Taking everything into account, UWMC scores 4 out of 10 in our fundamental rating. 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 is valued quite expensively, but it does show have an excellent growth rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

UWMC has a worse Return On Assets (0.10%) than 71.13% of its industry peers.
UWMC has a Return On Equity of 9.50%. This is comparable to the rest of the industry: UWMC outperforms 52.58% of its industry peers.
The Return On Invested Capital of UWMC (6.81%) is better than 71.13% 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 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 71.13% of its industry peers.
In the last couple of years the Profit Margin of UWMC has declined.
The Operating Margin of UWMC (47.12%) is better than 85.57% of its industry peers.
UWMC's Operating Margin has improved in the last couple of years.
UWMC's Gross Margin of 88.49% is amongst the best of the industry. UWMC outperforms 91.75% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UWMC is destroying value.
The number of shares outstanding for UWMC remains at a similar level compared to 1 year ago.
UWMC has less shares outstanding than it did 5 years ago.
UWMC has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.80, we must say that UWMC is in the distress zone and has some risk of bankruptcy.
UWMC's Altman-Z score of 0.80 is in line compared to the rest of the industry. UWMC outperforms 56.70% 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 92.78% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	81.18
Debt/FCF	N/A
Altman-Z	0.8

ROIC/WACC0.91

WACC7.47%

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 60.82% 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.
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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
UWMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.70%.
UWMC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.91% yearly.

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.
UWMC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.60% yearly.

EPS Next Y-6.93%

EPS Next 2Y82.41%

EPS Next 3Y63.51%

EPS Next 5YN/A

Revenue Next Year22.07%

Revenue Next 2Y25.27%

Revenue Next 3Y20.55%

Revenue Next 5Y21.6%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 115.80, 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.
UWMC is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.43, which indicates a correct valuation of UWMC.
UWMC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, UWMC is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	115.8
Fwd PE	12.43

4.2 Price Multiples

UWMC's Enterprise Value to EBITDA is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	15.84

4.3 Compensation for Growth

UWMC's earnings are expected to grow with 63.51% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y82.41%

EPS Next 3Y63.51%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.56%, UWMC is a good candidate for dividend investing.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 2.24. UWMC pays more dividend than 89.69% of the companies in the same industry.
UWMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	6.56%

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%

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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.

What is the valuation status of UWM HOLDINGS CORP (UWMC) stock?

ChartMill assigns a valuation rating of 2 / 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%.