Assessing OneMain Holdings: Insights From 8 Financial Analysts

8 analysts have shared their evaluations of OneMain Holdings OMF during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $60.62, with a high estimate of $65.00 and a low estimate of $57.00. Marking an increase of 1.52%, the current average surpasses the previous average price target of $59.71.

Investigating Analyst Ratings: An Elaborate Study

An in-depth analysis of recent analyst actions unveils how financial experts perceive OneMain Holdings. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to OneMain Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of OneMain Holdings compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of OneMain Holdings's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into OneMain Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on OneMain Holdings analyst ratings.

Unveiling the Story Behind OneMain Holdings

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.

OneMain Holdings's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining OneMain Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.06% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: OneMain Holdings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 10.61%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): OneMain Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.94%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.49%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: OneMain Holdings's debt-to-equity ratio surpasses industry norms, standing at 6.72. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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