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1. Company Snapshot

1.a. Company Description

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses.The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured.The company also offers credit cards and insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans.


It operates through a network of approximately 1,400 branch offices in 44 states in the United States, as well as through its website onemainfinancial.com.The company was formerly known as Springleaf Holdings, Inc.and changed its name to OneMain Holdings, Inc.


in November 2015.OneMain Holdings, Inc.was founded in 1912 and is based in Evansville, Indiana.

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1.b. Last Insights on OMF

OneMain Holdings' recent performance was driven by strong Q3 earnings, with diluted EPS of $1.67 and C&I adjusted diluted EPS of $1.90. The company's managed receivables reached $25.9 billion. A 1% quarterly dividend increase to $1.05 per share and a $1.0 billion share repurchase program were also announced. The company's disciplined loan management and stable yields have positioned it well for future rate cycles. Its valuation remains attractive, with a fair level based on Price/Free Cash Flow and DCF Dividend Discount Model.

1.c. Company Highlights

2. OneMain Financial's Q3 2025 Earnings: A Strong Performance

OneMain Financial reported a robust third quarter, with GAAP net income reaching $199 million, or $1.67 per diluted share, up 27% year-over-year. The company's C&I adjusted earnings per share stood at $1.90, beating analyst estimates of $1.58. Revenue growth was also impressive, driven by the expanded use of granular data and analytics, combined with continued innovation in products and customer experience. Originations increased 5% year-over-year, contributing to the strong financial performance.

Publication Date: Nov -06

📋 Highlights
  • Capital Generation Growth: Capital generation reached $272 million, up 29% year-over-year.
  • C&I Adjusted Earnings Surge: C&I adjusted earnings hit $1.90 per share, a 51% increase from the prior year.
  • Credit Delinquency Improvement: 30-plus delinquency rate fell to 5.41%, down 16 basis points year-over-year.
  • Funding Program Execution: Raised $1.6 billion across two bonds, reducing secured funding mix to 54%.
  • Dividend Increase: Annual dividend raised to $4.20 per share, yielding 7% at current share price.

Credit Performance

The company's credit performance showed significant improvement, with 30-plus delinquency on September 30, excluding Foursight, decreasing by 16 basis points to 5.41% compared to last year. Consumer loan net charge-offs, excluding credit cards, also declined by 66 basis points to 6.7% in the quarter. The credit card business demonstrated a notable improvement, with net charge-offs in the card portfolio decreasing sequentially by 288 basis points to 16.7%. Recoveries remained strong, amounting to $88 million, up 12% year-over-year.

Funding and Balance Sheet

OneMain Financial continued to execute on its funding program, raising $1.6 billion across two bonds in the quarter. The company's strong balance sheet and sustained access to diversified capital sources provide a distinct competitive advantage. The net leverage at the end of the third quarter remained flat at 5.5x. The company also signed a $2.4 billion whole loan sale forward flow agreement with a long-term partner, which will increase and extend its current loan sale commitment.

Guidance and Outlook

The company narrowed its full-year 2025 guidance to the higher end of the range, with managed receivables growth expected to be in the range of 6% to 8%. Total revenue growth is expected to be approximately 9%, above the prior guidance range of 6% to 8%. C&I net charge-offs are expected to come in between 7.5% and 7.8%. Analysts estimate next year's revenue growth at 7.8%. The company's guidance suggests a continued strong performance in the coming quarters.

Valuation

OneMain Financial's current valuation metrics indicate a relatively attractive dividend yield of 6.84%. The Price-to-Tangible Book Value is not directly available, but the Price-to-Book Ratio stands at 2.15, suggesting a moderate valuation. The company's Return on Equity (ROE) is 21.4%, indicating a strong profitability profile. With a Forward P/E Ratio of 10.31, the stock appears to be reasonably valued, considering the company's growth prospects and dividend yield.

3. NewsRoom

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Encore Capital Group (NASDAQ:ECPG) & OneMain (NYSE:OMF) Head-To-Head Review

Dec -04

Source: defenseworld.net

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Edgestream Partners L.P. Decreases Stake in OneMain Holdings, Inc. $OMF

Dec -03

Source: defenseworld.net

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OneMain Holdings: Credit Improvement Should Continue Into 2026 (Upgrade)

Dec -01

Source: seekingalpha.com

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Creative Planning Has $3.12 Million Stock Position in OneMain Holdings, Inc. $OMF

Nov -24

Source: defenseworld.net

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Steven Cress' 6 Picks: 3 Dividend Income, 3 AI Growth Stocks

Nov -23

Source: seekingalpha.com

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OneMain Holdings Gains 17.8% in 6 Months: How to Play The Stock Now?

Nov -20

Source: zacks.com

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Glenn Greenberg's Strategic Moves: Elevance Health Inc. Takes Center Stage with a 5.43% Portfolio Impact

Nov -14

Source: gurufocus.com

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Leon Cooperman's Strategic Moves: Fiserv Inc. Exits with a -2.36% Impact

Nov -14

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.03%)

6. Segments

Consumer and Insurance

Expected Growth: 7.03%

OneMain Holdings, Inc.'s 7.03% growth in Consumer and Insurance segments is driven by increasing demand for personal loans, expansion of online lending platforms, and strategic partnerships. Additionally, favorable regulatory environments, rising consumer spending, and effective risk management practices contribute to the growth.

Other

Expected Growth: 7.03%

OneMain Holdings' 7.03% growth is driven by increasing demand for personal loans, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved operational efficiency, and effective risk management have contributed to its growth. Furthermore, the rise of fintech and online lending platforms has created opportunities for OneMain to diversify its product offerings and reach a broader customer base.

Adjustment

Expected Growth: 7.4%

OneMain Holdings, Inc.'s 7.4% growth is driven by increasing consumer lending demand, expansion of online lending platforms, and strategic acquisitions. Additionally, the company's focus on subprime lending and diversified product offerings contribute to its growth momentum. Furthermore, effective cost management and operational efficiencies also support the company's growth trajectory.

7. Detailed Products

Personal Loans

OneMain Holdings, Inc. offers personal loans to individuals for various purposes such as debt consolidation, home improvement, and unexpected expenses.

Auto Loans

OneMain Holdings, Inc. provides auto loans to individuals for purchasing new or used vehicles.

Insurance Products

OneMain Holdings, Inc. offers various insurance products, including life insurance, accidental death insurance, and involuntary unemployment insurance.

Credit Cards

OneMain Holdings, Inc. issues credit cards to individuals for everyday purchases and cash advances.

8. OneMain Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

OneMain Holdings, Inc. operates in the financial services industry, which has a moderate threat of substitutes. While there are alternative financial institutions, OneMain's diversified product offerings and strong brand recognition mitigate the threat of substitutes.

Bargaining Power Of Customers

OneMain Holdings, Inc. has a large customer base, but individual customers have limited bargaining power due to the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Suppliers

OneMain Holdings, Inc. has a diversified supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory hurdles and significant capital requirements, making it difficult for new entrants to compete with established players like OneMain Holdings, Inc.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. OneMain Holdings, Inc. faces intense rivalry from other financial institutions, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.15%
Debt Cost 6.74%
Equity Weight 13.85%
Equity Cost 12.06%
WACC 7.48%
Leverage 621.88%

11. Quality Control: OneMain Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Synchrony

A-Score: 6.9/10

Value: 7.9

Growth: 7.8

Quality: 7.6

Yield: 4.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
OneMain Holdings

A-Score: 6.7/10

Value: 5.4

Growth: 5.4

Quality: 5.2

Yield: 10.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
FirstCash

A-Score: 6.5/10

Value: 4.3

Growth: 7.6

Quality: 8.4

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
SLM

A-Score: 6.2/10

Value: 7.0

Growth: 5.6

Quality: 6.8

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Western Union

A-Score: 5.8/10

Value: 7.4

Growth: 3.2

Quality: 6.1

Yield: 10.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Ally Financial

A-Score: 5.7/10

Value: 7.1

Growth: 5.2

Quality: 3.3

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.99$

Current Price

64.99$

Potential

-0.00%

Expected Cash-Flows