UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - NYSE:UWMC - US91823B1098 - Common Stock
5.1 USD
-0.04 (-0.78%)
5.19 USD
+0.09 (+1.76%)
Taking everything into account, UWMC scores 4 out of 10 in our fundamental rating. UWMC was compared to 99 industry peers in the Financial Services industry. There are concerns on the financial health of UWMC while its profitability can be described as average. UWMC shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
UWMC had positive earnings in the past year.
In the past year UWMC has reported a negative cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.10%, UWMC is doing worse than 73.20% of the companies in the same industry.
UWMC has a Return On Equity of 9.50%. This is comparable to the rest of the industry: UWMC outperforms 48.45% of its industry peers.
UWMC has a better Return On Invested Capital (6.81%) than 72.16% 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 8.10%.
| 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
With a Profit Margin value of 0.58%, UWMC is not doing good in the industry: 73.20% of the companies in the same industry are doing better.
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 85.57% of the companies in the same industry.
UWMC's Operating Margin has improved in the last couple of years.
UWMC has a better Gross Margin (88.49%) 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.
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.
The debt/assets ratio for UWMC is higher compared to a year ago.
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.
UWMC has a Altman-Z score (0.76) 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.
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/WACC1.17
WACC5.8%
2.3 Liquidity
A Current Ratio of 1.23 indicates that UWMC should not have too much problems paying 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.
UWMC's Quick ratio of 1.23 is fine compared to the rest of the industry. UWMC outperforms 62.89% 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.
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
Based on estimates for the next years, UWMC will show a very strong growth in Earnings Per Share. The EPS will grow by 64.05% on average per year.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 102.00, the valuation of UWMC can be described as expensive.
UWMC's Price/Earnings ratio is a bit more expensive when compared to the industry. UWMC is 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.
A Price/Forward Earnings ratio of 11.10 indicates a reasonable 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 34.59, UWMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102 | ||
| Fwd PE | 11.1 |
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 | 15.06 |
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.
A more expensive valuation may be justified as UWMC's earnings are expected to grow with 64.05% in the coming years.
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 7.78%, which is a nice return.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 4.67. UWMC pays more dividend than 92.78% of the companies 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
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 Change23.59%
Ins Owners9.35%
Ins Owner Change0.18%
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 | 7.78% |
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 | 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 | 15.06 |
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
WACC5.8%
ROIC/WACC1.17
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.