UWM HOLDINGS CORP (UWMC)
US91823B1098 - Common Stock
Taking everything into account, UWMC scores 4 out of 10 in our fundamental rating. UWMC was compared to 102 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. While showing a medium growth rate, UWMC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year UWMC has reported negative net income.
UWMC had a positive operating cash flow in the past year.
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
UWMC has a Return On Assets of -0.11%. This is in the lower half of the industry: UWMC underperforms 65.69% of its industry peers.
The Return On Equity of UWMC (-11.71%) is worse than 73.53% of its industry peers.
The Return On Invested Capital of UWMC (7.79%) is better than 79.41% of its industry peers.
UWMC had an Average Return On Invested Capital over the past 3 years of 7.60%. This is in line with the industry average of 7.93%.
The 3 year average ROIC (7.60%) for UWMC is below the current ROIC(7.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.11% | ||
| ROE | -11.71% | ||
| ROIC | 7.79% |
ROA(3y)0.21%
ROA(5y)7.26%
ROE(3y)28.83%
ROE(5y)58.36%
ROIC(3y)7.6%
ROIC(5y)11.34%
1.3 Margins
UWMC's Operating Margin of 50.71% is amongst the best of the industry. UWMC outperforms 89.22% of its industry peers.
In the last couple of years the Operating Margin of UWMC has grown nicely.
With an excellent Gross Margin value of 89.10%, UWMC belongs to the best of the industry, outperforming 92.16% 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 | 50.71% | ||
| PM (TTM) | N/A | ||
| GM | 89.1% |
OM growth 3Y-11%
OM growth 5Y11.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.95%
GM growth 5Y-0.79%
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.
Compared to 1 year ago, UWMC has less shares outstanding
UWMC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UWMC is higher compared to a year ago.
2.2 Solvency
UWMC has an Altman-Z score of 1.01. This is a bad value and indicates that UWMC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.01, UWMC is doing good in the industry, outperforming 60.78% of the companies in the same industry.
UWMC has a debt to FCF ratio of 62.11. This is a negative value and a sign of low solvency as UWMC would need 62.11 years to pay back of all of its debts.
With a Debt to FCF ratio value of 62.11, UWMC perfoms like the industry average, outperforming 46.08% of the companies in the same industry.
UWMC has a Debt/Equity ratio of 76.60. This is a high value indicating a heavy dependency on external financing.
UWMC has a Debt to Equity ratio of 76.60. This is amonst the worse of the industry: UWMC underperforms 96.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 76.6 | ||
| Debt/FCF | 62.11 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.12
WACC6.98%
2.3 Liquidity
UWMC has a Current Ratio of 1.00. This is a normal value and indicates that UWMC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.00, UWMC is in line with its industry, outperforming 42.16% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that UWMC should not have too much problems paying its short term obligations.
UWMC has a Quick ratio (1.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for UWMC have decreased strongly by -108.89% in the last year.
Looking at the last year, UWMC shows a small growth in Revenue. The Revenue has grown by 3.69% in the last year.
The Revenue has been growing by 29.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-108.89%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-666.67%
Revenue 1Y (TTM)3.69%
Revenue growth 3Y-24.03%
Revenue growth 5Y29.56%
Revenue growth Q2Q14.7%
3.2 Future
The Earnings Per Share is expected to grow by 151.22% on average over the next years. This is a very strong growth
UWMC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.41% yearly.
EPS Next Y918.32%
EPS Next 2Y256.4%
EPS Next 3Y151.22%
EPS Next 5YN/A
Revenue Next Year19.86%
Revenue Next 2Y18.96%
Revenue Next 3Y14.41%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for UWMC. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 19.52, the valuation of UWMC can be described as rather expensive.
UWMC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, UWMC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
UWMC's Enterprise Value to EBITDA ratio is in line with the industry average.
UWMC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.5 | ||
| EV/EBITDA | 15.75 |
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.
A more expensive valuation may be justified as UWMC's earnings are expected to grow with 151.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y256.4%
EPS Next 3Y151.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.26%, UWMC is a good candidate for dividend investing.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 3.60. UWMC pays more dividend than 91.18% of the companies in the same industry.
UWMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
5.2 History
UWMC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
UWMC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-282.62%
EPS Next 2Y256.4%
EPS Next 3Y151.22%
UWM HOLDINGS CORP
NYSE:UWMC (5/1/2024, 7:04:00 PM)
After market: 6.39 0 (0%)6.39
+0.09 (+1.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.11% | ||
| ROE | -11.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 50.71% | ||
| PM (TTM) | N/A | ||
| GM | 89.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 76.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-108.89%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y918.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.69%
Revenue growth 3Y-24.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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