Stock fact sheet · data as of
Onity Group Inc. (ONIT): fair value, margin of safety and Wheel Score
Financial Services · Financial - Mortgages · United States · Value
Is ONIT undervalued?
ONIT has a margin of safety of 96%: the stock closed at 26.67 on 16 Oct 2026 against a GLS average fair value of 636.13. 6 of the 6 valuation models that produced a number sit above the price. Our screens 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 1,054.69. 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.
The nightly engine files ONIT under Value: positive earnings at a P/E of 18 or less.
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 | 1,054.69 | +3855% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 171.64 | +544% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 958.85 | +3495% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 419.08 | +1471% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1,026.24 | +3748% | 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 | +598% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -345.01 | -1394% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 50.00 | +87% | 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 Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.1 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
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 | 5.1 / 10 | ROE | 30.2% |
| Debt / equity | 24.17 | ROA | 1.2% |
| Free-cash-flow yield | -1047.1% | Payout ratio | 3% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 62: Fair
ONIT scores 62 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 25/25, Health 11/20, Moat 8/15, Premium 12/20, Stability 6/20. Stability (6/20) is where the points are missing.
Implied volatility is 94% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (12 of 20) because volatility this high usually comes with a reason. Chain open interest is 6,640 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 156k shares a day on a market cap of $223M, 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 gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 96% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 8 / 15 | moat 5.1/10 | |
| Premium | 12 / 20 | implied volatility 94% | |
| Stability | 6 / 20 | 156k shares/day, $223M cap, beta 1.49 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
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 | 10.76 | - | - | 37Weak | $143M |
| LDI loanDepot, Inc. | 0.5670 | - | - | 32Weak | $132M |
| GHI Greystone Housing Impact Investors LP | 4.95 | 1,466.69 | +100% | 45Weak | $117M |
| VEL Velocity Financial, Inc. | 14.54 | 93.02 | +84% | 73Good | $574M |
| IOR Income Opportunity Realty Investors, Inc. | 18.00 | 11.26 | -60% | 17No options | $73M |
| WD Walker & Dunlop, Inc. | 32.05 | 44.33 | +28% | 75Good | $1.1B |
| UWMC UWM Holdings Corporation | 1.01 | 5.89 | +83% | 45Weak | $1.5B |
| FMCCH Freddie Mac 5.1 % Non-Cum Pfd | 9.30 | 192.48 | +95% | 39No options | $1.8B |
| FMCCK Federal Home Loan Mortgage Corporation | 9.74 | 195.99 | +95% | 39No options | $1.9B |
| FMCCN Federal Home Loan Mortgage Corporation | 9.00 | 190.09 | +95% | 39No options | $1.9B |
| FMCCG Federal Home Loan Mortgage Corporation | 8.99 | 190.01 | +95% | 39No options | $1.9B |
| FMCKI Federal Home Loan Mortgage Corporation | 5.79 | 164.52 | +96% | 39No options | $1.9B |
⚖ 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 26.67 the stock is 96% below the average fair value of 636.13 (data as of 16 Oct 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 62 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ONIT?
636.13 per share as of 16 Oct 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), 20 days from the data date of 16 Oct 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 114 listed contracts with 6,640 open interest across all expiries and implied volatility of 94% 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.