UWM Holding (UWMC) AI Stock Analysis

• Market Cap: $6.78B
• Dividend Yield: 9.09%
• Average Volume (3M): 7.08M
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.83
• Revenue Growth: 9.19%
• EPS Growth: -171.38%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Mortgages
• EPS (TTM): -0.12
• Shares Outstanding: 201,418,440
• 10 Day Avg. Volume: 7,061,016
• 30 Day Avg. Volume: 7,075,475
• PEG Ratio: -0.68
• Price to Book (P/B): 4.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.81
• Enterprise Value/Market Cap: 9.27
• Enterprise Value/Revenue: 8.16
• Enterprise Value/Gross Profit: 43.84
• Enterprise Value/Ebitda: 21.04
• 1Y Price Target: $6.40
• Price Target Upside: 45.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 47 Neutral
• Price Target: $4.00 ▼(-9.09%Downside)

The most significant factor affecting UWM's score is its financial performance, characterized by declining revenues, high leverage, and negative cash flows. While the earnings call provided some positive outlooks with strategic initiatives and operational improvements, the overall financial health remains a concern. Technical indicators are neutral, and valuation metrics reflect recent losses. The company's ability to execute strategic adjustments is crucial for future performance.

Positive Factors

Interest Rate Changes

If expected Fed rate cuts occur, they could relieve mortgage rates and boost originations, potentially providing momentum to the company's bottom line.

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.

Technology Enhancements

Official launch of 'Mia', industry's first AI-generated loan officer calling assistant, which could boost volumes and enhance broker efficiency.

Negative Factors

AI Implementation Challenges

The effectiveness of 'Mia' is uncertain as customers and/or brokers may be resistant to an AI assistant making phone calls.

Earnings and Expenses

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

Market Performance

Long-term view shows the stock has fallen 9.9% since the end of 2023, trailing significant gains in the S&P 500 and the Russell 3000.

UWM Holding Business Overview & Revenue Model

Company Description

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company originates mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.

How the Company Makes Money

UWM Holding Corp. generates revenue primarily through the origination and sale of residential mortgage loans. The company earns money by charging fees for loan origination, underwriting, and servicing. Additionally, UWM Holding profits from the sale of these loans on the secondary market, often to government-sponsored enterprises like Fannie Mae and Freddie Mac. The company also benefits from its strategic partnerships with a vast network of independent mortgage brokers, which enhances its ability to reach a large pool of potential borrowers and maintain a high volume of loan originations. These partnerships, along with a focus on technology and efficient loan processing, contribute significantly to the company's revenue streams.

UWM Holding Financial Statement Overview

Summary

UWM Holding faces significant financial challenges with declining revenues, high leverage, and negative cash flows. While some operational efficiencies are present, the company's financial health is unstable, requiring strategic adjustments to improve profitability and sustainability.

Income Statement

The income statement shows fluctuating performance with a notable decline in total revenue from the previous annual period. The gross profit margin has decreased from prior periods, suggesting potential cost control issues. Net profit margin is low and has shown volatility, indicating unstable profitability. Revenue growth is negative, highlighting a challenge in maintaining sales momentum. However, EBIT and EBITDA margins remain reasonably healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a highly leveraged position with a high debt-to-equity ratio, suggesting significant financial risk. Return on equity is low, indicating poor returns for shareholders. The equity ratio is also low, underscoring the company's reliance on debt financing. The company needs to address its capital structure for better financial stability.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow and operating cash flow, indicating issues with liquidity and cash management. The free cash flow to net income ratio is negative, highlighting cash flow inadequacy to cover profits. However, the operating cash flow to net income ratio shows potential for improvement if operational adjustments are made.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.16B	2.17B	1.84B	2.53B	2.53B
Gross Profit	1.42B	1.88B	1.84B	2.53B	2.53B
EBITDA	384.73M	1.14B	0.00	0.00	0.00
Net Income	14.40M	-13.23M	41.72M	98.44M	1.57B
Balance Sheet
Total Assets	15.67B	11.87B	13.60B	13.60B	22.53B
Cash, Cash Equivalents and Short-Term Investments	610.35M	497.47M	818.19M	818.19M	731.09M
Total Debt	12.84B	8.73B	9.43B	9.43B	18.11B
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	-6.28B	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: Positive
• Last Price: 4.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UWMC, the sentiment is Positive. The current price of 4.4 is above the 20-day moving average (MA) of 4.20, above the 50-day MA of 4.12, and below the 200-day MA of 5.34, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 70.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UWMC.

UWM Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COOP	71 Outperform	$9.63B	18.26	12.39%	―	6.44%	-7.86%
Sector *	68 Neutral	$16.89B	11.69	9.78%	3.90%	11.76%	-7.55%
PFSI	63 Neutral	$5.21B	15.48	9.32%	1.18%	23.79%	121.61%
GHLD	57 Neutral	$1.24B	28.59	3.71%	2.52%	42.92%	64.72%
RKT	55 Neutral	$29.43B	68.51	0.45%	―	24.58%	-88.86%
LDI	48 Neutral	$620.23M	―	-29.48%	―	3.76%	16.19%
UWMC	47 Neutral	$6.78B	37.74	-5.74%	9.09%	9.19%	-171.38%

UWM Holding Corporate Events

UWM Holding Concludes Annual Stockholders Meeting

On June 4, 2025, UWM Holdings Corporation conducted its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and financial oversight. Stockholders voted to elect three directors to serve until 2028, ratified Deloitte & Touche, LLP as the independent auditor for the fiscal year ending December 31, 2025, and approved the executive compensation package on an advisory basis. These decisions reflect the company’s ongoing commitment to maintaining strong leadership and financial accountability, potentially impacting its operational stability and investor confidence.

The most recent analyst rating on (UWMC) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on UWM Holding stock, see the UWMC Stock Forecast page.

UWM Holding Announces Cash Dividend Amidst Q1 Loss

On May 6, 2025, UWM Holdings Corporation announced a cash dividend of $0.10 per share for Class A common stock, payable on July 10, 2025. The company reported first-quarter 2025 results with a loan origination volume of $32.4 billion, marking a 17% increase year-over-year. Despite this growth, UWM experienced a net loss of $247 million, attributed to a decline in the fair value of mortgage servicing rights. The company’s strategic focus remains on long-term value creation, leveraging its ability to quickly adapt to market changes.