UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UWMC - US91823B1098 - Common Stock
4.38 USD
-0.04 (-0.9%)
4.3712 USD
-0.01 (-0.2%)
Taking everything into account, UWMC scores 5 out of 10 in our fundamental rating. UWMC was compared to 98 industry peers in the Financial Services industry. UWMC has a medium profitability rating, but doesn't score so well on its financial health evaluation. UWMC shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
UWMC had positive earnings in the past year.
UWMC had a negative operating cash flow in the past year.
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
The Return On Assets of UWMC (0.10%) is worse than 70.41% of its industry peers.
UWMC has a Return On Equity (9.50%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.81%, UWMC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UWMC 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
UWMC has a worse Profit Margin (0.58%) than 70.41% of its industry peers.
UWMC's Profit Margin has declined in the last couple of years.
UWMC has a better Operating Margin (47.12%) than 85.71% of its industry peers.
UWMC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 88.49%, UWMC belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Gross Margin of UWMC has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UWMC is still creating some value.
The number of shares outstanding for UWMC remains at a similar level compared to 1 year ago.
The number of shares outstanding for UWMC has been reduced compared to 5 years ago.
UWMC has a worse debt/assets ratio than last year.
2.2 Solvency
UWMC has an Altman-Z score of 0.72. 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 0.72. This is comparable to the rest of the industry: UWMC outperforms 56.12% 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 worse Debt to Equity ratio (81.18) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 81.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC1.21
WACC5.61%
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.
UWMC has a better Current ratio (1.23) than 60.20% of its industry peers.
A Quick Ratio of 1.23 indicates that UWMC should not have too much problems paying its short term obligations.
UWMC has a better Quick ratio (1.23) than 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
UWMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 155.56%, which is quite impressive.
UWMC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.74% yearly.
Looking at the last year, UWMC shows a quite strong growth in Revenue. The Revenue has grown by 18.70% in the last year.
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)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
Based on estimates for the next years, UWMC will show a very strong growth in Earnings Per Share. The EPS will grow by 63.51% on average per year.
The Revenue is expected to grow by 20.55% on average over the next years. This is a very strong growth
EPS Next Y-6.93%
EPS Next 2Y82.41%
EPS Next 3Y63.51%
EPS Next 5YN/A
Revenue Next Year28.53%
Revenue Next 2Y25.27%
Revenue Next 3Y20.55%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 87.60, UWMC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of UWMC indicates a slightly more expensive valuation: UWMC is more expensive than 74.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, UWMC is valued quite expensively.
The Price/Forward Earnings ratio is 9.40, which indicates a very decent valuation of UWMC.
UWMC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of UWMC to the average of the S&P500 Index (23.13), we can say UWMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.6 | ||
| Fwd PE | 9.4 |
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 | 14.3 |
4.3 Compensation for Growth
A more expensive valuation may be justified as UWMC's earnings are expected to grow with 63.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y82.41%
EPS Next 3Y63.51%
5. Dividend
5.1 Amount
UWMC has a Yearly Dividend Yield of 8.60%, which is a nice return.
In the last 3 months the price of UWMC has falen by -26.76%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 2.36. UWMC pays more dividend than 93.88% of the companies in the same industry.
UWMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
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 2Y82.41%
EPS Next 3Y63.51%
4.38
-0.04 (-0.9%)
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 Cap7.01B
Revenue(TTM)2.94B
Net Income(TTM)16.89M
Analysts73.33
Price Target6.85 (56.39%)
Short Float %11.73%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP393.69%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)-4.02%
PT rev (3m)14.02%
EPS NQ rev (1m)-4.97%
EPS NQ rev (3m)19.99%
EPS NY rev (1m)-25.38%
EPS NY rev (3m)-44.46%
Revenue NQ rev (1m)-3.19%
Revenue NQ rev (3m)12.32%
Revenue NY rev (1m)5.4%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.6 | ||
| Fwd PE | 9.4 | ||
| P/S | 2.39 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 39.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.3 |
EPS(TTM)0.05
EY1.14%
EPS(NY)0.47
Fwd EY10.64%
FCF(TTM)-2.1
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS1.84
BVpS0.11
TBVpS-1.96
PEG (NY)N/A
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 | 0.72 |
F-Score4
WACC5.61%
ROIC/WACC1.21
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 Y-6.93%
EPS Next 2Y82.41%
EPS Next 3Y63.51%
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 2Y25.27%
Revenue Next 3Y20.55%
Revenue Next 5YN/A
EBIT growth 1Y11.66%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year-29.11%
EBIT Next 3Y22.68%
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.
What is the valuation status of UWM HOLDINGS CORP (UWMC) stock?
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.
What is the earnings growth outlook for UWM HOLDINGS CORP?
The Earnings per Share (EPS) of UWM HOLDINGS CORP (UWMC) is expected to decline by -6.93% in the next year.
How sustainable is the dividend of UWM HOLDINGS CORP (UWMC) stock?
The dividend rating of UWM HOLDINGS CORP (UWMC) is 5 / 10 and the dividend payout ratio is 393.69%.