Onemain Holdings Intrinsic Value – Hedgeye Adds OneMain Holdings to Short Ideas List

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ONEMAIN ($NYSE:OMF): Hedgeye, a research and investment firm, recently added OneMain Holdings to its short ideas list. This makes OneMain the latest target for potential short selling by Hedgeye. OneMain Holdings is an American consumer finance company that specializes in personal loans, insurance, and other financial services.

It serves more than 4 million customers with its collection of products and services, including personal loans, auto loans, debt consolidation, insurance, and bill payment services. With its strong history and significant presence in the consumer finance industry, OneMain Holdings is a potential short for Hedgeye investors.

Market Price

The stock opened at $42.8 and closed at $43.0 by market close. The fund also argued that ONEMAIN HOLDINGS‘ high debt load and vulnerability to economic cycles would limit its potential upside. Hedgeye concluded that the stock may be headed for a decline in the near-term and recommended participants open short positions. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Onemain Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Onemain Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Onemain Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Onemain Holdings are shown below. More…

Analysis – Onemain Holdings Intrinsic Value

At GoodWhale, we recently conducted an analysis of ONEMAIN HOLDINGS‘s wellbeing. Our proprietary Valuation Line revealed that the fair value of ONEMAIN HOLDINGS shares is around $47.7. However, at the present moment, ONEMAIN HOLDINGS stock is trading at just $43.0, a price which is undervalued by as much as 9.8%. This indicates that it may be a good time for investors to purchase ONEMAIN HOLDINGS stock. More…

Peers

The company offers a wide range of products and services to meet the needs of its customers. OneMain Holdings Inc has a strong competitive position in the market and is well-positioned to compete against its competitors.

– Nicholas Financial Inc ($NASDAQ:NICK)

Nicholas Financial Inc is a specialty finance company that provides consumer and small business loans through a network of branches and independent loan brokers. The company has a market cap of 44.24M as of 2022. Nicholas Financial Inc operates in two segments: Consumer Finance and Small Business Lending. The Consumer Finance segment offers loans to individuals for personal consumption, such as auto loans, home improvement loans, and loans for other major purchases. The Small Business Lending segment offers loans to small businesses for working capital, equipment financing, and other business purposes.

– Geneva Finance Ltd ($NZSE:GFL)

Geneva Finance Ltd is a New Zealand-based company engaged in the provision of personal finance solutions. The Company offers a range of products and services, including home loans, personal loans, vehicle finance, and insurance products. It operates through a network of branches located across New Zealand.

– Zip Co Ltd ($ASX:ZIP)

Zip Co Ltd is an Australian financial technology company that offers buy now, pay later services. The company has a market capitalization of 875.04 million as of 2022 and a return on equity of -21.16%. Zip Co Ltd offers its services through a mobile app and a website. The company was founded in 2013 and is headquartered in Sydney, Australia.

Summary

OneMain Holdings is a consumer finance company that offers personal loans and other credit-related products and services. Its investment analysis involves assessing the current competitive landscape, macroeconomic environment, and company-specific risk factors.

Additionally, investors examine the company’s historical financial performance, management strategies, and future growth prospects. It is important to consider the risks associated with investing in OneMain, such as credit risk, liquidity risk, and market volatility. Furthermore, investors should consider OneMain’s higher debt levels in comparison to its peers when making their investment decisions. Ultimately, by researching OneMain’s financials, analyzing its operations, and understanding the risks involved, investors can make an informed decision about whether an investment in this company is right for them.