UWM Holding (UWMC) AI Stock Analysis

• Market Cap: $9.53B
• Dividend Yield: 6.67%
• Average Volume (3M): 3.27M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.58
• Revenue Growth: 12.29%
• EPS Growth: N/A
• Country: US
• Employees: 6,700
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 0.06
• Shares Outstanding: 157,975,810
• 10 Day Avg. Volume: 4,710,200
• 30 Day Avg. Volume: 3,266,953
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.46
• Price to Cash Flow (P/CF): -4.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.09
• Price Target Upside: 18.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

UWM Holding's overall stock score reflects a balance of operational strengths and financial challenges. While profitability and strategic investments offer positive momentum, concerns about liquidity, flat revenue growth, and high valuation present risks. The positive earnings call and dividend announcement further support the stock's potential, but caution is advised given market conditions.

Positive Factors

Market Position

UWMC appears poised to be one of the main beneficiaries of a normalizing mortgage market given its dominant position in the purchase market and increasing share in the refi market.

Market Share Growth

Analysts are encouraged by UWMC's recent market share gains in the refi channel.

Negative Factors

Financial Performance

The 2025 EPS estimate is moving lower after incorporating the 1Q guide, lower investment income, and slightly higher run-rate expenses.

UWM Holding Business Overview & Revenue Model

Company Description

UWM Holdings Corporation (UWMC) is a prominent wholesale mortgage lender in the United States, focusing primarily on the origination and servicing of residential mortgage loans. The company, operating through its subsidiary United Wholesale Mortgage, is dedicated to providing independent mortgage advisors, brokers, and financial institutions with a comprehensive suite of lending products and services. UWM's offerings include a variety of residential mortgage options, such as conventional, government, and jumbo loans, with a strong emphasis on leveraging technology to streamline the mortgage process and enhance client services.

How the Company Makes Money

UWM Holdings generates revenue primarily by originating and servicing residential mortgage loans. The company's business model is centered around the wholesale lending channel, where it partners with independent brokers and financial institutions to reach borrowers. UWM earns money through the fees associated with the origination of loans, which include closing costs, application fees, and underwriting fees. Additionally, the company generates income by selling mortgages into the secondary market, often bundling them into mortgage-backed securities. Furthermore, UWM derives revenue from servicing loans, earning fees for managing the collection of payments and other administrative tasks on behalf of investors. The company's focus on technological innovation and efficient processes allows it to maintain competitive pricing and attract significant business volume in the mortgage industry.

UWM Holding Financial Statement Overview

Summary

UWM Holding's financial performance shows mixed results. The income statement indicates operational efficiency with improved profitability, but flat revenue growth and cash flow challenges raise concerns. The balance sheet shows improved leverage but low equity levels, and the cash flow statement highlights liquidity issues.

Income Statement

UWM Holding's income statement shows a mixed performance. The gross profit margin is strong due to high gross profit relative to revenue. However, net profit margin is volatile, with a significant improvement from a loss in the previous year to a positive net income in the current year. The revenue growth rate is flat, indicating no significant change in total revenue over the past year. EBIT margin is robust, reflecting efficient core operations. EBITDA margin has decreased, suggesting higher depreciation or interest expenses.

Balance Sheet

The balance sheet presents stability concerns for UWM Holding. The debt-to-equity ratio has improved significantly due to reduced total debt and increased equity, indicating better leverage management. However, the equity ratio remains low, reflecting a high proportion of liabilities relative to total assets. Return on equity has improved dramatically, driven by the transition from a net loss to positive earnings, but the absolute level of equity remains low, posing potential risk.

Cash Flow

Cash flow analysis reveals challenges. The operating cash flow is negative, signaling potential liquidity concerns. Free cash flow has declined sharply, showing a significant drop in cash available after capital expenditures. The ratio of operating cash flow to net income is negative, indicating cash flow issues despite reported net income. There is no growth in free cash flow, which suggests challenges in generating cash from operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.16B	2.17B	1.81B	1.81B	2.53B
	Gross Profit
2.16B	1.88B	1.51B	1.72B	2.53B
	EBIT
1.86B	1.09B	1.24B	354.68M	108.29M
	EBITDA
872.19M	1.14B	1.03B	1.04B	0.00
	Net Income Common Stockholders
14.40M	-13.23M	41.72M	931.86M	1.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
610.35M	497.47M	818.19M	818.19M	731.09M
	Total Assets
15.67B	11.87B	13.60B	13.60B	22.53B
	Total Debt
3.50B	8.73B	9.43B	9.43B	18.11B
	Net Debt
2.99B	8.23B	8.73B	8.73B	17.38B
	Total Liabilities
13.62B	9.40B	10.43B	10.43B	19.36B
	Stockholders Equity
2.05B	112.55M	143.56M	143.56M	142.40M
Cash Flow		Free Cash Flow
-6.24B	138.81M	8.24B	8.24B	-10.02B
	Operating Cash Flow
-6.24B	165.24M	8.27B	8.27B	-9.96B
	Investing Cash Flow
2.68B	1.83B	1.29B	1.29B	199.75M
	Financing Cash Flow
3.58B	-2.20B	-9.58B	-9.58B	9.26B

UWM Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UWMC, the sentiment is Negative. The current price of 5.96 is below the 20-day moving average (MA) of 6.34, below the 50-day MA of 6.12, and below the 200-day MA of 6.99, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 34.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UWMC.

UWM Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COOP	72 Outperform	$6.31B	9.74	14.71%	―	22.89%	39.00%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
RKT	60 Neutral	$26.31B	78.31	4.43%	―	30.23%	―
UWMC	58 Neutral	$9.53B	46.40	10.51%	6.67%	12.29%	―

UWM Holding Corporate Events

UWM Holding Announces Cash Dividend and Strong 2024 Results

On February 26, 2025, UWM Holdings Corporation announced a cash dividend of $0.10 per share for Class A common stock, payable on April 10, 2025. The company also reported its financial results for the fourth quarter and full year 2024, highlighting a total loan origination volume of $139.4 billion and a net income of $329.4 million for the year. Despite a challenging market environment, UWM achieved a record year in purchase production and significantly increased its refinance volume, showcasing its strong industry positioning and operational resilience.