UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UWMC - US91823B1098 - Common Stock
4.71 USD
+0.08 (+1.73%)
5 USD
+0.29 (+6.16%)
Taking everything into account, UWMC scores 5 out of 10 in our fundamental rating. UWMC was compared to 98 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 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.
In the past year UWMC has reported a negative cash flow from operations.
Of the past 5 years UWMC 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: UWMC reported negative operating cash flow in multiple years.
1.2 Ratios
UWMC has a Return On Assets of 0.10%. This is in the lower half of the industry: UWMC underperforms 70.41% of its industry peers.
The Return On Equity of UWMC (9.50%) is comparable to the rest of the industry.
The Return On Invested Capital of UWMC (6.81%) is better than 71.43% of its industry peers.
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 70.41% of its industry peers.
In the last couple of years the Profit Margin of UWMC has declined.
UWMC's Operating Margin of 47.12% is amongst the best of the industry. UWMC outperforms 85.71% of its industry peers.
UWMC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 88.49%, UWMC belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
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
UWMC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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 0.74, we must say that UWMC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.74, UWMC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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 90.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 81.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.91
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.23 indicates that UWMC should not have too much problems paying its short term obligations.
UWMC has a better Current ratio (1.23) than 61.22% 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 63.27% 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.
Measured over the past years, UWMC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -49.74% on average per year.
UWMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.70%.
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 63.51% yearly.
Based on estimates for the next years, UWMC will show a very strong growth in Revenue. The Revenue will grow by 20.55% on average per year.
EPS Next Y-6.93%
EPS Next 2Y82.41%
EPS Next 3Y63.51%
EPS Next 5YN/A
Revenue Next Year28.53%
Revenue Next 2Y25.27%
Revenue Next 3Y20.55%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 94.20, the valuation of UWMC can be described as expensive.
Based on the Price/Earnings ratio, UWMC is valued a bit more expensive than 74.49% of the companies in the same industry.
UWMC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 10.11 indicates a reasonable valuation of UWMC.
UWMC's Price/Forward Earnings is on the same level as the industry average.
UWMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.2 | ||
| Fwd PE | 10.11 |
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 | 14.63 |
4.3 Compensation for Growth
A more expensive valuation may be justified as UWMC's earnings are expected to grow with 63.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y82.41%
EPS Next 3Y63.51%
5. Dividend
5.1 Amount
UWMC has a Yearly Dividend Yield of 9.13%, which is a nice return.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 2.35. UWMC pays more dividend than 94.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, UWMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.13% |
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%
4.71
+0.08 (+1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.64%
Inst Owner Change0%
Ins Owners6.77%
Ins Owner Change0.16%
Market Cap7.54B
Revenue(TTM)2.94B
Net Income(TTM)16.89M
Analysts73.33
Price Target6.85 (45.44%)
Short Float %11.73%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.13% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP393.69%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)-4.02%
PT rev (3m)14.02%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)32.31%
EPS NY rev (1m)-22.81%
EPS NY rev (3m)-44.46%
Revenue NQ rev (1m)-3.19%
Revenue NQ rev (3m)12.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.2 | ||
| Fwd PE | 10.11 | ||
| P/S | 2.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 42.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.63 |
EPS(TTM)0.05
EY1.06%
EPS(NY)0.47
Fwd EY9.89%
FCF(TTM)-2.1
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS1.84
BVpS0.11
TBVpS-1.96
PEG (NY)N/A
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 | 0.74 |
F-Score4
WACC7.48%
ROIC/WACC0.91
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 Y-6.93%
EPS Next 2Y82.41%
EPS Next 3Y63.51%
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 2Y25.27%
Revenue Next 3Y20.55%
Revenue Next 5YN/A
EBIT growth 1Y11.66%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year-29.11%
EBIT Next 3Y22.68%
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.
What is the valuation status of UWM HOLDINGS CORP (UWMC) stock?
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.
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%.