loan loss in the portfolio. OneMain Holdings Earnings Presentation Stable Financials We like the company's fairly consistent financial performance. Our thesis centers around the sustainability of the dividend and its ability to maintain its generous buyback program. Though there has been a quarter-over-quarter deterioration in the earnings, our focus centers on the continued profitability and free cash flow generation to maintain its dividend and buyback programs. Even in a cyclical downturn, the company has earned $280 million on a GAAP basis this quarter, which far exceeds the $246 million in cash dividends paid during this year (1Q22 and 2Q22). Not only that, the company also has $526 million in cash as of June 30, 2022, and we believe that the excess income and the ample liquidity on hand should give confidence to investors that the company is well-positioned to navigate the economic uncertainty.

Shareholder Returns

OMFUS Consumer FinanceUS Market
7D-4.7%-4.2%-2.5%
1Y-48.2%-40.3%-23.2%

Return vs Industry: OMF underperformed the US Consumer Finance industry which returned -38% over the past year.

Return vs Market: OMF underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is OMF's price volatile compared to industry and market?
OMF volatility
OMF Average Weekly Movement6.1%
Consumer Finance Industry Average Movement7.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: OMF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: OMF's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19208,800Doug Shulmanhttps://www.onemainfinancial.com

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards and insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans.

OneMain Holdings, Inc. Fundamentals Summary

How do OneMain Holdings's earnings and revenue compare to its market cap?
OMF fundamental statistics
Market CapUS$3.65b
Earnings (TTM)US$1.06b
Revenue (TTM)US$3.12b

3.4x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OMF income statement (TTM)
RevenueUS$3.12b
Cost of RevenueUS$180.00m
Gross ProfitUS$2.94b
Other ExpensesUS$1.88b
EarningsUS$1.06b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.58
Gross Margin94.23%
Net Profit Margin34.04%
Debt/Equity Ratio590.9%

How did OMF perform over the long term?

See historical performance and comparison

Dividends

36.6%

Current Dividend Yield

40%

Payout Ratio