OneMain's shares have fallen to $61.85 over the last six months, a 9% loss that contrasts with the S&P 500's 6.1% gain. The company's revenue grew at a tepid 5.3% compounded annual rate over five years, while earnings per share declined by 5.5% annually over the same period, signaling shrinking profitability. OneMain also carries a high debt load, with $22.4 billion in debt against $1.56 billion in cash, resulting in a net-debt-to-EBITDA ratio of 14.9 times. The stock trades at 7.9 times forward earnings, but analysts caution that shaky fundamentals could pose further downside risk.
OneMain Holdings Incearnings decline, high debt, and analyst caution signal weak fundamentals
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