UWM Holding (UWMC) AI Stock Analysis

• Market Cap: $9.12B
• Dividend Yield: 7.02%
• Average Volume (3M): 9.41M
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.88
• Revenue Growth: 12.27%
• EPS Growth: -21.43%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Mortgages
• EPS (TTM): 0.16
• Shares Outstanding: 218,635,130
• 10 Day Avg. Volume: 8,651,759
• 30 Day Avg. Volume: 9,412,897
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 6.98
• Enterprise Value/Gross Profit: 10.07
• Enterprise Value/Ebitda: 67.77
• 1Y Price Target: $6.40
• Price Target Upside: 12.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $6.00 ▲(5.26% Upside)

UWM Holding's overall stock score is primarily influenced by its financial challenges, including high leverage and negative cash flows. However, strong technical indicators and positive earnings call sentiment provide some optimism. The attractive dividend yield and strategic investments in technology are positive factors, but the negative P/E ratio and overbought technical indicators suggest caution.

Positive Factors

Innovation

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

Market Position

Already at an industry-leading ~43% share of the broker market, UWM's growth strategy includes new AI-driven tools that could lead to substantial incremental earnings.

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.

Technology Adoption

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

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 generates revenue primarily through the origination and sale of mortgage loans. The company earns money by charging origination fees, which are typically a percentage of the loan amount, and by selling mortgages to investors in the secondary market, often at a premium. Additionally, UWMC benefits from interest income on loans held in its portfolio before they are sold. The company's revenue model is significantly bolstered by its relationships with thousands of independent mortgage brokers, who rely on UWMC for competitive pricing and efficient service. Strategic partnerships with investors and technology providers also enhance its operational efficiency and revenue potential.

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 needs strategic adjustments to improve profitability and stabilize its financial health. Addressing debt levels and enhancing revenue growth are crucial for future 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.91B	1.11B	2.15B	2.83B	4.85B
Gross Profit	1.31B	1.37B	755.02M	1.81B	2.48B	4.65B
EBITDA	194.17M	384.73M	-26.23M	984.07M	1.62B	3.96B
Net Income	11.85M	14.40M	-13.23M	41.72M	98.44M	3.38B
Balance Sheet
Total Assets	13.89B	15.67B	11.87B	13.60B	13.60B	22.53B
Cash, Cash Equivalents and Short-Term Investments	591.61M	610.35M	497.47M	818.19M	818.19M	731.09M
Total Debt	0.00	12.84B	8.73B	9.43B	9.43B	18.11B
Total Liabilities	12.14B	13.62B	9.40B	10.43B	10.43B	19.36B
Stockholders Equity	1.75B	161.52M	112.55M	143.56M	143.56M	142.40M
Cash Flow
Free Cash Flow	-2.17B	-6.28B	138.81M	8.24B	8.24B	-10.02B
Operating Cash Flow	-2.13B	-6.24B	165.24M	8.27B	8.27B	-9.96B
Investing Cash Flow	1.26B	2.68B	1.83B	1.29B	1.29B	199.75M
Financing Cash Flow	671.95M	3.58B	-2.20B	-9.58B	-9.58B	9.26B

UWM Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.7 is above the 20-day moving average (MA) of 5.27, above the 50-day MA of 4.65, and above the 200-day MA of 5.10, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 56.45 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
Sector *	68 Neutral	$17.95B	11.54	10.27%	3.74%	9.64%	1.17%
PFSI	67 Neutral	$5.69B	15.26	10.05%	1.09%	20.77%	96.22%
COOP	65 Neutral	$12.06B	21.56	11.76%	―	2.27%	-17.46%
RKT	61 Neutral	$37.40B	68.51	>-0.01%	―	21.52%	-103.65%
GHLD	58 Neutral	$1.24B	51.05	2.12%	2.49%	34.62%	-7.94%
LDI	57 Neutral	$708.18M	―	-23.67%	―	6.60%	44.77%
UWMC	56 Neutral	$9.12B	37.74	8.18%	7.02%	12.27%	-21.43%

UWM Holding Corporate Events

UWM Holding Announces Cash Dividend for Class A Stock

On August 7, 2025, UWM Holdings Corporation announced a cash dividend of $0.10 per share for Class A common stock, payable on October 9, 2025. The company also reported its second-quarter 2025 financial results, highlighting a net income of $314.5 million and a loan origination volume of $39.7 billion, marking an 18% increase year-over-year. The quarter was noted as the company’s best since 2021, driven by strategic decisions and AI technology investments, which are expected to significantly impact the company’s future trajectory and the wholesale mortgage channel.

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.