OMFOMF
US • —
$60.97
P/E
9.08
PEG
0.22
FCF Yield
—
Rev Growth YoY
+7.8% YoY
Gross Margin
79.8%
Health Score
5/10
D/E Ratio
6.67
Confidence
LOW
Business Snapshot
OneMain Holdings (OMF) is a consumer finance company that primarily provides non-prime, secured and unsecured personal loans, credit cards, and other lending products to individuals with limited credit access. The company operates across a national branch network in the United States, positioning itself as a specialist in the subprime and near-prime lending market, a segment with significant pricing power but higher credit risk. With a market cap that is not specified in the data, the company’s financial scale cannot be fully assessed, though it generated revenue growth of 7.8% year-over-year. OneMain’s defining characteristic is its focus on non-prime borrowers, a market that offers high-margin lending opportunities but is sensitive to economic downturns.
Financial Health
Gross margin stands at 79.8%, a high figure consistent with a lending business model where interest income drives revenue, though a prior-year comparison is not available for context. Net margin is 12.6%, indicating that the company retains a solid portion of revenue as profit after operating and provision expenses...
Risk Assessment
- DEBT / LIQUIDITY — Debt-to-equity of 6.67x is very high, indicating substantial leverage typical of a consumer lender but increasing vulnerability to rising interest rates or credit losses.
- EARNINGS QUALITY — While the company beat estimates in 4 of 4 recent quarters, strong earnings growth of 42.2% may not be sustainable if driven by one-time factors rather than recurring operational improvement.
- VALUATION — The P/E of 9.08x is below the sector average of 22x, which could signal a value trap if earnings deterioration lies ahead.
- FCF / CASH BURN — Free cash flow is unavailable or negative, preventing a clear assessment of the company’s ability to service debt or return capital to shareholders without raising additional funds....
Gross margin stands at 79.8%, a high figure consistent with a lending business model where interest income drives revenue, though a prior-year comparison is not available for context. Net margin is 12.6%, indicating that the company retains a solid portion of revenue as profit after operating and provision expenses. The balance sheet shows significant leverage with a debt-to-equity ratio of 6.67x, reflecting a capital-intensive lending model that relies on borrowed funds to originate loans. However, the current ratio of 7.19x is exceptionally strong, suggesting the company holds ample short-term assets to cover near-term liabilities. Free cash flow data is unavailable, preventing a direct assessment of cash generation or burn. Overall, the company’s profitability is solid, but the high debt load constrains financial flexibility and increases risk in a rising-rate or recessionary environment.
- DEBT / LIQUIDITY — Debt-to-equity of 6.67x is very high, indicating substantial leverage typical of a consumer lender but increasing vulnerability to rising interest rates or credit losses. - EARNINGS QUALITY — While the company beat estimates in 4 of 4 recent quarters, strong earnings growth of 42.2% may not be sustainable if driven by one-time factors rather than recurring operational improvement. - VALUATION — The P/E of 9.08x is below the sector average of 22x, which could signal a value trap if earnings deterioration lies ahead. - FCF / CASH BURN — Free cash flow is unavailable or negative, preventing a clear assessment of the company’s ability to service debt or return capital to shareholders without raising additional funds.
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