UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - NYSE:UWMC - US91823B1098 - Common Stock
6.72 USD
+0.07 (+1.05%)
6.7794 USD
+0.06 (+0.88%)
Taking everything into account, UWMC scores 4 out of 10 in our fundamental rating. UWMC was compared to 101 industry peers in the Financial Services industry. While UWMC is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, UWMC is valued expensive at the moment.
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.
UWMC had positive earnings in 4 of the past 5 years.
In multiple years UWMC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of UWMC (0.09%) is worse than 71.29% of its industry peers.
The Return On Equity of UWMC (6.73%) is comparable to the rest of the industry.
UWMC has a better Return On Invested Capital (8.23%) than 78.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UWMC is in line with the industry average of 7.65%.
The 3 year average ROIC (6.93%) for UWMC is below the current ROIC(8.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 6.73% | ||
| ROIC | 8.23% |
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 (0.42%) is worse than 70.30% of its industry peers.
UWMC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 47.61%, UWMC belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
UWMC's Operating Margin has improved in the last couple of years.
UWMC has a better Gross Margin (88.61%) than 91.09% of its industry peers.
UWMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.61% | ||
| PM (TTM) | 0.42% | ||
| GM | 88.61% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UWMC is still creating some value.
Compared to 1 year ago, UWMC has about the same amount of shares outstanding.
UWMC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UWMC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that UWMC is in the distress zone and has some risk of bankruptcy.
UWMC has a Altman-Z score (1.02) which is in line with its industry peers.
UWMC has a Debt/Equity ratio of 63.25. This is a high value indicating a heavy dependency on external financing.
UWMC has a Debt to Equity ratio of 63.25. This is amonst the worse of the industry: UWMC underperforms 92.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC1.13
WACC7.3%
2.3 Liquidity
UWMC has a Current Ratio of 1.08. This is a normal value and indicates that UWMC is financially healthy and should not expect problems in meeting its short term obligations.
UWMC has a Current ratio of 1.08. This is comparable to the rest of the industry: UWMC outperforms 51.49% of its industry peers.
A Quick Ratio of 1.08 indicates that UWMC should not have too much problems paying its short term obligations.
UWMC has a Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
UWMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
The earnings per share for UWMC have been decreasing by -49.74% on average. This is quite bad
UWMC shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.76%.
Measured over the past years, UWMC shows a quite strong growth in Revenue. The Revenue has been growing by 15.91% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%300%
Revenue 1Y (TTM)22.76%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%49.62%
3.2 Future
The Earnings Per Share is expected to grow by 59.55% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.69% on average over the next years. This is quite good.
EPS Next Y136.79%
EPS Next 2Y74.51%
EPS Next 3Y59.55%
EPS Next 5YN/A
Revenue Next Year32.04%
Revenue Next 2Y19.21%
Revenue Next 3Y12.69%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 134.40, the valuation of UWMC can be described as expensive.
Based on the Price/Earnings ratio, UWMC is valued a bit more expensive than the industry average as 78.22% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.20. UWMC is valued rather expensively when compared to this.
UWMC is valuated correctly with a Price/Forward Earnings ratio of 15.76.
UWMC's Price/Forward Earnings ratio is in line with the industry average.
UWMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.4 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
60.40% of the companies in the same industry are more expensive than UWMC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.2 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as UWMC's earnings are expected to grow with 59.55% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y74.51%
EPS Next 3Y59.55%
5. Dividend
5.1 Amount
UWMC has a Yearly Dividend Yield of 5.84%, which is a nice return.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 4.86. UWMC pays more dividend than 84.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, UWMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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
467.72% of the earnings are spent on dividend by UWMC. This is not a sustainable payout ratio.
DP467.72%
EPS Next 2Y74.51%
EPS Next 3Y59.55%
6.72
+0.07 (+1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners58.63%
Inst Owner Change12.13%
Ins Owners11%
Ins Owner Change0.16%
Market Cap10.75B
Analysts74.67
Price Target6.01 (-10.57%)
Short Float %20.18%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP467.72%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-82.94%
Min EPS beat(2)-319.9%
Max EPS beat(2)154.03%
EPS beat(4)1
Avg EPS beat(4)-88.26%
Min EPS beat(4)-319.9%
Max EPS beat(4)154.03%
EPS beat(8)3
Avg EPS beat(8)-108.74%
EPS beat(12)5
Avg EPS beat(12)-54.21%
EPS beat(16)8
Avg EPS beat(16)-23.15%
Revenue beat(2)2
Avg Revenue beat(2)7.32%
Min Revenue beat(2)6.71%
Max Revenue beat(2)7.92%
Revenue beat(4)2
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-12.14%
Max Revenue beat(4)7.92%
Revenue beat(8)4
Avg Revenue beat(8)-12.41%
Revenue beat(12)7
Avg Revenue beat(12)-4.09%
Revenue beat(16)11
Avg Revenue beat(16)3.25%
PT rev (1m)-1.2%
PT rev (3m)-8.56%
EPS NQ rev (1m)-19.25%
EPS NQ rev (3m)-25.95%
EPS NY rev (1m)50.93%
EPS NY rev (3m)12.4%
Revenue NQ rev (1m)-7.94%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)3.45%
Revenue NY rev (3m)8.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.4 | ||
| Fwd PE | 15.76 | ||
| P/S | 3.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 61.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.2 |
EPS(TTM)0.05
EY0.74%
EPS(NY)0.43
Fwd EY6.34%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)-1.5
OCFYN/A
SpS1.77
BVpS0.11
TBVpS-2.04
PEG (NY)0.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 6.73% | ||
| ROCE | 10.49% | ||
| ROIC | 8.23% | ||
| ROICexc | 8.55% | ||
| ROICexgc | 12.98% | ||
| OM | 47.61% | ||
| PM (TTM) | 0.42% | ||
| GM | 88.61% | ||
| 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%
ROICexcg growth 3Y-0.64%
ROICexcg 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-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.95 | ||
| Cap/Depr | 122.71% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.02 |
F-Score3
WACC7.3%
ROIC/WACC1.13
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)0%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%300%
EPS Next Y136.79%
EPS Next 2Y74.51%
EPS Next 3Y59.55%
EPS Next 5YN/A
Revenue 1Y (TTM)22.76%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%49.62%
Revenue Next Year32.04%
Revenue Next 2Y19.21%
Revenue Next 3Y12.69%
Revenue Next 5YN/A
EBIT growth 1Y17.61%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year-19.07%
EBIT Next 3Y16.77%
EBIT Next 5YN/A
FCF growth 1Y17.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.7%
OCF growth 3YN/A
OCF growth 5YN/A