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OneMain Holdings
(NYSE:OMF)
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Rating:67Neutral
Price Target:
$60.00
▼(-5.11% Downside)
Action:Reiterated
Date:08/21/26
OMF’s score is driven primarily by a mixed financial profile: strong cash generation and improving recent profitability are meaningfully offset by structurally high leverage. Technicals are supportive with positive momentum and the stock above key moving averages, while valuation is a clear positive given the low P/E and high dividend yield. The earnings call adds moderate support via reiterated guidance and growth trends, partially tempered by elevated charge-offs and reserve building; recent financing activity is slightly positive but reinforces leverage sensitivity.
Positive Factors
Receivables and origination growth
Growing receivables and originations indicate sustained demand across OneMain’s nonprime lending franchise. Expansion in auto, cards, and core loans broadens the platform’s earning-asset base and supports continued revenue growth if underwriting and servicing discipline remain effective.
Negative Factors
Highly leveraged balance sheet
High leverage magnifies returns when credit performance is strong but leaves less balance-sheet protection when losses rise or funding conditions weaken. Debt materially exceeding equity can constrain capital allocation and make maintaining stable funding more important across the credit cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Receivables and origination growth
Growing receivables and originations indicate sustained demand across OneMain’s nonprime lending franchise. Expansion in auto, cards, and core loans broadens the platform’s earning-asset base and supports continued revenue growth if underwriting and servicing discipline remain effective.
Read all positive factors
OneMain Holdings (OMF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.48B
Dividend Yield7.58%
Average Volume (3M)880.86K
Price to Earnings (P/E)8.3
Beta (1Y)1.31
Revenue Growth6.93%
EPS Growth19.96%
CountryUS
Employees9,300
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)6.65
Shares Outstanding115,041,466
10 Day Avg. Volume995,132
30 Day Avg. Volume880,860
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)2.36
Price to Sales (P/S)1.29
P/FCF Ratio2.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$68.92Price Target Upside8.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)6.96
Revenue Forecast (FY)$5.26B
OneMain Holdings Business Overview & Revenue Model
Company Description
OneMain Holdings, Inc. functions as a financial services holding company, primarily engaged in consumer lending and the provision of insurance products. The firm is responsible for originating, assessing, and servicing personal loans, which may be...
How the Company Makes Money
OneMain primarily makes money by originating and servicing consumer installment loans and earning interest income over the life of those loans. Its core revenue stream is net interest income (interest and fees earned on loans and held-for-investme...
OneMain Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: the company delivered healthy top-line growth (managed receivables +7%, originations +10%), meaningful product momentum (auto +19% originations, cards rapid scale and revenue yield gains), improving early-stage delinquency trends, strong recoveries, solid funding access and continued investment in technology. Offsetting these positives are elevated year-over-year net charge-offs and a modest reserve build (driven by rapid card growth and prior vintage delinquencies), a small decline in EPS versus prior year, and a persistent back-book delinquency drag. Management maintained full-year guidance and emphasized a conservative underwriting posture while opportunistically investing and returning capital. Overall, the positives (growth, improving delinquencies, funding strength, product scaling and efficiency gains) outweigh the near-term credit and reserve headwinds.Positive Updates
Robust Receivables and Originations Growth
Managed receivables rose to $26.9B, up $1.6B or 7% year over year. Total originations were $4.3B, up 10% YoY. Auto finance originations grew 19% YoY and auto receivables reached $3.0B, up 14% YoY. Credit card receivables increased ~$161M in the quarter and nearly $400M YoY.
Negative Updates
Year-over-Year Net Charge-Offs Increased
C&I net charge-offs were 8.2% (down 21 bps sequentially but up 63 bps YoY). Consumer loan net charge-offs (ex-card) were 7.8% (down 25 bps sequentially but up 58 bps YoY). Higher 90+ delinquencies from prior periods rolled into losses this quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Robust Receivables and Originations Growth
Managed receivables rose to $26.9B, up $1.6B or 7% year over year. Total originations were $4.3B, up 10% YoY. Auto finance originations grew 19% YoY and auto receivables reached $3.0B, up 14% YoY. Credit card receivables increased ~$161M in the quarter and nearly $400M YoY.
Read all positive updates
Company Guidance
OneMain reiterated full‑year 2026 guidance with managed receivables growth of 6–9%, C&I net charge‑offs of 7.4–7.9% and an OpEx ratio of ~6.6%, and said funding costs should remain ~5.3% of average net receivables; the company supports that outlook with Q2 results including managed receivables of $26.9B (+7% YoY), originations of $4.3B (+10% YoY), total revenue of $1.6B (+6%), interest income $1.4B (+6%), consumer loan yield 22.7% (up 16 bps QoQ), card total revenue yield 33.6% (+33 bps YoY), provision expense $610M (NCOs $506M plus $104M reserve build), loan loss reserves of $2.9B (11.6% of receivables, expected to be ~11.7% in H2 as cards grow), Q2 recoveries $117M (1.9% of avg receivables), C&I NCOs 8.2% and consumer NCOs 7.8%, net leverage 5.5x (4–6x target), a $1.1B 3‑year ABS issuance at ~5.1%, Q2 buybacks of 576k shares for $32M (YTD repurchases $137M; 2.5M shares H1), and a $4.20 annualized dividend (~7% yield).OneMain Holdings Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
38
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.42B | 6.24B | 5.72B | 5.30B | 5.09B | 4.97B |
| Gross Profit | 4.08B | 2.97B | 2.50B | 2.56B | 2.80B | 3.44B |
| EBITDA | 1.95B | 1.29B | 944.00M | 1.10B | 1.42B | 2.00B |
| Net Income | 781.00M | 783.00M | 509.00M | 641.00M | 872.00M | 1.31B |
Balance Sheet | ||||||
| Total Assets | 27.42B | 27.39B | 25.91B | 24.29B | 22.54B | 22.08B |
| Cash, Cash Equivalents and Short-Term Investments | 2.22B | 1.33B | 2.00B | 2.66B | 2.23B | 2.45B |
| Total Debt | 22.77B | 22.69B | 21.44B | 19.81B | 18.28B | 17.75B |
| Total Liabilities | 24.04B | 23.99B | 22.72B | 21.11B | 19.52B | 18.99B |
| Stockholders Equity | 3.38B | 3.40B | 3.19B | 3.19B | 3.02B | 3.09B |
Cash Flow | ||||||
| Free Cash Flow | 3.23B | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Operating Cash Flow | 3.23B | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Investing Cash Flow | -3.31B | -3.16B | -3.27B | -2.86B | -2.12B | -2.14B |
| Financing Cash Flow | -132.00M | 520.00M | 161.00M | 932.00M | -326.00M | -1.81B |
OneMain Holdings Technical Analysis
Negative
63.23
Price Trends
61.86
Negative
58.91
Negative
58.13
Negative
Market Momentum
-1.74
Positive
28.24
Positive
5.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMF, the sentiment is Negative. The current price of 63.23 is above the 20-day moving average (MA) of 60.44, above the 50-day MA of 61.86, and above the 200-day MA of 58.13, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 28.24 is Positive, neither overbought nor oversold. The STOCH value of 5.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMF.
OneMain Holdings Risk Analysis
OneMain Holdings disclosed 40 risk factors in its most recent earnings report. OneMain Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OneMain Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $518.07M | 1.78 | 68.06% | 4.67% | 10.16% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.48B | 8.32 | 23.07% | 7.58% | 6.93% | 19.96% | |
64 Neutral | $4.18B | 11.69 | 25.76% | ― | 17.65% | 43.92% | |
63 Neutral | $282.03M | 6.07 | 12.49% | 3.97% | 9.63% | 40.75% | |
63 Neutral | $804.45M | 19.84 | 11.00% | ― | 4.36% | -42.48% | |
61 Neutral | $1.33B | 9.12 | 23.09% | 16.39% | 83.72% | 35.89% |
* Financial Sector Average
OMF
OneMain Holdings
55.39
3.43
6.60%
RM
Regional Management
30.23
-7.27
-19.39%
WRLD
World Acceptance
170.78
1.27
0.75%
ATLC
Atlanticus Holdings
87.53
29.47
50.76%
ENVA
Enova International
167.11
54.90
48.93%
OPFI
OppFi
6.03
-5.17
-46.16%
OneMain Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
OneMain Holdings Issues New Senior Unsecured Notes
Positive
Aug 20, 2026
On August 20, 2026, OneMain Finance Corporation issued $600 million of 7.125% senior unsecured notes due March 15, 2034 in an underwritten public offering, guaranteed on an unsecured basis by OneMain Holdings, Inc. The notes bear interest payable ...
Business Operations and StrategyPrivate Placements and Financing
OneMain Holdings Issues $600 Million Senior Notes Offering
Positive
Aug 7, 2026
On August 6, 2026, OneMain Finance Corporation, a subsidiary of OneMain Holdings, entered into an underwriting agreement with Barclays Capital and BMO Capital Markets to issue $600 million of 7.125% senior notes due 2034 in an underwritten public ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
OneMain Holdings Reports Q2 Results, Maintains Shareholder Returns
Neutral
Jul 29, 2026
On July 29, 2026, OneMain Holdings reported second-quarter 2026 net income of $152 million and diluted EPS of $1.32, down from $167 million and $1.40 a year earlier, as higher loss provisions and operating costs offset solid revenue growth. Manage...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.