(ONIT) Onity - Overview
Sector: Financial Services | Industry: Mortgage Finance | Exchange: NYSE (USA) | Market Cap: 290m USD | Total Return: -8.7% in 12m
Avg Turnover: 2.74M
Qual. Beats: 0
Rev. Trend: 44.8%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 1.7 → Forward 13.1
Choppy Below Avwap Earnings
Tailwinds
Shakeout
Onity Group Inc. (NYSE: ONIT), formerly Ocwen Financial Corporation, is a diversified financial services firm specializing in the origination and servicing of residential forward and reverse mortgage loans. Operating through its primary brands, PHH Mortgage and Liberty Reverse Mortgage, the company manages a portfolio that includes mortgage servicing rights (MSRs), subservicing products, and reinsurance operations across the United States and international markets.
The company’s business model relies on a multi-channel acquisition strategy, sourcing loans through correspondent lending, broker partnerships, and direct retail channels. In the mortgage finance sector, firms often utilize MSRs as a hedge against fluctuating interest rates, as the value of servicing contracts typically increases when refinancing activity slows.
Investors can evaluate the company’s valuation metrics and historical performance trends by consulting ValueRay. Onity Group maintains a global operational footprint with administrative and processing hubs located in Florida, India, and the Philippines to support its servicing segments.
- Mortgage servicing rights valuation fluctuates based on prevailing interest rate volatility
- Subservicing contract growth drives recurring revenue stability and scalability
- Refinancing volume shifts impact mortgage origination margins and loan pull-through
- Regulatory scrutiny on mortgage servicing practices increases operational and compliance costs
- Reverse mortgage market penetration through Liberty brand influences long-term asset growth
| Net Income: 175.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.13 > 0.02 and ΔFCF/TA -8.33 > 1.0 |
| NWC/Revenue: 1.13k% < 20% (prev 1.19k%; Δ -59.63% < -1%) |
| CFO/TA -0.12 > 3% & CFO -2.19b > Net Income 175.0m |
| Net Debt (15.7b) to EBITDA (319.5m): 49.22 < 3 |
| Current Ratio: 51.50 > 1.5 & < 3 |
| Outstanding Shares: last quarter (8.98m) vs 12m ago 6.46% < -2% |
| Gross Margin: 66.60% > 18% (prev 0.47%; Δ 6.61k% > 0.5%) |
| Asset Turnover: 7.05% > 50% (prev 6.70%; Δ 0.36% > 0%) |
| Interest Coverage Ratio: 0.75 > 6 (EBITDA TTM 319.5m / Interest Expense TTM 418.1m) |
| A: 0.77 (Total Current Assets 13.9b - Total Current Liabilities 269.4m) / Total Assets 17.7b |
| B: 0.00 (Retained Earnings 78.5m / Total Assets 17.7b) |
| C: 0.02 (EBIT TTM 314.2m / Avg Total Assets 17.0b) |
| D: 0.00 (Book Value of Equity 78.5m / Total Liabilities 17.1b) |
| Altman-Z'' = 5.18 = AAA |
| DSRI: 0.96 (Receivables 13.1b/12.4b, Revenue 1.20b/1.09b) |
| GMI: 0.71 (GM 66.60% / 47.17%) |
| AQI: 1.17 (AQ_t 0.22 / AQ_t-1 0.19) |
| SGI: 1.10 (Revenue 1.20b / 1.09b) |
| TATA: 0.13 (NI 175.0m - CFO -2.19b) / TA 17.7b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 34.54 with a total of 40,844 shares traded.
Over the past week, the price has changed by -1.54%,
over one month by -24.59%,
over three months by -17.59% and
over the past year by -8.72%.
Onity has received a consensus analysts rating of 4.75. Therefore, it is recommended to buy ONIT.
- StrongBuy: 3
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 60 | 73.7% |
P/E Trailing = 1.7447
P/E Forward = 13.0719
P/S = 0.2608
P/B = 0.4605
P/EG = 0.6222
Revenue TTM = 1.20b USD
EBIT TTM = 314.2m USD
EBITDA TTM = 319.5m USD
Long Term Debt = 15.8b USD (from longTermDebt, last quarter)
Short Term Debt = 54.8m USD (from shortTermDebt, last quarter)
Debt = 15.9b USD (from shortLongTermDebtTotal, last quarter) + Leases 7.90m
Net Debt = 15.7b USD (calculated: Debt 15.9b - CCE 182.5m)
Enterprise Value = 16.0b USD (289.8m + Debt 15.9b - CCE 182.5m)
Interest Coverage Ratio = 0.75 (Ebit TTM 314.2m / Interest Expense TTM 418.1m)
EV/FCF = -7.03x (Enterprise Value 16.0b / FCF TTM -2.28b)
FCF Yield = -14.23% (FCF TTM -2.28b / Enterprise Value 16.0b)
FCF Margin = -190.0% (FCF TTM -2.28b / Revenue TTM 1.20b)
Net Margin = 14.60% (Net Income TTM 175.0m / Revenue TTM 1.20b)
Gross Margin = 66.60% ((Revenue TTM 1.20b - Cost of Revenue TTM 400.4m) / Revenue TTM)
Gross Margin QoQ = 76.55% (prev 93.47%)
Tobins Q-Ratio = 0.90 (Enterprise Value 16.0b / Total Assets 17.7b)
Interest Expense / Debt = 2.63% (Interest Expense 418.1m / Debt 15.9b)
Taxrate = 3.80% (300k / 7.90m)
NOPAT = 302.3m (EBIT 314.2m * (1 - 3.80%))
Current Ratio = 51.50 (Total Current Assets 13.9b / Total Current Liabilities 269.4m)
Debt / Equity = 25.28 (Debt 15.9b / totalStockholderEquity, last quarter 629.3m)
Debt / EBITDA = 49.22 (Net Debt 15.7b / EBITDA 319.5m)
Debt / FCF = -6.90 (negative FCF - burning cash) (Net Debt 15.7b / FCF TTM -2.28b)
Total Stockholder Equity = 572.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.03% (Net Income 175.0m / Total Assets 17.7b)
RoE = 30.56% (Net Income TTM 175.0m / Total Stockholder Equity 572.6m)
RoCE = 1.91% (EBIT 314.2m / Capital Employed (Equity 572.6m + L.T.Debt 15.8b))
RoIC = 1.73% (NOPAT 302.3m / Invested Capital 17.5b)
WACC = 2.65% (E(289.8m)/V(16.2b) * Re(9.29%) + D(15.9b)/V(16.2b) * Rd(2.63%) * (1-Tc(0.04)))
Discount Rate = 9.29% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.03 | Cagr: 5.37%
[DCF] Fair Price = unknown (Cash Flow -2.28b)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.59 | # QB: 0
Revenue Correlation: 44.81 | Revenue CAGR: 1.66% | SUE: 0.16 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.21 | Chg30d=+0.00% | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=2.23 | Chg30d=+0.00% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=8.84 | Chg30d=+0.00% | Revisions=N/A | GrowthEPS=-62.6% | GrowthRev=+10.6%
EPS next Year (2027-12-31): EPS=9.87 | Chg30d=+0.00% | Revisions=-20% | GrowthEPS=+11.7% | GrowthRev=+9.9%