Assessing OneMain Holdings: Insights From 5 Financial Analysts

In the preceding three months, 5 analysts have released ratings for OneMain Holdings OMF, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $57.2, a high estimate of $60.00, and a low estimate of $51.00. A decline of 0.69% from the prior average price target is evident in the current average.

Interpreting Analyst Ratings: A Closer Look

The standing of OneMain Holdings among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to OneMain Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of OneMain Holdings compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of OneMain Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into OneMain Holdings's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on OneMain Holdings analyst ratings.

Delving into OneMain Holdings's Background

OneMain Holdings Inc is engaged in nonprime consumer finance companies in the United States and is one of only a few companies in the consumer installment lending industry. It formed after a transaction brought together two branch-based consumer finance companies with complementary strategies and locations. Its services include providing personal loan products, offering credit and noncredit insurance, servicing loans, pursuing strategic acquisitions and dispositions of assets and businesses, and on occasion, establishing joint ventures or forming strategic alliances. The company's one reportable segment is consumer and insurance. In addition to hundreds of branches, the company also has an online business. The main source of revenue is net interest income.

Financial Insights: OneMain Holdings

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: OneMain Holdings displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 4.73%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: OneMain Holdings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 6.41%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): OneMain Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.23%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): OneMain Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.29%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 6.56, OneMain Holdings faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.