UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
NYSE:UWMC - US91823B1098 - Common Stock
5.7 USD
+0.12 (+2.15%)
5.7 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to UWMC. UWMC was compared to 102 industry peers in the Financial Services industry. UWMC has a medium profitability rating, but doesn't score so well on its financial health evaluation. UWMC is valied quite expensively at the moment, while it does show a decent growth rate.
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 0.09%, UWMC is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
The Return On Equity of UWMC (6.73%) is comparable to the rest of the industry.
UWMC's Return On Invested Capital of 8.23% is fine compared to the rest of the industry. UWMC outperforms 78.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UWMC is in line with the industry average of 7.59%.
The last Return On Invested Capital (8.23%) for UWMC is above the 3 year average (6.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 6.73% | ||
| ROIC | 8.23% |
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 (0.42%) than 69.61% of its industry peers.
In the last couple of years the Profit Margin of UWMC has declined.
The Operating Margin of UWMC (47.61%) is better than 86.27% of its industry peers.
In the last couple of years the Operating Margin of UWMC has grown nicely.
UWMC has a better Gross Margin (88.61%) than 91.18% 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 | 47.61% | ||
| PM (TTM) | 0.42% | ||
| GM | 88.61% |
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.
The debt/assets ratio for UWMC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that UWMC is in the distress zone and has some risk of bankruptcy.
UWMC has a Altman-Z score (0.95) which is in line with its industry peers.
UWMC has a Debt/Equity ratio of 63.25. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 63.25, UWMC is not doing good in the industry: 92.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC1.13
WACC7.28%
2.3 Liquidity
A Current Ratio of 1.08 indicates that UWMC should not have too much problems paying its short term obligations.
UWMC has a Current ratio (1.08) which is comparable to the rest of the industry.
UWMC has a Quick Ratio of 1.08. 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 Quick ratio value of 1.08, UWMC perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
The earnings per share for UWMC have been decreasing by -49.74% on average. This is quite bad
UWMC shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.76%.
The Revenue has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)0%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%300%
Revenue 1Y (TTM)22.76%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%49.62%
3.2 Future
UWMC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.55% yearly.
Based on estimates for the next years, UWMC will show a quite strong growth in Revenue. The Revenue will grow by 14.30% on average per year.
EPS Next Y136.79%
EPS Next 2Y74.51%
EPS Next 3Y59.55%
EPS Next 5YN/A
Revenue Next Year37.83%
Revenue Next 2Y12.56%
Revenue Next 3Y14.3%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 114.00, 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 77.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, UWMC is valued quite expensively.
The Price/Forward Earnings ratio is 13.37, which indicates a correct valuation of UWMC.
UWMC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of UWMC to the average of the S&P500 Index (22.76), we can say UWMC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114 | ||
| Fwd PE | 13.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UWMC indicates a somewhat cheap valuation: UWMC is cheaper than 61.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.04 |
4.3 Compensation for Growth
UWMC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UWMC's earnings are expected to grow with 59.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y74.51%
EPS Next 3Y59.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.02%, UWMC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, UWMC pays a better dividend. On top of this UWMC pays more dividend than 92.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, UWMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
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
467.72% of the earnings are spent on dividend by UWMC. This is not a sustainable payout ratio.
DP467.72%
EPS Next 2Y74.51%
EPS Next 3Y59.55%
5.7
+0.12 (+2.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners58.63%
Inst Owner Change12.13%
Ins Owners11%
Ins Owner Change0%
Market Cap9.12B
Analysts74.67
Price Target6.01 (5.44%)
Short Float %18.81%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP467.72%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-82.94%
Min EPS beat(2)-319.9%
Max EPS beat(2)154.03%
EPS beat(4)1
Avg EPS beat(4)-88.26%
Min EPS beat(4)-319.9%
Max EPS beat(4)154.03%
EPS beat(8)3
Avg EPS beat(8)-108.74%
EPS beat(12)5
Avg EPS beat(12)-54.21%
EPS beat(16)8
Avg EPS beat(16)-23.15%
Revenue beat(2)2
Avg Revenue beat(2)7.32%
Min Revenue beat(2)6.71%
Max Revenue beat(2)7.92%
Revenue beat(4)2
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-12.14%
Max Revenue beat(4)7.92%
Revenue beat(8)4
Avg Revenue beat(8)-12.41%
Revenue beat(12)7
Avg Revenue beat(12)-4.09%
Revenue beat(16)11
Avg Revenue beat(16)3.25%
PT rev (1m)-1.33%
PT rev (3m)-15.82%
EPS NQ rev (1m)-22.73%
EPS NQ rev (3m)-37.13%
EPS NY rev (1m)50.93%
EPS NY rev (3m)12.4%
Revenue NQ rev (1m)-6.67%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)7.98%
Revenue NY rev (3m)17.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114 | ||
| Fwd PE | 13.37 | ||
| P/S | 3.21 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 51.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.04 |
EPS(TTM)0.05
EY0.88%
EPS(NY)0.43
Fwd EY7.48%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)-1.5
OCFYN/A
SpS1.77
BVpS0.11
TBVpS-2.04
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 6.73% | ||
| ROCE | 10.49% | ||
| ROIC | 8.23% | ||
| ROICexc | 8.55% | ||
| ROICexgc | 12.98% | ||
| OM | 47.61% | ||
| PM (TTM) | 0.42% | ||
| GM | 88.61% | ||
| 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%
ROICexcg growth 3Y-0.64%
ROICexcg 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-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.95 | ||
| Cap/Depr | 122.71% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 0.95 |
F-Score3
WACC7.28%
ROIC/WACC1.13
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)0%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%300%
EPS Next Y136.79%
EPS Next 2Y74.51%
EPS Next 3Y59.55%
EPS Next 5YN/A
Revenue 1Y (TTM)22.76%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%49.62%
Revenue Next Year37.83%
Revenue Next 2Y12.56%
Revenue Next 3Y14.3%
Revenue Next 5YN/A
EBIT growth 1Y17.61%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year-19.07%
EBIT Next 3Y16.77%
EBIT Next 5YN/A
FCF growth 1Y17.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.7%
OCF growth 3YN/A
OCF growth 5YN/A