UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - NYSE:UWMC - US91823B1098 - Common Stock
4.85 USD
-0.15 (-3%)
4.87 USD
+0.02 (+0.41%)
UWMC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 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.
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.
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
With a Return On Assets value of 0.10%, UWMC is not doing good in the industry: 71.72% of the companies in the same industry are doing better.
UWMC has a Return On Equity (9.50%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 6.81%, UWMC is doing good in the industry, outperforming 72.73% 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 8.14%.
| 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's Profit Margin of 0.58% is on the low side compared to the rest of the industry. UWMC is outperformed by 70.71% of its industry peers.
UWMC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 47.12%, UWMC belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
UWMC's Operating Margin has improved in the last couple of years.
The Gross Margin of UWMC (88.49%) is better than 90.91% 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.
Compared to 1 year ago, UWMC has about the same amount of shares outstanding.
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's Altman-Z score of 0.75 is in line compared to the rest of the industry. UWMC outperforms 54.55% of its industry peers.
A Debt/Equity ratio of 81.18 is on the high side and indicates that UWMC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 81.18, UWMC is doing worse than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 81.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC1.19
WACC5.74%
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's Current ratio of 1.23 is fine compared to the rest of the industry. UWMC outperforms 60.61% 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 62.63% 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
Looking at the last year, UWMC shows a quite strong growth in Revenue. The Revenue has grown by 18.70% in the last year.
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
Based on the Price/Earnings ratio of 97.00, 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 77.78% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.07, UWMC is valued quite expensively.
With a Price/Forward Earnings ratio of 10.55, the valuation of UWMC can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as UWMC.
When comparing the Price/Forward Earnings ratio of UWMC to the average of the S&P500 Index (34.08), we can say UWMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
UWMC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.78 |
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)3.92
PEG (5Y)N/A
EPS Next 2Y81.17%
EPS Next 3Y64.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.78%, UWMC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.68, UWMC pays a better dividend. On top of this UWMC pays more dividend than 92.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, UWMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
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
UWMC pays out 393.69% of its income as dividend. This is not a sustainable payout ratio.
DP393.69%
EPS Next 2Y81.17%
EPS Next 3Y64.05%
4.85
-0.15 (-3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners59.43%
Inst Owner Change23.59%
Ins Owners9.35%
Ins Owner Change0.18%
Market Cap7.76B
Revenue(TTM)2.94B
Net Income(TTM)16.89M
Analysts73.33
Price Target6.89 (42.06%)
Short Float %20.03%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
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)6.64%
EPS NQ rev (3m)-17.26%
EPS NY rev (1m)-25.57%
EPS NY rev (3m)-20.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97 | ||
| Fwd PE | 10.55 | ||
| P/S | 2.64 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 43.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.78 |
EPS(TTM)0.05
EY1.03%
EPS(NY)0.46
Fwd EY9.47%
FCF(TTM)-2.1
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS1.84
BVpS0.11
TBVpS-1.96
PEG (NY)3.92
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
WACC5.74%
ROIC/WACC1.19
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.