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Onity GroupFRA:OW0A -1.19%62 Gross Margin % is 49.03% as of Mar. 2026, which is 1% above its 10-year median of 48.52. GuruFocus rates FRA:OW0A with a GF Score™ of 62/100 and a GF Value™ of €26.18. The stock has 7 warning signs investors should review. Among 43 Banks companies, Onity Group ranks better than 65.12% on this metric.
Onity Group Inc gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Onity Group's Gross Margin % or its related term are showing as below:
FRA:OW0A'
s Gross Margin % Range Over the Past 10 Years
Min: 30.54 Med: 48.52 Max: 53.73
Current: 48.2
During the past 13 years, the highestGross Margin % of Onity Group was 53.73%. The lowest was 30.54%. And the median was 48.52%.
FRA:OW0A's Gross Margin % is ranked better than 65.12% of 43
companies
in the Banks industry
Industry Median: 40.26
vs FRA:OW0A: 48.20
Onity Group had a gross margin of 49.03% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Onity Group was -1.50% per year.
Onity Group (FRA:OW0A) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Onity Group had a gross margin of 49.03% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Onity Group Gross Margin % Related Terms
Onity Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Onity Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:OW0A vs BETR, GHI, IOR: Gross Margin % Comparison
For the Mortgage Finance subindustry, Onity Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Onity Group Gross Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Onity Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Onity Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Onity Group (FRA:OW0A) has a Gross Margin % of 49.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Onity Group and its competitors. This is near median its historical median of 48.52. Over the past decade, Onity Group's Gross Margin % has ranged from 30.54 to 53.73. According to the industry distribution chart, Onity Group ranks #15 out of 43 companies in the Banks industry, placing it in the top 34.9%.
Is Onity Group's Gross Margin % too high?
Onity Group's current Gross Margin % of 49.03% is near median its 10-year median of 48.52. Over the past 10 years, this metric has ranged from a low of 30.54 to a high of 53.73. The Banks industry median Gross Margin % is 40.26. Onity Group's value of 49.03% is 21.8% above this industry median. Based on the distribution chart, Onity Group ranks #15 out of 43 companies in the Banks industry, which is above the industry midpoint. Overall, Onity Group has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Onity Group's Gross Margin % compare to BETR and GHI?
According to the Banks industry distribution chart, Onity Group ranks #15 out of 43 companies for Gross Margin %. This puts Onity Group in the upper half of its industry. The industry median Gross Margin % is 40.26. Onity Group's value of 49.03% is 21.8% above this benchmark. Historically, Onity Group's own Gross Margin % has ranged from 30.54 to 53.73 over the past decade. While the company's 10-year median is 48.52 vs. the industry median of 40.26, Onity Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Banks company?
The median Gross Margin % among Banks companies is 40.26, based on 43 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Onity Group's current Gross Margin % of 49.03% is 21.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Onity Group and its competitors. For the Banks industry, the median Gross Margin % is 40.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Onity Group's current Gross Margin % is 49.03%, which is near median its own 10-year median of 48.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Onity Group stock overvalued right now?
Onity Group (FRA:OW0A) has a current Gross Margin % of 49.03%. The stock's GF Value™ is €26.18, compared to a current price of €33.20 — trading 26.8% above its estimated fair value. The current Gross Margin % is 49.03%, which is near median its 10-year median of 48.52 and 21.8% above the Banks industry median of 40.26. Onity Group's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Onity Group (FRA:OW0A), the current Gross Margin % is 49.03% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Onity Group (FRA:OW0A) Overvalued in 2026?
Based on GuruFocus' analysis, Onity Group stock appears to be overvalued.
The current stock price of €33.20 is trading 26.8% above its estimated GF Value™ of €26.18.
Key valuation signals for FRA:OW0A:
Gross Margin %: 49.03% (near median its 10-year median of 48.52)
GF Value™: €26.18 vs. price of €33.20 (26.8% above fair value)
Industry Position: 21.8% above the Banks median (#15 of 43)
No single metric tells the full story. See the FRA:OW0A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Onity Group Inc is a non-bank mortgage servicer and originator providing solutions through its brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the servicers in the country that focused on delivering a variety of servicing and lending programs and Liberty is one of the nation's reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs.
62GF Score
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