UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UWMC - US91823B1098 - Common Stock
5.38 USD
-0.19 (-3.41%)
5.46 USD
+0.08 (+1.49%)
We assign a fundamental rating of 5 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 is valued quite expensively, but it does show have an excellent growth rating.
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 Return On Assets of 0.10%. This is in the lower half of the industry: UWMC underperforms 72.16% 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 71.13% of the companies in the same industry.
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 8.44%.
| 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's Profit Margin of 0.58% is on the low side compared to the rest of the industry. UWMC is outperformed by 71.13% of its industry peers.
UWMC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 47.12%, UWMC belongs to the best of the industry, outperforming 85.57% of the companies in the same industry.
UWMC's Operating Margin has improved in the last couple of years.
UWMC has a Gross Margin of 88.49%. This is amongst the best in the industry. UWMC outperforms 91.75% of its industry peers.
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
UWMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UWMC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for UWMC has been reduced compared to 5 years ago.
Compared to 1 year ago, UWMC has a worse debt to assets ratio.
2.2 Solvency
UWMC has an Altman-Z score of 0.79. 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 (0.79) which is comparable to the rest of the industry.
UWMC has a Debt/Equity ratio of 81.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 81.18, UWMC is not doing good in the industry: 92.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 81.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC1.15
WACC5.9%
2.3 Liquidity
A Current Ratio of 1.23 indicates that UWMC should not have too much problems paying its short term obligations.
UWMC's Current ratio of 1.23 is in line compared to the rest of the industry. UWMC outperforms 59.79% 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.
UWMC's Quick ratio of 1.23 is fine compared to the rest of the industry. UWMC outperforms 61.86% 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.
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
UWMC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.31% yearly.
UWMC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.50% yearly.
EPS Next Y20.58%
EPS Next 2Y83%
EPS Next 3Y65.31%
EPS Next 5YN/A
Revenue Next Year28.53%
Revenue Next 2Y26.75%
Revenue Next 3Y21.5%
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
UWMC is valuated quite expensively with a Price/Earnings ratio of 107.60.
Compared to the rest of the industry, the Price/Earnings ratio of UWMC indicates a slightly more expensive valuation: UWMC is more expensive than 78.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, UWMC is valued quite expensively.
A Price/Forward Earnings ratio of 11.48 indicates a reasonable valuation of UWMC.
The rest of the industry has a similar Price/Forward Earnings ratio as UWMC.
UWMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.6 | ||
| Fwd PE | 11.48 |
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 | 15.58 |
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 65.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.23
PEG (5Y)N/A
EPS Next 2Y83%
EPS Next 3Y65.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.98%, UWMC is a good candidate for dividend investing.
In the last 3 months the price of UWMC has falen by -21.46%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.88, UWMC pays a better dividend. On top of this UWMC pays more dividend than 93.81% of the companies listed in the same industry.
UWMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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 2Y83%
EPS Next 3Y65.31%
5.38
-0.19 (-3.41%)
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 Cap8.61B
Revenue(TTM)2.94B
Net Income(TTM)16.89M
Analysts73.33
Price Target7.14 (32.71%)
Short Float %15.4%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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)3.7%
PT rev (3m)18.79%
EPS NQ rev (1m)16.44%
EPS NQ rev (3m)19.3%
EPS NY rev (1m)-3.33%
EPS NY rev (3m)-49.08%
Revenue NQ rev (1m)16.02%
Revenue NQ rev (3m)13.28%
Revenue NY rev (1m)5.4%
Revenue NY rev (3m)-6.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.6 | ||
| Fwd PE | 11.48 | ||
| P/S | 2.93 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 48.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.58 |
EPS(TTM)0.05
EY0.93%
EPS(NY)0.47
Fwd EY8.71%
FCF(TTM)-2.1
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS1.84
BVpS0.11
TBVpS-1.96
PEG (NY)5.23
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 | 0.79 |
F-Score4
WACC5.9%
ROIC/WACC1.15
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 Y20.58%
EPS Next 2Y83%
EPS Next 3Y65.31%
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 2Y26.75%
Revenue Next 3Y21.5%
Revenue Next 5YN/A
EBIT growth 1Y11.66%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year-28.99%
EBIT Next 3Y22.28%
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.
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 20.58% in the next year.