Onity Group Inc. (ONIT) AI Stock Analysis

Onity Group Inc. specializes in originating and servicing mortgage loans across the United States, the United States Virgin Islands, India, and the Philippines. The company operates through two main segments: Servicing and Originations. Its Servicing segment provides commercial forward mortgage loan servicing, reverse mortgage servicing, special servicing, and asset management for loan owners and foreclosed properties. In its Originations segment, Onity Group originates and purchases conventional and government-insured residential forward and reverse mortgage loans through correspondent lending, broker networks, and retail channels under brand names including PHH Mortgage and Liberty Reverse Mortgage.

Over the period from FY2020 to FY2025, revenue increased at a 5-year CAGR of 1.8%. Annual revenue was $1.08B in FY2021, $999.5M in FY2022, $1.14B in FY2023, and $1.07B in FY2024. In FY2025, revenue was $1.07B, down 0.2%, while gross margin rose to 94.5% and operating margin reached 55.3%, generating net income of $189.5M and diluted EPS of $20.71. Over the trailing twelve months, revenue totaled $1.15B with an operating margin of 50.9% and a profit margin of 12.3%. In the latest quarter ended June 30, 2026, quarterly revenue increased 14.7% year-over-year, while quarterly earnings fell 70.4%.

As of June 30, 2026, Onity Group held $196.6M in cash and short-term investments and $10.84B in total debt, bringing net debt to $10.64B. Shareholders' equity stood at $659.8M, representing a debt-to-equity ratio of 16.43 and a current ratio of 12.60. Total assets were $12.35B. In FY2025, operating cash flow was -$748.0M and free cash flow was -$1.12B. Capital expenditures totaled $376.3M, while cash used for share buybacks and dividends paid was $3.5M and $4.2M, respectively.

At the closing price of $25.59 on October 16, 2026, Onity Group has a market capitalization of $213.8M and an enterprise value of $10.77B. The stock trades at a trailing P/E of 1.6x and a forward P/E of 13.1x, compared to medians of 12.1x and 10.8x for its US-listed Financial Services peers. Its price-to-sales ratio is 0.2x versus the peer median of 3.2x, while EV/EBITDA is 54.3x against the peer median of 11.7x. Over the past year, ONIT returned -30.0%, trailing the S&P 500 SPY return of 16.8%.

Wall Street coverage consists of 2 analysts, with 1 Strong Buy and 1 Buy rating. The mean price target is $50.00, representing 95.4% upside compared to the last close of $25.59. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.16B and EPS of $5.00, reflecting an EPS decrease of 78.9%. For the next fiscal year, analysts forecast revenue of $1.20B and EPS of $7.07. Onity Group beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Onity Group Inc. (ONIT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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