UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UWMC - US91823B1098 - Common Stock
4.87 USD
+0.02 (+0.41%)
4.93 USD
+0.06 (+1.23%)
We assign a fundamental rating of 5 out of 10 to UWMC. UWMC was compared to 99 industry peers in the Financial Services industry. There are concerns on the financial health of UWMC while its profitability can be described as average. UWMC shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year UWMC was profitable.
In the past year UWMC has reported a negative cash flow from operations.
Of the past 5 years UWMC 4 years were profitable.
In multiple years UWMC reported negative operating cash flow during the last 5 years.
1.2 Ratios
UWMC's Return On Assets of 0.10% is on the low side compared to the rest of the industry. UWMC is outperformed by 70.71% of its industry peers.
UWMC's Return On Equity of 9.50% is in line compared to the rest of the industry. UWMC outperforms 54.55% of its industry peers.
UWMC's Return On Invested Capital of 6.81% is fine compared to the rest of the industry. UWMC outperforms 71.72% of its industry peers.
UWMC had an Average Return On Invested Capital over the past 3 years of 6.93%. This is in line with the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.1% | ||
| ROE | 9.5% | ||
| ROIC | 6.81% |
ROA(3y)0.1%
ROA(5y)6.03%
ROE(3y)8.71%
ROE(5y)47.58%
ROIC(3y)6.93%
ROIC(5y)11.31%
1.3 Margins
The Profit Margin of UWMC (0.58%) is worse than 69.70% of its industry peers.
UWMC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 47.12%, UWMC belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
In the last couple of years the Operating Margin of UWMC has grown nicely.
UWMC's Gross Margin of 88.49% is amongst the best of the industry. UWMC outperforms 91.92% of its industry peers.
UWMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.12% | ||
| PM (TTM) | 0.58% | ||
| GM | 88.49% |
OM growth 3Y-10.37%
OM growth 5Y1.99%
PM growth 3Y-42.03%
PM growth 5Y-55.95%
GM growth 3Y-2.21%
GM growth 5Y-1.33%
2. Health
2.1 Basic Checks
UWMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for UWMC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, UWMC has less shares outstanding
Compared to 1 year ago, UWMC has a worse debt to assets ratio.
2.2 Solvency
UWMC has an Altman-Z score of 0.75. This is a bad value and indicates that UWMC is not financially healthy and even has some risk of bankruptcy.
UWMC has a Altman-Z score of 0.75. This is comparable to the rest of the industry: UWMC outperforms 56.57% of its industry peers.
UWMC has a Debt/Equity ratio of 81.18. This is a high value indicating a heavy dependency on external financing.
UWMC has a Debt to Equity ratio of 81.18. This is amonst the worse of the industry: UWMC underperforms 91.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 81.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC1.18
WACC5.75%
2.3 Liquidity
UWMC has a Current Ratio of 1.23. This is a normal value and indicates that UWMC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, UWMC is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that UWMC should not have too much problems paying its short term obligations.
UWMC has a Quick ratio of 1.23. This is in the better half of the industry: UWMC outperforms 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 155.56% over the past year.
The earnings per share for UWMC have been decreasing by -49.74% on average. This is quite bad
UWMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.70%.
The Revenue has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)155.56%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%0%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%60.18%
3.2 Future
The Earnings Per Share is expected to grow by 65.31% on average over the next years. This is a very strong growth
Based on estimates for the next years, UWMC will show a very strong growth in Revenue. The Revenue will grow by 21.50% on average per year.
EPS Next Y20.58%
EPS Next 2Y83%
EPS Next 3Y65.31%
EPS Next 5YN/A
Revenue Next Year28.53%
Revenue Next 2Y26.75%
Revenue Next 3Y21.5%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 97.40 indicates a quite expensive valuation of UWMC.
74.75% of the companies in the same industry are cheaper than UWMC, based on the Price/Earnings ratio.
UWMC is valuated expensively when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.39, which indicates a very decent valuation of UWMC.
UWMC's Price/Forward Earnings is on the same level as the industry average.
UWMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.4 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UWMC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as UWMC's earnings are expected to grow with 65.31% in the coming years.
PEG (NY)4.73
PEG (5Y)N/A
EPS Next 2Y83%
EPS Next 3Y65.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.25%, UWMC is a good candidate for dividend investing.
The stock price of UWMC dropped by -23.91% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 2.14. UWMC pays more dividend than 93.94% of the companies in the same industry.
UWMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.25% |
5.2 History
UWMC has been paying a dividend for over 5 years, so it has already some track record.
UWMC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
393.69% of the earnings are spent on dividend by UWMC. This is not a sustainable payout ratio.
DP393.69%
EPS Next 2Y83%
EPS Next 3Y65.31%
4.87
+0.02 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners66.04%
Inst Owner Change27.96%
Ins Owners7.4%
Ins Owner Change0.16%
Market Cap7.79B
Revenue(TTM)2.94B
Net Income(TTM)16.89M
Analysts73.33
Price Target7.14 (46.61%)
Short Float %15.37%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.25% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP393.69%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.44%
Min EPS beat(2)-85.15%
Max EPS beat(2)154.03%
EPS beat(4)1
Avg EPS beat(4)-87.75%
Min EPS beat(4)-319.9%
Max EPS beat(4)154.03%
EPS beat(8)2
Avg EPS beat(8)-135.61%
EPS beat(12)4
Avg EPS beat(12)-116.51%
EPS beat(16)7
Avg EPS beat(16)-30.71%
Revenue beat(2)2
Avg Revenue beat(2)12.2%
Min Revenue beat(2)6.71%
Max Revenue beat(2)17.68%
Revenue beat(4)3
Avg Revenue beat(4)5.05%
Min Revenue beat(4)-12.14%
Max Revenue beat(4)17.68%
Revenue beat(8)4
Avg Revenue beat(8)-13.75%
Revenue beat(12)7
Avg Revenue beat(12)-5.69%
Revenue beat(16)11
Avg Revenue beat(16)2%
PT rev (1m)3.7%
PT rev (3m)18.79%
EPS NQ rev (1m)-4.2%
EPS NQ rev (3m)19.3%
EPS NY rev (1m)-3.33%
EPS NY rev (3m)-49.08%
Revenue NQ rev (1m)8.04%
Revenue NQ rev (3m)16.02%
Revenue NY rev (1m)5.4%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.4 | ||
| Fwd PE | 10.39 | ||
| P/S | 2.65 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 43.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.8 |
EPS(TTM)0.05
EY1.03%
EPS(NY)0.47
Fwd EY9.63%
FCF(TTM)-2.1
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS1.84
BVpS0.11
TBVpS-1.96
PEG (NY)4.73
PEG (5Y)N/A
Graham Number0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.1% | ||
| ROE | 9.5% | ||
| ROCE | 8.67% | ||
| ROIC | 6.81% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 10.17% | ||
| OM | 47.12% | ||
| PM (TTM) | 0.58% | ||
| GM | 88.49% | ||
| FCFM | N/A |
ROA(3y)0.1%
ROA(5y)6.03%
ROE(3y)8.71%
ROE(5y)47.58%
ROIC(3y)6.93%
ROIC(5y)11.31%
ROICexc(3y)7.24%
ROICexc(5y)12.27%
ROICexgc(3y)12.36%
ROICexgc(5y)17.24%
ROCE(3y)8.83%
ROCE(5y)14.37%
ROICexgc growth 3Y-0.64%
ROICexgc growth 5Y5.54%
ROICexc growth 3Y-8.02%
ROICexc growth 5Y-0.21%
OM growth 3Y-10.37%
OM growth 5Y1.99%
PM growth 3Y-42.03%
PM growth 5Y-55.95%
GM growth 3Y-2.21%
GM growth 5Y-1.33%
F-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 81.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.05 | ||
| Cap/Depr | 115.52% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 0.75 |
F-Score4
WACC5.75%
ROIC/WACC1.18
Cap/Depr(3y)62.51%
Cap/Depr(5y)76.78%
Cap/Sales(3y)1.32%
Cap/Sales(5y)1.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)155.56%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%0%
EPS Next Y20.58%
EPS Next 2Y83%
EPS Next 3Y65.31%
EPS Next 5YN/A
Revenue 1Y (TTM)18.7%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%60.18%
Revenue Next Year28.53%
Revenue Next 2Y26.75%
Revenue Next 3Y21.5%
Revenue Next 5YN/A
EBIT growth 1Y11.66%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year-28.99%
EBIT Next 3Y22.28%
EBIT Next 5YN/A
FCF growth 1Y-61.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.71%
OCF growth 3YN/A
OCF growth 5YN/A
UWM HOLDINGS CORP / UWMC FAQ
Can you provide the ChartMill fundamental rating for UWM HOLDINGS CORP?
ChartMill assigns a fundamental rating of 5 / 10 to UWMC.
Can you provide the valuation status for UWM HOLDINGS CORP?
ChartMill assigns a valuation rating of 3 / 10 to UWM HOLDINGS CORP (UWMC). This can be considered as Overvalued.
How profitable is UWM HOLDINGS CORP (UWMC) stock?
UWM HOLDINGS CORP (UWMC) has a profitability rating of 4 / 10.
Can you provide the financial health for UWMC stock?
The financial health rating of UWM HOLDINGS CORP (UWMC) is 3 / 10.
What is the earnings growth outlook for UWM HOLDINGS CORP?
The Earnings per Share (EPS) of UWM HOLDINGS CORP (UWMC) is expected to grow by 20.58% in the next year.