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Guild Holdings Co. (GHLD)
:GHLD
US Market
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Guild Holdings (GHLD) AI Stock Analysis

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GHLD

Guild Holdings

(NYSE:GHLD)

Rating:58Neutral
Price Target:
$21.00
▲(5.47% Upside)
Guild Holdings' overall stock score reflects a balance of mixed financial performance and technical indicators. The company's high leverage and liquidity issues are significant risks, while recent corporate events and strategic initiatives provide potential upside. The stock's current overvaluation adds to the cautious outlook.
Positive Factors
Acquisition
Guild announced it has agreed to be acquired by Bayview Asset Management for $20/share, representing a 27% premium to GHLD's tangible book value.
Business Model
If calibrated properly, Bayview's MSR portfolio could be leveraged by GHLD's successful direct-to-consumer origination model, which emphasizes a 'high touch' approach with the borrower.
Negative Factors
Market Competition
Beneath GHLD is still a wide and very scattered field of small originators and de-novo networks of loan officers, whose 'distributed retail' model can easily plug into a company like Guild's.

Guild Holdings (GHLD) vs. SPDR S&P 500 ETF (SPY)

Guild Holdings Business Overview & Revenue Model

Company DescriptionGuild Holdings Company, a mortgage company, originates, sells, and services residential mortgage loans in the United States. The company operates approximately 260 branches with licenses in 49 states. It originates residential mortgages through retail and correspondent channels. The company was incorporated in 1960 and is headquartered in San Diego, California.
How the Company Makes MoneyGuild Holdings makes money primarily through the origination, sale, and servicing of residential mortgage loans. The company generates revenue from loan origination fees, gain on sale of loans to the secondary market, and servicing income from managing the ongoing relationship with borrowers and collecting payments. Key revenue streams include the fees charged during the loan origination process, premiums received when selling loans to investors, and recurring servicing fees. The company's earnings are influenced by factors such as interest rates, housing market conditions, and its ability to effectively manage loan servicing operations. Additionally, Guild Holdings may engage in strategic partnerships with real estate agents and homebuilders to drive loan origination volumes.

Guild Holdings Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call demonstrated strong growth in loan originations and positive adjusted financial metrics, indicating successful strategic execution and operational improvements. However, the company faced challenges in the servicing segment and reported an overall net loss. Despite these challenges, the company's strategic positioning and operational efficiency provide a foundation for future growth.
Q1-2025 Updates
Positive Updates
Significant Growth in Originations
Guild Holdings achieved a 35% year-over-year growth in originations, reaching $5.2 billion in the first quarter of 2025.
Positive Adjusted EBITDA and Net Income
The company reported a positive adjusted EBITDA of $36.4 million and adjusted net income of $21.6 million for the quarter.
Expansion of Servicing Portfolio
The servicing portfolio expanded to over $94 billion, providing financial stability and supporting the 'customers for life' strategy.
Improved Gain on Sale Margins
Gain on sale margin for the first quarter was 376 basis points, compared to 364 basis points in the prior year first quarter.
Strong Loan Officer Productivity
Guild's loan officers experienced 30% more productivity than the industry average, according to MMI records.
Negative Updates
Net Loss in Servicing Segment
Reported a net loss of $5 million in the servicing segment due to a $70 million downward valuation adjustment of MSRs.
Decrease in Net Revenue
Net revenue decreased to $198 million compared to $232 million in the prior year and $373 million in the fourth quarter.
Overall Net Loss
Guild reported a net loss attributable to the company of $24 million, compared to a net income of $28 million in the prior year.
Company Guidance
During the first quarter of 2025, Guild Holdings Company reported significant achievements, including a 35% year-over-year growth in loan originations, reaching $5.2 billion. The company also delivered positive adjusted EBITDA of $36.4 million and adjusted net income of $21.6 million. Their servicing portfolio expanded to over $94 billion, providing financial stability and reinforcing their customer for life strategy. Despite market volatility, Guild maintained a strong balance sheet with cash and cash equivalents of $112 million and a leverage ratio of 1.6x. Additionally, they repurchased approximately 35,000 shares at an average price of $12.94 per share. Guild remains optimistic about their strategic direction and plans to continue leveraging their balanced business model to capitalize on growth opportunities through organic recruiting and strategic acquisitions.

Guild Holdings Financial Statement Overview

Summary
Guild Holdings exhibits mixed financial performance. Modest revenue growth is overshadowed by declining profitability margins, high leverage, and liquidity challenges. Despite improvements in free cash flow, the company's financial stability is at risk due to high debt levels and negative operating cash flow.
Income Statement
55
Neutral
Guild Holdings shows a mixed performance in its income statement. The TTM data reveals a modest revenue growth rate of 3.26%, indicating a slight recovery from previous declines. However, the gross profit margin has decreased significantly from 90.65% in 2024 to 73.91% in TTM, suggesting increased costs or pricing pressures. The net profit margin also dropped to 2.37% in TTM from 8.27% in 2024, reflecting reduced profitability. While EBIT and EBITDA margins have also declined, they remain positive, indicating operational efficiency. Overall, the company faces challenges in maintaining high profitability levels.
Balance Sheet
60
Neutral
The balance sheet of Guild Holdings indicates a high leverage position with a debt-to-equity ratio of 2.72 in TTM, up from 2.42 in 2024, which could pose financial risks. The return on equity has decreased to 2.14% in TTM from 7.75% in 2024, reflecting lower profitability on shareholders' investments. The equity ratio stands at 24.19%, indicating a moderate level of equity financing. While the company has a strong asset base, the increasing debt levels and declining ROE suggest potential financial stability concerns.
Cash Flow
45
Neutral
Guild Holdings' cash flow statement reveals significant challenges. The operating cash flow is negative at -$648.68 million in TTM, and free cash flow is also negative, although it shows a notable improvement with a 74.09% growth rate. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is in line with net income. Despite improvements in free cash flow, the overall negative cash flow position raises concerns about liquidity and operational sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.09B1.17B721.55M1.16B1.56B1.56B
Gross Profit805.59M1.06B721.55M473.93M1.53B1.68B
EBITDA93.69M156.84M59.49M840.77M486.15M619.94M
Net Income25.81M97.13M-39.01M328.60M283.77M370.58M
Balance Sheet
Total Assets5.03B4.77B3.68B3.24B4.38B4.82B
Cash, Cash Equivalents and Short-Term Investments107.36M118.20M136.82M137.89M243.11M334.62M
Total Debt3.32B3.03B2.06B1.58B3.01B2.39B
Total Liabilities3.82B3.51B2.49B1.99B3.46B4.08B
Stockholders Equity1.22B1.25B1.18B1.25B919.98M735.99M
Cash Flow
Free Cash Flow-659.26M-668.99M-97.23M1.26B675.85M-476.27M
Operating Cash Flow-648.68M-659.62M-91.72M1.26B680.46M-468.04M
Investing Cash Flow469.05M-152.39M-136.60M-7.18M-104.66M-18.02M
Financing Cash Flow186.26M809.69M208.95M-1.35B-667.31M718.96M

Guild Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.91
Price Trends
50DMA
19.67
Positive
100DMA
16.54
Positive
200DMA
14.65
Positive
Market Momentum
MACD
0.19
Positive
RSI
71.09
Negative
STOCH
48.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHLD, the sentiment is Positive. The current price of 19.91 is above the 20-day moving average (MA) of 19.82, above the 50-day MA of 19.67, and above the 200-day MA of 14.65, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 71.09 is Negative, neither overbought nor oversold. The STOCH value of 48.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GHLD.

Guild Holdings Risk Analysis

Guild Holdings disclosed 48 risk factors in its most recent earnings report. Guild Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Guild Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$17.88B11.6810.28%3.72%9.78%1.27%
68
Neutral
$733.41M8.7315.02%35.12%25.28%
67
Neutral
$2.90B26.236.26%3.13%11.18%24.94%
67
Neutral
$5.69B15.2610.05%1.09%20.77%96.22%
61
Neutral
$37.40B68.51>-0.01%21.52%-103.65%
58
Neutral
$1.24B51.052.12%2.49%34.62%-7.94%
57
Neutral
$708.18M-23.67%6.60%44.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GHLD
Guild Holdings
19.91
4.41
28.45%
WD
Walker & Dunlop
85.05
-16.73
-16.44%
PFSI
PennyMac Financial
110.10
5.38
5.14%
LDI
loanDepot
2.14
-0.51
-19.25%
VEL
Velocity Financial
19.08
-0.02
-0.10%
RKT
Rocket Companies
17.77
-0.78
-4.20%

Guild Holdings Corporate Events

DividendsFinancial Disclosures
Guild Holdings Declares Special Cash Dividend
Positive
Aug 7, 2025

Guild Holdings Company reported strong financial results for the second quarter of 2025, with total originations reaching $7.5 billion, a significant increase from previous quarters. The company achieved a net income of $18.7 million and an adjusted net income of $41.4 million, highlighting the success of its strategic focus on growth and efficiency. The board of directors also declared a special cash dividend of $0.25 per share, payable on September 2, 2025, indicating confidence in the company’s financial health and commitment to returning value to shareholders.

M&A Transactions
Guild Holdings Announces Merger with Gulf MSR HoldCo
Neutral
Jun 20, 2025

On June 17, 2025, Guild Holdings Company entered into a Merger Agreement with Gulf MSR HoldCo, LLC and Gulf MSR Merger Sub Corporation, resulting in Guild Holdings becoming a wholly-owned subsidiary of Gulf MSR HoldCo. The merger, unanimously approved by Guild Holdings’ board, involves converting each share of common stock into $20.00 in cash, with potential dividends not affecting this consideration. The merger is expected to complete in the fourth quarter of 2025, pending regulatory approvals and other conditions. McCarthy Capital Mortgage Investors, LLC, holding a majority of voting power, has already consented to the merger, ensuring necessary stockholder approval. The merger is not subject to financing conditions, and termination fees are stipulated for both parties under certain circumstances.

M&A TransactionsBusiness Operations and Strategy
Guild Holdings Announces Merger with Gulf MSR
Positive
Jun 18, 2025

On June 17, 2025, Guild Holdings Company announced a merger agreement with Gulf MSR Holdco, LLC, under which Guild will become a wholly-owned subsidiary of Gulf MSR. Guild stockholders will receive $20 per share in cash, a premium to its previous stock price. The transaction, valued at approximately $1.3 billion, will see Guild operate as a private entity in partnership with Lakeview Loan Servicing. The merger is expected to enhance Guild’s mortgage origination and servicing platform, providing growth opportunities without altering its current operations or brand. The transaction is anticipated to close in the fourth quarter of 2025.

Executive/Board ChangesShareholder Meetings
Guild Holdings Stockholders Approve Key Amendments
Neutral
Jun 2, 2025

On May 27, 2025, Guild Holdings Company, a player in the financial sector, held its Annual Meeting of Stockholders where key decisions were made. The stockholders approved an amendment to limit the monetary liability of the company’s officers, aligning with Delaware law, and ratified the appointment of KPMG LLP as the independent accounting firm for the fiscal year ending December 31, 2025. Additionally, they voted in favor of the compensation of the company’s named executive officers and elected two Class II directors to serve until the 2028 Annual Meeting.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025