UWM HOLDINGS CORP (UWMC) Stock Fundamental Analysis
NYSE:UWMC - New York Stock Exchange, Inc. - US91823B1098 - Common Stock - Currency: USD
UWMC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UWMC had negative 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
The Return On Assets of UWMC (-0.06%) is worse than 77.23% of its industry peers.
UWMC has a Return On Equity of -4.86%. This is amonst the worse of the industry: UWMC underperforms 81.19% of its industry peers.
With a decent Return On Invested Capital value of 7.74%, UWMC is doing good in the industry, outperforming 75.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UWMC is below the industry average of 11.69%.
The last Return On Invested Capital (7.74%) for UWMC is above the 3 year average (6.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -4.86% | ||
| ROIC | 7.74% |
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 has declined in the last couple of years.
UWMC has a Operating Margin of 47.63%. This is amongst the best in the industry. UWMC outperforms 89.11% of its industry peers.
UWMC's Operating Margin has improved in the last couple of years.
The Gross Margin of UWMC (88.41%) is better than 92.08% 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 | 47.63% | ||
| PM (TTM) | N/A | ||
| GM | 88.41% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UWMC is still creating some value.
Compared to 1 year ago, UWMC has about the same amount of shares outstanding.
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
UWMC has an Altman-Z score of 0.77. This is a bad value and indicates that UWMC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of UWMC (0.77) is comparable to the rest of the industry.
A Debt/Equity ratio of 69.59 is on the high side and indicates that UWMC has dependencies on debt financing.
The Debt to Equity ratio of UWMC (69.59) is worse than 93.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 69.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC1.07
WACC7.22%
2.3 Liquidity
UWMC has a Current Ratio of 0.82. This is a bad value and indicates that UWMC is not financially healthy enough and could expect problems in meeting its short term obligations.
UWMC has a Current ratio (0.82) which is in line with its industry peers.
A Quick Ratio of 0.82 indicates that UWMC may have some problems paying its short term obligations.
UWMC has a Quick ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
UWMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -158.33%.
The earnings per share for UWMC have been decreasing by -49.74% on average. This is quite bad
The Revenue has grown by 19.96% in the past year. This is quite good.
UWMC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.91% yearly.
EPS 1Y (TTM)-158.33%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%-233.33%
Revenue 1Y (TTM)19.96%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%7.62%
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 66.72% 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 18.57% on average per year.
EPS Next Y110.66%
EPS Next 2Y87.7%
EPS Next 3Y66.72%
EPS Next 5YN/A
Revenue Next Year17.49%
Revenue Next 2Y19.93%
Revenue Next 3Y18.57%
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
UWMC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
UWMC is valuated reasonably with a Price/Forward Earnings ratio of 8.33.
63.37% of the companies in the same industry are more expensive than UWMC, based on the Price/Forward Earnings ratio.
UWMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UWMC is valued a bit cheaper than the industry average as 61.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.91 |
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 66.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y87.7%
EPS Next 3Y66.72%
5. Dividend
5.1 Amount
UWMC has a Yearly Dividend Yield of 9.66%, which is a nice return.
The stock price of UWMC dropped by -36.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
UWMC's Dividend Yield is rather good when compared to the industry average which is at 4.87. UWMC pays more dividend than 95.05% of the companies in the same industry.
UWMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
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
The earnings of UWMC are negative and hence is the payout ratio. UWMC will probably not be able to sustain this dividend level.
DP-576.68%
EPS Next 2Y87.7%
EPS Next 3Y66.72%
4.11
+0.14 (+3.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners56.32%
Inst Owner Change41.1%
Ins Owners0.85%
Ins Owner Change11.87%
Market Cap6.57B
Analysts75.29
Price Target7.14 (73.72%)
Short Float %13.53%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP-576.68%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-209.95%
Min EPS beat(2)-319.9%
Max EPS beat(2)-100%
EPS beat(4)0
Avg EPS beat(4)-137.28%
Min EPS beat(4)-319.9%
Max EPS beat(4)-42.07%
EPS beat(8)3
Avg EPS beat(8)-116.56%
EPS beat(12)5
Avg EPS beat(12)-60.82%
EPS beat(16)7
Avg EPS beat(16)-33.53%
Revenue beat(2)1
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-12.14%
Max Revenue beat(2)7.92%
Revenue beat(4)1
Avg Revenue beat(4)-5.41%
Min Revenue beat(4)-12.14%
Max Revenue beat(4)7.92%
Revenue beat(8)4
Avg Revenue beat(8)-10.88%
Revenue beat(12)7
Avg Revenue beat(12)-3.18%
Revenue beat(16)11
Avg Revenue beat(16)2.97%
PT rev (1m)2.56%
PT rev (3m)2.56%
EPS NQ rev (1m)-21.88%
EPS NQ rev (3m)-35.09%
EPS NY rev (1m)-17.1%
EPS NY rev (3m)-31.14%
Revenue NQ rev (1m)-4.29%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)-6.55%
Revenue NY rev (3m)-5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.33 | ||
| P/S | 2.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 39.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.91 |
EPS(TTM)-0.07
EYN/A
EPS(NY)0.49
Fwd EY12%
FCF(TTM)-2.19
FCFYN/A
OCF(TTM)-2.15
OCFYN/A
SpS1.69
BVpS0.1
TBVpS-1.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -4.86% | ||
| ROCE | 9.86% | ||
| ROIC | 7.74% | ||
| ROICexc | 8.04% | ||
| ROICexgc | 12.2% | ||
| OM | 47.63% | ||
| PM (TTM) | N/A | ||
| GM | 88.41% | ||
| 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-Score1
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 69.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.59 | ||
| Cap/Depr | 102.37% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 0.77 |
F-Score1
WACC7.22%
ROIC/WACC1.07
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)-158.33%
EPS 3Y-42.85%
EPS 5Y-49.74%
EPS Q2Q%-233.33%
EPS Next Y110.66%
EPS Next 2Y87.7%
EPS Next 3Y66.72%
EPS Next 5YN/A
Revenue 1Y (TTM)19.96%
Revenue growth 3Y-9.08%
Revenue growth 5Y15.91%
Sales Q2Q%7.62%
Revenue Next Year17.49%
Revenue Next 2Y19.93%
Revenue Next 3Y18.57%
Revenue Next 5YN/A
EBIT growth 1Y13.32%
EBIT growth 3Y-18.51%
EBIT growth 5Y18.21%
EBIT Next Year13.7%
EBIT Next 3Y29.84%
EBIT Next 5YN/A
FCF growth 1Y-129.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-131.04%
OCF growth 3YN/A
OCF growth 5YN/A