Onity Group

ONIT

Financial - Mortgages · Financial Services

Price

$40.81

-0.69 (-1.66%)

Market Cap

$344.1M

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−8.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 9.4M (2021) → 8.6M (2025)

Onity Group Inc. is a residential mortgage company that helps homeowners manage their home loans. It primarily services mortgages, meaning it collects monthly payments from borrowers and handles tasks like escrow, insurance, and customer support on behalf of the banks and investors that own those loans. The company also originates new mortgages, helping people borrow money to buy or refinance homes.

Onity makes most of its money from servicing fees, which are small recurring fees earned on each loan it manages. It operates mainly in the United States and oversees a large portfolio of mortgage loans, giving it some scale advantages in a highly competitive and regulated industry. The company's main risk is interest rate sensitivity — when rates rise sharply, homeowners refinance less often, which can shrink the loan portfolio over time, while falling rates can trigger early payoffs that reduce future fee income.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-70.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

25.3%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~0 months

$183M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Onity Group has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

76.6%

Premium pricing power — 76.6% gross margin

Operating Margin

31.6%

Excellent — 31.6% operating margin

ROCE

0.6%

Weak — 0.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+10.1%

Steady sales growth (10.1% YoY)

EPS YoY

+582.1%

Earnings growing fast (582.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

-1251%

Weak — only -1251% of profit becomes cash

FCF Margin

-230.1%

Burning cash (-230.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

25.25

Heavy debt load (25.25)

Interest Cover

0.76x

Dangerous — barely covers interest (0.8x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

1.9x

Attractive valuation — P/E 1.9

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-6.2

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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