UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - NYSE:UWMC - US91823B1098 - Common Stock
5.1 USD
-0.04 (-0.78%)
5.13 USD
+0.03 (+0.59%)
We assign a fundamental rating of 4 out of 10 to UWMC. UWMC was compared to 97 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. UWMC shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year UWMC was profitable.
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
UWMC has a worse Return On Assets (0.10%) than 73.20% of its industry peers.
UWMC has a Return On Equity (9.50%) which is comparable to the rest of the industry.
UWMC has a Return On Invested Capital of 6.81%. This is in the better half of the industry: UWMC outperforms 72.16% 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 8.15%.
| 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 73.20% of its industry peers.
In the last couple of years the Profit Margin of UWMC has declined.
UWMC's Operating Margin of 47.12% is amongst the best of the industry. UWMC outperforms 85.57% of its industry peers.
In the last couple of years the Operating Margin of UWMC has grown nicely.
The Gross Margin of UWMC (88.49%) is better than 90.72% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UWMC is creating some value.
UWMC has about the same amout of shares outstanding than it did 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
Based on the Altman-Z score of 0.76, we must say that UWMC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.76, UWMC perfoms like the industry average, outperforming 54.64% of the companies in the same industry.
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 91.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 81.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC1.18
WACC5.79%
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 60.82% of its industry peers.
UWMC has a Quick 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.
With a decent Quick ratio value of 1.23, UWMC is doing good in the industry, outperforming 62.89% of the companies in the same industry.
| 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.
The earnings per share for UWMC have been decreasing by -49.74% on average. This is quite bad
The Revenue has grown by 18.70% in the past year. This is quite good.
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
UWMC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.05% yearly.
Based on estimates for the next years, UWMC will show a quite strong growth in Revenue. The Revenue will grow by 16.78% on average per year.
EPS Next Y24.73%
EPS Next 2Y81.17%
EPS Next 3Y64.05%
EPS Next 5YN/A
Revenue Next Year21.94%
Revenue Next 2Y17.12%
Revenue Next 3Y16.78%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 102.00, UWMC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, UWMC is valued a bit more expensive than 77.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of UWMC to the average of the S&P500 Index (25.89), we can say UWMC is valued expensively.
UWMC is valuated reasonably with a Price/Forward Earnings ratio of 11.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UWMC is on the same level as its industry peers.
UWMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UWMC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UWMC does not grow enough to justify the current Price/Earnings ratio.
UWMC's earnings are expected to grow with 64.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.12
PEG (5Y)N/A
EPS Next 2Y81.17%
EPS Next 3Y64.05%
5. Dividend
5.1 Amount
UWMC has a Yearly Dividend Yield of 7.26%, which is a nice return.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 4.50. UWMC pays more dividend than 88.66% of the companies in the same industry.
UWMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
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 2Y81.17%
EPS Next 3Y64.05%
5.1
-0.04 (-0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners59.43%
Inst Owner Change1.19%
Ins Owners9.35%
Ins Owner Change0.16%
Market Cap8.16B
Revenue(TTM)2.94B
Net Income(TTM)16.89M
Analysts73.33
Price Target6.89 (35.1%)
Short Float %19.86%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
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)14.54%
PT rev (3m)13.17%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)-26.9%
EPS NY rev (1m)-25.57%
EPS NY rev (3m)-20.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102 | ||
| Fwd PE | 11.1 | ||
| P/S | 2.78 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 45.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.1 |
EPS(TTM)0.05
EY0.98%
EPS(NY)0.46
Fwd EY9.01%
FCF(TTM)-2.1
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS1.84
BVpS0.11
TBVpS-1.96
PEG (NY)4.12
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 | 0.76 |
F-Score4
WACC5.79%
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 Y24.73%
EPS Next 2Y81.17%
EPS Next 3Y64.05%
EPS Next 5YN/A
Revenue 1Y (TTM)18.7%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%60.18%
Revenue Next Year21.94%
Revenue Next 2Y17.12%
Revenue Next 3Y16.78%
Revenue Next 5YN/A
EBIT growth 1Y11.66%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year-23.65%
EBIT Next 3Y18.59%
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 4 / 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 24.73% in the next year.