# Onity Group (ONIT.US)

Canonical: https://gigainvestors.com/s/ONIT

Analysis as of: 2026-10-16T07:30:55.153Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $26.67 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 6

- Operating margin variation: 1.06×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.16×

- FY2017: 0.08×

- FY2018: 0.04×

- FY2019: 0.21×

- FY2020: 0.02×

- FY2021: 0.21×

- FY2022: 0.28×

- FY2023: 0.21×

- FY2024: 0.25×

- FY2025: 0.55×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 1.4%

- ROIC, second-lowest year: 0.1%

- Typical minus recent gross margin: -3.8 pp

- Typical gross margin (annual median): 51.0%

- Recent gross margin (lower of latest and 3-year median): 54.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 12.3%

- ROIC including acquisitions, ten-year median: -1.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -2.7%

- FY2017: 1.0%

- FY2018: 0.4%

- FY2019: 1.8%

- FY2020: 0.1%

- FY2021: 1.4%

- FY2022: 2.0%

- FY2023: 1.3%

- FY2024: 1.4%

- FY2025: 3.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: -6.46×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.3B

- Net income, five-year total: $204M

- Return on incremental invested capital: 8.4%

- Working capital / revenue, annual change: 60.0 pp

- Working capital / revenue, change between three-year averages: 430.7 pp

- Working capital / revenue, final three-year average: 1125.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -44.37×

- FY2022: -6.40×

- FY2023: 2.69×

- FY2024: 0.13×

- FY2025: -0.95×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 0.4% vs 1.4%

- Per-share earnings: -24.17 to 4.19 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: -$278M

- Cumulative retained earnings: -$54M

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $28.36

- Per-share value, starting three-year median: -$24.17

- Per-share value, ending three-year median: $4.19

- Buybacks concentrated in cheaper years (correlation): -0.09

- Average buyback yield: 4.8%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.3B

- Cumulative net income, 10 years: -$377M

- ROIC, first three-year median: 0.4%

- ROIC, last three-year median: 1.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$24.17

- FY2017: -$15.10

- FY2018: -$7.94

- FY2019: -$15.86

- FY2020: -$4.59

- FY2021: $1.93

- FY2022: $2.86

- FY2023: -$8.34

- FY2024: $4.19

- FY2025: $21.94

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 5.8%

- Receivables to sales index (DSRI): 0.86×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -3.95×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 4.50×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.1%

- FY2017: -6.4%

- FY2018: -3.7%

- FY2019: -2.8%

- FY2020: -2.8%

- FY2021: 4.0%

- FY2022: -1.2%

- FY2023: -0.6%

- FY2024: 4.2%

- FY2025: 5.8%

## Holders

## Price story

Down 42% since Apr 2026 · sales +9.3%

Story as of 2026-10-16T09:59:19.966Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +9.3%; source https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm; observed 2026-02-17.

- FY2016: $1.4B 

- FY2017: $1.2B 

- FY2018: $1.1B 

- FY2019: $1.1B 

- FY2020: $961M 

- FY2021: $1.1B 

- FY2022: $954M 

- FY2023: $1.1B 

- FY2024: $976M 

- FY2025: $1.1B 

### Gross margin · FY2025

gross margin 94.5%; source https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm; observed 2026-02-17.

- FY2016: 31.1% 

- FY2017: 49.7% 

- FY2018: 51.2% 

- FY2019: 53.8% 

- FY2020: 54.6% 

- FY2021: 49.6% 

- FY2022: 48.1% 

- FY2023: 54.8% 

- FY2024: 50.8% 

- FY2025: 94.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in mortgage finance; annual sales are USD 1.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm#000162828026008625 (filed 2026-02-17); FY2025: revenue 1066700000; grossProfit 1007800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); ONIT.US: Onity Group Inc., a financial services company, originates and services forward and reserve mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. The company operates through the Servicing and Originations segments. The company offers owned mortgage servicing rights and subservicing products; conventional, government-insured, and non-agency mortgage loans, as well as reverse mortgage and multi-family loans; and residential forward mortgage and small commercial mortgage loans. It also originates and purchases conventional and government-insured residential forward and reverse mortgage loans through its correspondent lending arrangements, broker relationships, and retail channels. In addition, the company engages in reinsurance business. The company offers its services under the PHH Mortgage and Liberty Reverse Mortgage brands. It serves financial institutions. The company was formerly known as Ocwen Financial Corporation and changed its name to Onity Group Inc. in June 2024. Onity Group Inc. was founded in 1988 and is headquartered in West Palm Beach, Florida.

### Why customers stay

Margins ranged from 50.8% to 94.5% during 2023–25; it earns 1.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 54.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 50.8%.

- Source: https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 94.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,-0.02695238774185375],[2017,0.010339290219326632],[2018,0.004266668414343621],[2019,0.018041094554146025],[2020,0.0014103481243709468],[2021,0.013643846229077437],[2022,0.020225793677478163],[2023,0.01335837037921055],[2024,0.014253782319280874],[2025,0.0377391092879039]]; median 0.013501108304143992. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 10 years; bought back USD 3.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 0; upkeep 37700000; owner earnings 4500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,500000],[2025,4200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm (filed 2026-02-17); FY2025: cash repurchases 3500000 USD.

### Are managers owners

Insiders own 17.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); ONIT.US SharesStats.PercentInsiders = 17.746000000000002 percentage points; cache date 2026-10-05.

### What the price says

The price is 0.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Closing price 26.67 USD; reporting-to-trading FX 1; FY2025 annual sales per share 123.49911297604382; price multiple 0.21595296806037312. FY2025 cash earnings/share -20.867030070652678. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $64.05 per share

- 2016-11: $77.10 per share

- 2016-12: $80.85 per share

- 2017-01: $79.05 per share

- 2017-02: $66.15 per share

- 2017-03: $82.05 per share

- 2017-04: $34.35 per share

- 2017-05: $37.20 per share

- 2017-06: $40.35 per share

- 2017-07: $43.05 per share

- 2017-08: $43.95 per share

- 2017-09: $51.60 per share

- 2017-10: $52.35 per share

- 2017-11: $47.85 per share

- 2017-12: $46.95 per share

- 2018-01: $50.55 per share

- 2018-02: $54.60 per share

- 2018-03: $61.80 per share

- 2018-04: $60.90 per share

- 2018-05: $65.55 per share

- 2018-06: $59.40 per share

- 2018-07: $59.70 per share

- 2018-08: $62.70 per share

- 2018-09: $59.10 per share

- 2018-10: $52.50 per share

- 2018-11: $31.65 per share

- 2018-12: $20.10 per share

- 2019-01: $25.20 per share

- 2019-02: $32.10 per share

- 2019-03: $27.30 per share

- 2019-04: $25.35 per share

- 2019-05: $23.25 per share

- 2019-06: $31.05 per share

- 2019-07: $28.50 per share

- 2019-08: $26.85 per share

- 2019-09: $28.20 per share

- 2019-10: $25.35 per share

- 2019-11: $23.40 per share

- 2019-12: $20.55 per share

- 2020-01: $18.45 per share

- 2020-02: $18.75 per share

- 2020-03: $7.50 per share

- 2020-04: $6.30 per share

- 2020-05: $11.10 per share

- 2020-06: $9.90 per share

- 2020-07: $17.85 per share

- 2020-08: $19.02 per share

- 2020-09: $21.12 per share

- 2020-10: $23.10 per share

- 2020-11: $23.60 per share

- 2020-12: $28.91 per share

- 2021-01: $24.46 per share

- 2021-02: $27.97 per share

- 2021-03: $28.43 per share

- 2021-04: $31.51 per share

- 2021-05: $32.79 per share

- 2021-06: $30.98 per share

- 2021-07: $26.15 per share

- 2021-08: $28.30 per share

- 2021-09: $28.13 per share

- 2021-10: $31.41 per share

- 2021-11: $31.88 per share

- 2021-12: $39.97 per share

- 2022-01: $36.68 per share

- 2022-02: $28.63 per share

- 2022-03: $23.76 per share

- 2022-04: $20.80 per share

- 2022-05: $27.98 per share

- 2022-06: $27.40 per share

- 2022-07: $34.30 per share

- 2022-08: $26.18 per share

- 2022-09: $23.27 per share

- 2022-10: $31.24 per share

- 2022-11: $33.74 per share

- 2022-12: $30.58 per share

- 2023-01: $36.00 per share

- 2023-02: $32.66 per share

- 2023-03: $27.12 per share

- 2023-04: $28.80 per share

- 2023-05: $26.25 per share

- 2023-06: $29.97 per share

- 2023-07: $33.76 per share

- 2023-08: $30.26 per share

- 2023-09: $25.88 per share

- 2023-10: $24.04 per share

- 2023-11: $25.83 per share

- 2023-12: $30.76 per share

- 2024-01: $28.93 per share

- 2024-02: $26.08 per share

- 2024-03: $27.01 per share

- 2024-04: $23.34 per share

- 2024-05: $24.51 per share

- 2024-06: $23.98 per share

- 2024-07: $29.23 per share

- 2024-08: $28.98 per share

- 2024-09: $31.94 per share

- 2024-10: $29.72 per share

- 2024-11: $30.87 per share

- 2024-12: $30.71 per share

- 2025-01: $36.12 per share

- 2025-02: $32.32 per share

- 2025-03: $32.32 per share

- 2025-04: $37.51 per share

- 2025-05: $37.06 per share

- 2025-06: $38.17 per share

- 2025-07: $37.72 per share

- 2025-08: $41.37 per share

- 2025-09: $39.96 per share

- 2025-10: $37.47 per share

- 2025-11: $44.55 per share

- 2025-12: $45.79 per share

- 2026-01: $45.22 per share

- 2026-02: $41.91 per share

- 2026-03: $39.27 per share

- 2026-04: $46.01 per share

- 2026-05: $34.54 per share

- 2026-06: $39.75 per share

- 2026-07: $36.66 per share

- 2026-08: $34.24 per share

- 2026-09: $28.33 per share

- 2026-10: $26.67 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.