OneMain Holdings, Inc.OMF
NYSE • Financial Services
$52.42
P/E
7.77
PEG
1.27
FCF Yield
—
Rev Growth YoY
+5.7% YoY
Gross Margin
78.9%
Health Score
6/10
D/E Ratio
6.67
Confidence
LOW
Business Snapshot
OneMain Holdings operates in the consumer credit space, primarily offering secured and unsecured personal loans to non-prime borrowers in the United States. The company generates the vast majority of its revenue from interest income on its loan portfolio, supplemented by fees and insurance products. With TTM revenue of $6.33 billion and net income of $796 million, OneMain is a significant participant in the subprime lending market, competing against other specialised consumer finance firms and some large banks. A defining characteristic is its high gross margin of 78.9%, which reflects the high interest rate environment and lower funding costs relative to other lenders, yet it carries an exceptionally high debt-to-equity ratio of 6.67x, revealing a capital structure heavily reliant on borrowings.
Financial Health
Gross margin improved sharply from 46.3% in the prior year to 78.9% currently, while net margin stands at 12.6% — both healthy figures for a consumer lender. However, the balance sheet is stretched: debt-to-equity of 6.67x is extremely high for any industry, though the current ratio of 7.19x provides ample short-term liquidity coverage...
Risk Assessment
- DEBT — Debt/equity of 6.67x is very high, leaving the company with limited financial flexibility and heightened sensitivity to rising interest rates.
- REVENUE DECELERATION — Quarter-over-quarter revenue declined 1.6%, a notable deceleration from the 5.7% year-over-year growth, suggesting a potential pause in loan demand.
- 52-WEEK POSITION — The current price of $52.42 is 27% below the 52-week high of $71.93 and below the midpoint of the range, indicating negative price momentum over the past year.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....