Onity Group Inc. — Earnings Quality Grade F
ONIT · Financial Services
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 51 days, change -5 days YoY
AR growth 2.5% vs revenue growth 12.4%
Revenue grew 12.4% but CFFO declined -30.4%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
No material inventory
CapEx growth 61.4% is >2x revenue growth 12.4%
SG&A/Gross Profit = 28.4%, excellent (<30%)
Gross margin 48.4%, change +2.1pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF < 50% of Net Income for 2 years
Accruals ratio = 5.8%. Elevated
Cash $0.2B covers only 1% of debt $15.2B
Balance Sheet Health
Goodwill+Intangibles $2.8B = 450% of equity. Over 50%
Debt/EBITDA = 63.9x (>4x). Financial stress
Other assets 12.2% vs revenue 12.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 15% YoY. Normal
Manipulation Score
M-Score = -2.10 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score — Not Applicable
Onity Group Inc. is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25