OneMain Holdings: It's Still Trading Within My Margin Of Safety

OneMain Holdings remains resilient amid macro volatility, delivering 2.5% returns since the last coverage and justifying my reiterated buy rating.

OMF's risk is mitigated by 55% of personal loans being secured, a $2.8B loan loss allowance, and fixed-rate lending, supporting credit quality.

My updated Dividend Discount Model yields a target price of $88.79; with a 20% margin of safety, my buy zone is up to $71.04.

OMF offers an attractive ~7% dividend yield, with yields remaining compelling even if the stock appreciates to my conservative target.

Two and a half months after my previous coverage, OneMain Holdings, Inc. (OMF) remained resilient. Recent events like the Middle East War and inflation reacceleration did not erode its value. It even delivered 2.5% returns.