ONIT

Onity Group

Fundamental data last updated:April 13, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Financial Services

industry

Mortgage Finance

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Onity Group operates in mortgage servicing and related financial services, generating revenue primarily from servicing mortgage loans and managing portfolios for investors. The core cash engine is servicing fees tied to outstanding loan balances, along with ancillary income from modification, resolution, and transaction services. Scale matters in this business: large servicing portfolios create operating leverage, helping sustain margins like the current 30.20%. Its moat is operational rather than brand-driven — efficiency in compliance, data management, and cost control determines whether it converts servicing volume into durable cash flow.

 


Analyze ONIT on TradingView

VALUATION

P/E

2

Market Cap ($M USD)

$363

Forward P/E

4.3

PEG

-

PRICE TO SALES

0.3

PRICE TO BOOK

0.6

EV / EBITDA

64.7

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$23.07

Next Year EPS Growth Estimate

$9.87

Next Year Revenue Growth Estimate

9.90%

Return on Equity (ROE)

30.20%

FREE CASH FLOW

Operating Margin

19.30%

Debt-to-Equity

24.2

Piotroski F-Score

4

Altman Z-Score

1.1

Return on Invested Capital (ROIC)

1.20%

Current Ratio

51.3

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze ONIT on TradingView

Gainseekers Quantitative Analysis

Summary

At 2x trailing earnings and 4.3x forward earnings, the market is pricing ONIT like a distressed asset rather than a going concern. A 0.6x price-to-book and 0.3x price-to-sales ratio reinforce the deep value signal, but the 1.1 Altman Z-Score screams balance sheet fragility and potential distress risk. The spread between a 64.7 EPS and a forward estimate of 23.07 implies a steep normalization in earnings power, which explains the compressed multiple. This is a statistically cheap stock with real solvency risk embedded in the valuation — the market is not asleep; it is demanding a distress premium.

AI Exposure / Tech Reliance

As a Mortgage Finance company, ONIT operates in a data-heavy, process-driven environment where AI can materially enhance underwriting, servicing automation, and loss mitigation analytics. Firms that successfully integrate AI into servicing operations can structurally reduce costs and defend operating margins like the current 30.20%. However, the industry’s exposure to rate cycles and regulatory friction means technology is an efficiency lever, not a growth panacea.

The Bull Case

A deep value investor sees immediate asymmetry: 0.6x book value, 0.3x sales, and a 2x P/E with a still-profitable 30.20% operating margin. Return on Equity at 9.90% shows the firm is generating shareholder returns despite a tough mortgage backdrop, and a Piotroski F-Score of 4 signals operational stability rather than collapse. Debt/Equity at 19.30% is not extreme for a financial firm, and a 51.3 current ratio indicates significant short-term liquidity coverage. If earnings merely stabilize near the forward EPS of 23.07, the 4.3 forward multiple leaves substantial rerating potential without heroic growth assumptions.

The Bear Case

The red flags are serious. An Altman Z-Score of 1.1 places the company in distress territory, and the dramatic drop from 64.7 EPS to a 23.07 forward estimate suggests earnings volatility and possibly cyclical or non-recurring drivers. ROIC at just 1.20% is weak relative to the 9.90% ROE, implying limited true capital efficiency and potential balance sheet leverage effects. The absence of a PEG ratio, dividend support, and short interest data removes visibility, while a 24.2 TTM Yield without a listed dividend per share raises sustainability questions; this is a stock priced cheaply because its earnings base may not be durable.

Market Sentiment & Smart Money

Short Interest %

1.70%

Analyst Consensus

1

Average Analyst Price Target

$60.00

Institutional Ownership %

60.00%

1-Year Beta

1.11

Insider Buying % (6 Mo)

18.80%%

Distance to 52-Week High

78.90%

Distance to 52-Week Low

155.40%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.