(ONIT) Onity - Ratings and Ratios
Mortgage, Servicing, Origination, Reverse, Forward
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 46.2% |
| Value at Risk 5%th | 65.9% |
| Relative Tail Risk | -13.24% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.84 |
| Alpha | 25.62 |
| CAGR/Max DD | 0.23 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.548 |
| Beta | 1.036 |
| Beta Downside | 1.270 |
| Drawdowns 3y | |
|---|---|
| Max DD | 41.06% |
| Mean DD | 17.93% |
| Median DD | 17.90% |
Description: ONIT Onity October 27, 2025
Onity Group Inc. (NYSE: ONIT) is a diversified mortgage finance firm that originates and services forward- and reserve-mortgage loans across the United States, the U.S. Virgin Islands, India, and the Philippines. The business is split between an Originations segment (conventional, government-insured, non-agency, reverse, multifamily, and small-commercial loans) and a Servicing segment (owned mortgage-servicing rights and sub-servicing). Its retail and correspondent channels operate under the PHH Mortgage and Liberty Reverse Mortgage brands, primarily serving other financial institutions.
The company, originally founded in 1988 as Ocwen Financial Corporation, rebranded to Onity Group Inc. in June 2024 and remains headquartered in West Palm Beach, Florida. It continues to leverage its legacy servicing platform while expanding its origination footprint in both traditional and reverse-mortgage markets.
Key quantitative signals (as of the most recent filings) include a loan portfolio of roughly $12 billion, a net interest margin of 2.1 % for FY 2023, and a delinquency rate of 1.8 %-both modestly better than the industry average of ~2.2 % during a period of rising rates. The firm’s earnings are highly sensitive to the Federal Reserve’s policy cycle: higher rates tend to compress margins on new originations but can boost servicing-related cash flows as borrowers refinance less frequently. Additionally, the reverse-mortgage segment benefits from the aging-baby-boomer demographic, which is projected to drive a 5-7 % annual growth in loan originations through 2028.
For a deeper, data-driven view of ONIT’s valuation dynamics, you may find it worthwhile to explore the analytics platform ValueRay, which aggregates peer-adjusted metrics and scenario modeling tools.
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (34.2m TTM) > 0 and > 6% of Revenue (6% = 67.6m TTM) |
| FCFTA -0.07 (>2.0%) and ΔFCFTA -5.10pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 7.66% (prev 927.9%; Δ -920.3pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.05 (>3.0%) and CFO -735.4m <= Net Income 34.2m (YES >=105%, WARN >=100%) |
| Net Debt (-172.8m) to EBITDA (229.9m) ratio: -0.75 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.34 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (8.72m) change vs 12m ago 8.22% (target <= -2.0% for YES) |
| Gross Margin 46.75% (prev 49.77%; Δ -3.02pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 7.68% (prev 8.40%; Δ -0.72pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.11 (EBITDA TTM 229.9m / Interest Expense TTM 202.7m) >= 6 (WARN >= 3) |
Altman Z'' 0.12
| (A) 0.01 = (Total Current Assets 340.2m - Total Current Liabilities 253.9m) / Total Assets 16.11b |
| (B) -0.00 = Retained Earnings (Balance) -55.3m / Total Assets 16.11b |
| (C) 0.02 = EBIT TTM 224.0m / Avg Total Assets 14.67b |
| (D) -0.00 = Book Value of Equity -53.8m / Total Liabilities 15.56b |
| Total Rating: 0.12 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 41.20
| 1. Piotroski 2.50pt |
| 2. FCF Yield -7.33% |
| 3. FCF Margin -97.13% |
| 4. Debt/Equity 26.73 |
| 5. Debt/Ebitda -0.75 |
| 6. ROIC - WACC (= 0.76)% |
| 7. RoE 6.56% |
| 8. Rev. Trend 36.54% |
| 9. EPS Trend 12.47% |
What is the price of ONIT shares?
Over the past week, the price has changed by -2.07%, over one month by +10.04%, over three months by +3.19% and over the past year by +32.05%.
Is ONIT a buy, sell or hold?
- Strong Buy: 3
- Buy: 1
- Hold: 0
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the ONIT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 55 | 26.1% |
| Analysts Target Price | 55 | 26.1% |
| ValueRay Target Price | 46.8 | 7.2% |
ONIT Fundamental Data Overview November 27, 2025
P/E Trailing = 13.4441
P/S = 0.3581
P/B = 0.7122
Beta = 1.651
Revenue TTM = 1.13b USD
EBIT TTM = 224.0m USD
EBITDA TTM = 229.9m USD
Long Term Debt = 14.33b USD (from longTermDebt, last quarter)
Short Term Debt = 55.9m USD (from shortLongTermDebt, last quarter)
Debt = 14.74b USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -172.8m USD (from netDebt column, last quarter)
Enterprise Value = 14.92b USD (358.6m + Debt 14.74b - CCE 172.8m)
Interest Coverage Ratio = 1.11 (Ebit TTM 224.0m / Interest Expense TTM 202.7m)
FCF Yield = -7.33% (FCF TTM -1.09b / Enterprise Value 14.92b)
FCF Margin = -97.13% (FCF TTM -1.09b / Revenue TTM 1.13b)
Net Margin = 3.04% (Net Income TTM 34.2m / Revenue TTM 1.13b)
Gross Margin = 46.75% ((Revenue TTM 1.13b - Cost of Revenue TTM 599.7m) / Revenue TTM)
Gross Margin QoQ = 49.10% (prev 46.36%)
Tobins Q-Ratio = 0.93 (Enterprise Value 14.92b / Total Assets 16.11b)
Interest Expense / Debt = 0.26% (Interest Expense 37.9m / Debt 14.74b)
Taxrate = 19.05% (4.40m / 23.1m)
NOPAT = 181.3m (EBIT 224.0m * (1 - 19.05%))
Current Ratio = 1.34 (Total Current Assets 340.2m / Total Current Liabilities 253.9m)
Debt / Equity = 26.73 (Debt 14.74b / totalStockholderEquity, last quarter 551.3m)
Debt / EBITDA = -0.75 (Net Debt -172.8m / EBITDA 229.9m)
Debt / FCF = 0.16 (negative FCF - burning cash) (Net Debt -172.8m / FCF TTM -1.09b)
Total Stockholder Equity = 521.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.21% (Net Income 34.2m / Total Assets 16.11b)
RoE = 6.56% (Net Income TTM 34.2m / Total Stockholder Equity 521.5m)
RoCE = 1.51% (EBIT 224.0m / Capital Employed (Equity 521.5m + L.T.Debt 14.33b))
RoIC = 1.20% (NOPAT 181.3m / Invested Capital 15.13b)
WACC = 0.44% (E(358.6m)/V(15.10b) * Re(9.83%) + D(14.74b)/V(15.10b) * Rd(0.26%) * (1-Tc(0.19)))
Discount Rate = 9.83% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 6.51%
Fair Price DCF = unknown (Cash Flow -1.09b)
EPS Correlation: 12.47 | EPS CAGR: 5.38% | SUE: 0.04 | # QB: 0
Revenue Correlation: 36.54 | Revenue CAGR: 1.17% | SUE: 3.33 | # QB: 1
EPS next Quarter (2026-03-31): EPS=2.64 | Chg30d=+0.155 | Revisions Net=-1 | Analysts=1
EPS next Year (2026-12-31): EPS=10.66 | Chg30d=+0.235 | Revisions Net=-1 | Growth EPS=+9.9% | Growth Revenue=+13.5%
Additional Sources for ONIT Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle