Stock fact sheet · data as of
Onity Group Inc. (ONIT): fair value, margin of safety and Wheel Score
Ticker symbol ONIT · Financial Services · Financial - Mortgages · United States · Value
Is ONIT undervalued?
ONIT has a margin of safety of 95%: the stock closed at 30.70 on 5 Nov 2026 against a GLS average fair value of 653.60. 6 of the 6 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 6 models disagree widely: Graham Number gives 171.64 while DCF gives 1,159.51. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, ONIT is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 95, growth score 54, out of 100).
Nine valuation models for ONIT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 1,159.51 | +3677% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 171.64 | +459% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 958.85 | +3023% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 419.08 | +1265% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1,026.24 | +3243% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 186.26 | +507% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -345.01 | -1224% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 50.00 | +63% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - ONIT passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 0.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 1.2%, ROE 30.2%, ROA 1.2% - with debt at 24.17 times equity and negative free cash flow. Debt of 24.17 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
Onity Group Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Servicing 83%, Originations 17% (quarter Q2 FY2026).
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 1.2% |
|---|---|---|---|
| GLS Moat | 0.9 / 10 | ROE | 30.2% |
| Debt / equity | 24.17 | ROA | 1.2% |
| Free-cash-flow yield | -909.6% | Payout ratio | 3% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 36: Weak
ONIT scores 36 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 8, big enough - market cap $256M (under $1.0B), and the parts are thin too - value strong, premium strong, moat weak, health fair, red flags weak, option trading weak, stability weak. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 69% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is 4,189 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 98k shares a day on a market cap of $256M, with a beta of 1.49 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $256M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 95% below fair value | |
| Premium | Strong | implied volatility 69% | |
| Moat | Weak | moat 0.9/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Weak | Red Flags score 62/100 | |
| Option trading | Weak | 156 contracts a day, 4,189 open interest | |
| Stability | Weak | beta 1.49, $256M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Onity Group Inc. reports earnings on 5 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Mortgages
The 12 companies below are the closest to Onity Group Inc. by market cap within the Financial - Mortgages industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BETR Better Home & Finance Holding Company | 20.19 | - | - | 11Weak | $268M |
| LDI loanDepot, Inc. | 0.6793 | 0.1562 | -335% | 4Weak | $158M |
| GHI Greystone Housing Impact Investors LP | 4.72 | 12.99 | +64% | 34Weak | $111M |
| VEL Velocity Financial, Inc. | 16.77 | 92.04 | +82% | 51Fair | $662M |
| IOR Income Opportunity Realty Investors, Inc. | 18.52 | 11.45 | -62% | 14No options | $75M |
| WD Walker & Dunlop, Inc. | 38.34 | 44.20 | +13% | 39Weak | $1.3B |
| FMCKO Federal Home Loan Mortgage Corporation | 5.37 | 164.90 | +97% | 33No options | $2.2B |
| FMCKP Freddie Mac 5.7 % Non-Cum Pfd | 10.01 | 193.43 | +95% | 27No options | $2.2B |
| FMCKJ Federal Home Loan Mortgage Corporation | 6.80 | 173.69 | +96% | 34No options | $2.4B |
| FREGP Federal Home Loan Mortgage Corporation | 10.00 | 193.37 | +95% | 34No options | $2.4B |
| FMCKL Federal Home Loan Mortgage Corporation | 5.79 | 167.49 | +97% | 34No options | $2.4B |
| FMCKN Federal Home Loan Mortgage Corporation | 5.59 | 166.26 | +97% | 34No options | $2.4B |
⚖ Compare ONIT with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ONIT
Is ONIT undervalued right now?
By the GLS models, yes: at 30.70 the stock is 95% below the average fair value of 653.60 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ONIT and what does it mean?
ONIT scores 36 out of 100 (Weak) - it fails Wheel Trade Filters 4, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for ONIT?
653.60 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Onity Group Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does ONIT have listed options, and how liquid are they?
Yes. The nightly snapshot found 42 listed contracts with 4,189 open interest across all expiries and implied volatility of 69% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.