OneMain Holdings, Inc. (OMF)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
OneMain Holdings, Inc. trades at USD61.25, which is 115% below the USD131.91 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 72 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 8.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About OneMain Holdings, Inc.
OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. The company provides origination, underwriting, and servicing of consumer loans, consisting of personal loans and auto finance. It also offers secured auto financing; credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. The company provides personal loans through its branch network, central operations, digital affiliates, and its 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 incorporated in 2013 and is based in Evansville, Indiana.
OMF passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
14 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Glenn Greenberg, Brave Warrior Advisors, LLC$412.05M · 10.2% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$175.86M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$121.33M · 0.1% of book
- Leon Cooperman, COOPERMAN LEON G$107.25M · 3.5% of book
- Samantha McLemore, Patient Capital Management, LLC$41.80M · 1.5% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is OneMain Holdings, Inc. (OMF) undervalued?
Against our discounted cash flow estimate of USD131.91, OMF at USD61.25 is 115% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own OMF?
14 of the institutions we track reported a position in OMF in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is OMF's P/E ratio?
OMF trades at 8.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for OMF, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.