Onity Group Inc (ONIT) Stock Analysis
Verdict: WATCH (do not buy)
Severe earnings volatility and -$1.12B FCF outweigh low P/B valuation until rate-driven originations stabilize.
Investment score: 41/100
Analysis as of
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Onity Group Inc opportunities and risks
What speaks for ONIT
- Deep asset-level discount at 0.44x P/B
What speaks against ONIT
- High balance sheet debt leverage and severe negative cash flow
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ONIT | 2.0x | 0.2x | 32.0x | 73.3% | 11.8% | -810.2% |
| UWMC | n/a | 0.6x | 21.7x | 85.3% | -1.2% | -264.0% |
| WD | 33.6x | 1.1x | 9.9x | 63.5% | 3.2% | -94.7% |
| VEL | 6.0x | 0.9x | 15.7x | 78.9% | 15.4% | 3.5% |
| WSBF | 12.1x | 2.3x | 35.4x | 65.4% | 18.6% | 11.4% |
| LDI | n/a | 0.2x | 27.3x | 90.5% | -4.7% | -117.1% |
| Peer median | 6.0x | 0.9x | 21.7x | 78.9% | 3.2% | -94.7% |
Frequently asked questions about Onity Group Inc (ONIT)
Is ONIT stock a good investment?
The TradeMates model rates Onity Group Inc as WATCH (do not buy) with an investment score of 41/100. Severe earnings volatility and -$1.12B FCF outweigh low P/B valuation until rate-driven originations stabilize. This is algorithmic model output, not personal investment advice.
Is ONIT stock a buy?
The TradeMates model verdict for ONIT is WATCH (do not buy) with an investment score of 41/100. Treat this as a model signal to review, not a personal buy recommendation.