(ONIT) Onity - Overview
Stock: Forward Mortgage, Reverse Mortgage, Mortgage Servicing, Loan Origination
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 45.3% |
| Relative Tail Risk | -13.5% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.28 |
| Alpha | -0.14 |
| Character TTM | |
|---|---|
| Beta | 0.988 |
| Beta Downside | 1.176 |
| Drawdowns 3y | |
|---|---|
| Max DD | 41.06% |
| CAGR/Max DD | 0.15 |
Description: ONIT Onity December 30, 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 into Servicing and Originations segments, offering owned mortgage servicing rights (MSRs), sub-servicing, conventional and government-insured loans, reverse mortgages, multi-family, residential forward, and small-commercial mortgages. Its loan-origination channels include correspondent lenders, brokers, and retail operations under the PHH Mortgage and Liberty Reverse Mortgage brands. The company, formerly Ocwen Financial, rebranded to Onity Group in June 2024 and is headquartered in West Palm Beach, Florida.
Key operating metrics that analysts watch include: (1) a servicing portfolio of roughly $30 billion in MSR assets, generating a net interest margin of about 1.8% in Q3 2024; (2) loan-origination volume of $7 billion in the most recent quarter, driven largely by rising demand for government-insured mortgages as rates stabilize; and (3) delinquency rates that remain below the industry average at 4.2% versus the 5.1% benchmark, reflecting the firm’s focus on credit-qualified borrowers. The sector’s performance is highly sensitive to Federal Reserve policy-each 25 bp shift in the benchmark rate can alter servicing cash-flow yields by roughly 5–7 bps-making interest-rate outlooks a primary driver of ONIT’s earnings volatility.
For a deeper quantitative assessment, you may find ValueRay’s platform useful for modeling ONIT’s exposure to rate-sensitive servicing cash flows.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 34.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.07 > 0.02 and ΔFCF/TA -5.10 > 1.0 |
| NWC/Revenue: 7.66% < 20% (prev 927.9%; Δ -920.3% < -1%) |
| CFO/TA -0.05 > 3% & CFO -735.4m > Net Income 34.2m |
| Net Debt (-172.8m) to EBITDA (229.9m): -0.75 < 3 |
| Current Ratio: 1.34 > 1.5 & < 3 |
| Outstanding Shares: last quarter (8.72m) vs 12m ago 8.22% < -2% |
| Gross Margin: 46.75% > 18% (prev 0.50%; Δ 4625 % > 0.5%) |
| Asset Turnover: 7.68% > 50% (prev 8.40%; Δ -0.72% > 0%) |
| Interest Coverage Ratio: 1.11 > 6 (EBITDA TTM 229.9m / Interest Expense TTM 202.7m) |
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 -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) |
| Altman-Z'' Score: 0.12 = B |
Beneish M -1.45
| DSRI: 0.02 (Receivables 167.4m/9.70b, Revenue 1.13b/1.11b) |
| GMI: 1.06 (GM 46.75% / 49.77%) |
| AQI: 4.83 (AQ_t 0.98 / AQ_t-1 0.20) |
| SGI: 1.01 (Revenue 1.13b / 1.11b) |
| TATA: 0.05 (NI 34.2m - CFO -735.4m) / TA 16.11b) |
| Beneish M-Score: -1.45 (Cap -4..+1) = D |
What is the price of ONIT shares?
Over the past week, the price has changed by -6.52%, over one month by -4.75%, over three months by +9.76% and over the past year by +7.37%.
Is ONIT a buy, sell or hold?
- StrongBuy: 3
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the ONIT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 55 | 30.1% |
| Analysts Target Price | 55 | 30.1% |
| ValueRay Target Price | 43.5 | 2.9% |
ONIT Fundamental Data Overview February 03, 2026
P/S = 0.3848
P/B = 0.8155
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 = 14.95b USD (385.3m + Debt 14.74b - CCE 172.8m)
Interest Coverage Ratio = 1.11 (Ebit TTM 224.0m / Interest Expense TTM 202.7m)
EV/FCF = -13.67x (Enterprise Value 14.95b / FCF TTM -1.09b)
FCF Yield = -7.32% (FCF TTM -1.09b / Enterprise Value 14.95b)
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 14.95b / 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 = 0.23% (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 = 0.45% (E(385.3m)/V(15.12b) * Re(9.55%) + D(14.74b)/V(15.12b) * Rd(0.26%) * (1-Tc(0.19)))
Discount Rate = 9.55% (= 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=2.60 | Chg30d=N/A | Revisions Net=-1 | Analysts=1
EPS next Year (2026-12-31): EPS=10.70 | Chg30d=+0.040 | Revisions Net=-1 | Growth EPS=+11.1% | Growth Revenue=+10.8%