Onity Group (ONIT) AI Stock Analysis

• Market Cap: $319.39M
• Dividend Yield: N/A
• Average Volume (3M): 28.59K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.29
• Revenue Growth: -9.86%
• EPS Growth: 112.66%
• Country: US
• Employees: 4,200
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 2.03
• Shares Outstanding: 8,055,222
• 10 Day Avg. Volume: 27,739
• 30 Day Avg. Volume: 28,592
• PEG Ratio: -0.05
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -0.30
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $41.00 ▲(3.40% Upside)

Onity Group's overall stock score reflects significant strengths in recent earnings performance and valuation, counterbalanced by financial challenges and mixed technical indicators. The strong earnings call performance is a key positive, but high leverage and cash flow issues pose risks.

Onity Group Business Overview & Revenue Model

Company Description

Onity Group (ONIT) is a leading provider of electronic locking solutions and security technologies primarily serving the hospitality, education, and commercial sectors. The company specializes in advanced locking systems, mobile access solutions, and integrated security management systems, enabling properties to enhance their operational efficiency and guest experience. With a focus on innovation and customer satisfaction, Onity offers a comprehensive range of products including electronic locks, keyless entry systems, and mobile access applications.

How the Company Makes Money

Onity generates revenue through the sale of its electronic locking solutions and security products, which are typically sold directly to hotels, educational institutions, and commercial enterprises. Key revenue streams include hardware sales from electronic locks and access control devices, software licensing for security management systems, and ongoing maintenance and support services. Additionally, Onity benefits from partnerships with hospitality management companies and technology integrators, which help expand its market reach and customer base. The company's focus on innovation, such as the development of mobile access solutions, also plays a significant role in driving revenue growth by meeting evolving customer demands for convenience and security.

Onity Group Financial Statement Overview

Summary

Onity Group's financial statements reflect challenges in profitability, leverage, and cash flow management. High debt levels and inconsistent profitability pose risks, despite some operational efficiencies.

Income Statement

Onity Group's income statement shows a mixed performance. The gross profit margin has been relatively stable, but the net profit margin is weak due to inconsistent net income, with a recent return to profitability. Revenue growth has been inconsistent, with a decline in the latest year. EBIT and EBITDA margins are moderate, indicating operational efficiency but also highlighting challenges in maintaining profitability.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio indicating significant reliance on debt financing. Return on equity is low, reflecting challenges in generating returns for shareholders. The equity ratio is weak, suggesting limited buffer against liabilities. Overall, the balance sheet indicates financial risk due to high debt levels.

Cash Flow

Cash flow analysis shows negative free cash flow growth, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is negative, highlighting operational cash challenges. Free cash flow to net income is also negative, suggesting difficulties in generating cash from operations. Overall, cash flow management appears strained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.07B	1.14B	999.50M	1.08B	976.80M
Gross Profit	569.10M	495.60M	584.50M	459.20M	521.00M	524.80M
EBITDA	237.40M	256.10M	238.80M	285.50M	235.80M	175.50M
Net Income	33.20M	33.90M	-63.70M	25.70M	18.10M	-40.20M
Balance Sheet
Total Assets	16.11B	16.44B	12.51B	12.40B	12.15B	10.65B
Cash, Cash Equivalents and Short-Term Investments	172.80M	184.80M	213.10M	274.20M	263.45M	357.26M
Total Debt	0.00	14.74B	10.93B	10.46B	10.47B	9.29B
Total Liabilities	15.56B	15.94B	12.11B	11.94B	11.67B	10.24B
Stockholders Equity	551.30M	492.90M	401.80M	456.70M	476.70M	415.37M
Cash Flow
Free Cash Flow	-853.50M	-807.00M	-111.80M	-31.70M	-1.30B	-16.30M
Operating Cash Flow	-735.40M	-573.80M	10.40M	173.20M	-468.40M	261.00M
Investing Cash Flow	1.51B	401.30M	-100.30M	-120.80M	-1.01B	-527.90M
Financing Cash Flow	-788.40M	182.90M	70.80M	-13.40M	1.38B	131.80M

Onity Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONIT, the sentiment is Neutral. The current price of 39.65 is above the 20-day moving average (MA) of 37.84, below the 50-day MA of 39.82, and above the 200-day MA of 36.78, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 55.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ONIT.

Onity Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNFCA	68 Neutral	$205.99M	9.06	6.65%	―	5.49%	4.30%
VEL	68 Neutral	$723.03M	8.58	16.05%	―	41.99%	27.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IOR	64 Neutral	$74.31M	17.31	3.36%	―	―	-30.69%
ONIT	56 Neutral	$319.39M	9.81	6.71%	―	-9.86%	112.66%
GHI	56 Neutral	$173.33M	38.85	1.99%	18.98%	-12.56%	-69.72%
CNF	54 Neutral	$34.36M	―	―	―	―	―

Onity Group Corporate Events

Onity Group Faces Client Non-Renewal, Plans Restructuring

On October 31, 2025, Onity Group Inc. announced that Rithm Capital Corp., one of its largest subservicing clients, will not renew its subservicing agreements, effective January 31, 2026. These agreements accounted for a significant portion of Onity’s servicing portfolio, including a large share of delinquent loans. Despite the expected restructuring obligation, Onity does not foresee a material financial impact for 2026, as it plans to replace the earnings with more profitable consumer and commercial relationships. In its third-quarter 2025 results, Onity reported a net income of $18 million and a 39% year-over-year increase in originations volume, highlighting strong performance and growth in its servicing and originations business.

The most recent analyst rating on (ONIT) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Onity Group stock, see the ONIT Stock Forecast page.

Onity Group Appoints Robert Welborn as New Director

On September 30, 2025, Onity Group Inc. announced the appointment of Robert S. Welborn as a director, effective October 1, 2025. The Board temporarily increased its size to eight directors to accommodate Mr. Welborn, who is recognized as an independent director under NYSE and SEC standards. Mr. Welborn, a marketing technology consultant, brings extensive experience from his previous roles at Meta Inc., General Motors, and USAA. He will serve on the Company’s Risk and Compliance Committee. Additionally, DeForest B. Soaries, Jr. will not stand for re-election at the 2026 annual shareholder meeting, and the Board will reduce its size to seven directors at that time. Onity expressed gratitude for Dr. Soaries’ 11 years of service, noting his departure is not due to any disagreements with the company.

The most recent analyst rating on (ONIT) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Onity Group stock, see the ONIT Stock Forecast page.