UWM Holding (UWMC) AI Stock Analysis

• Market Cap: $8.98B
• Dividend Yield: 7.18%
• Average Volume (3M): 9.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -8.66%
• EPS Growth: N/A
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.07
• Shares Outstanding: 254,803,120
• 10 Day Avg. Volume: 6,582,917
• 30 Day Avg. Volume: 9,242,378
• PEG Ratio: -0.24
• Price to Book (P/B): 4.05
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -0.10
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 8.66
• Enterprise Value/Gross Profit: 12.27
• Enterprise Value/Ebitda: 93.22
• 1Y Price Target: $7.20
• Price Target Upside: 29.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): $2.48B

• Rating: 52 Neutral
• Price Target: $6.00 ▲(7.72% Upside)

UWM Holding's overall stock score is primarily impacted by its financial performance challenges, including high leverage and negative cash flows. However, positive earnings call outcomes, successful corporate events, and a strong dividend yield provide some support. Technical analysis shows mixed signals, with short-term bullish momentum but potential resistance.

Positive Factors

AI Integration Success

The successful integration of AI enhances operational efficiency and customer service, potentially increasing loan closings and market competitiveness.

Record Loan Origination

Record loan origination indicates strong demand and market leadership, supporting revenue growth and reinforcing UWM's competitive position.

Successful Bond Offering

The successful bond offering strengthens UWM's financial position, providing liquidity and flexibility to support strategic initiatives and growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting financial flexibility and increasing vulnerability to market fluctuations.

Negative Cash Flows

Negative cash flows highlight liquidity issues, which can constrain operational capabilities and affect long-term financial stability.

Declining Profit Margins

Declining profit margins suggest operational inefficiencies and challenges in maintaining profitability, impacting long-term financial health.

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 generates revenue primarily through origination fees and interest income from the loans it originates. The company earns money by charging brokers and lenders fees for processing and underwriting mortgage applications. Additionally, UWM benefits from selling the loans it originates to investors in the secondary mortgage market, which can provide a significant profit margin. The company's focus on technology and efficiency allows it to operate at lower costs, enhancing its profitability. Strategic partnerships with various financial institutions and real estate professionals further contribute to its revenue by expanding its market reach and increasing loan volume.

UWM Holding Financial Statement Overview

Summary

UWM Holding faces significant financial challenges, particularly with high leverage and cash flow constraints. While revenue growth is positive, profitability and cash flow metrics indicate underlying operational and financial pressures. The company needs to address its debt levels and improve cash flow generation to enhance financial stability.

Income Statement

UWM Holding's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a modest revenue growth rate of 21.65%, but the net profit margin is low at 0.63%, reflecting challenges in converting revenue into profit. The gross profit margin remains strong at 69.37%, suggesting efficient cost management. However, declining EBIT and EBITDA margins highlight pressure on operating profitability.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 6.43 in the TTM period, indicating potential financial risk. The return on equity is low at 2.16%, suggesting limited returns for shareholders. The equity ratio is weak, reflecting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows negative operating and free cash flows in the TTM period, with a concerning free cash flow growth rate of -29.73%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly positive, but overall cash flow management appears strained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.90B	1.91B	1.11B	2.15B	2.83B	4.85B
Gross Profit	1.34B	1.37B	755.02M	1.81B	2.48B	4.65B
EBITDA	176.07M	384.73M	-26.23M	984.07M	1.62B	3.96B
Net Income	16.89M	14.40M	-13.23M	41.72M	98.44M	3.38B
Balance Sheet
Total Assets	17.02B	15.67B	11.87B	13.60B	22.53B	11.49B
Cash, Cash Equivalents and Short-Term Investments	870.70M	507.34M	497.47M	704.90M	731.09M	1.22B
Total Debt	14.53B	12.84B	8.73B	9.78B	18.79B	8.21B
Total Liabilities	15.44B	13.62B	9.40B	10.43B	19.36B	9.12B
Stockholders Equity	177.67M	161.52M	112.55M	143.56M	142.40M	2.37B
Cash Flow
Free Cash Flow	-3.36B	-6.28B	138.81M	8.24B	-10.02B	-876.00K
Operating Cash Flow	-3.29B	-6.24B	165.24M	8.27B	-9.96B	56.41M
Investing Cash Flow	2.19B	2.68B	1.83B	1.29B	199.75M	231.88M
Financing Cash Flow	1.33B	3.58B	-2.20B	-9.58B	9.26B	802.26M

UWM Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 5.57 is above the 20-day moving average (MA) of 5.44, above the 50-day MA of 5.51, and above the 200-day MA of 5.03, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 18.06 is Positive, 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
GHLD	70 Outperform	$1.24B	50.97	10.53%	―	23.81%	―
PFSI	69 Neutral	$6.59B	13.66	12.55%	0.92%	25.42%	190.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COOP	65 Neutral	―	―	―	―	2.27%	-17.46%
RKT	54 Neutral	$53.47B	242.32	-2.15%	―	22.56%	―
UWMC	52 Neutral	$8.98B	―	11.37%	7.18%	-8.66%	―
LDI	47 Neutral	$879.74M	―	-25.72%	―	3.91%	27.78%

UWM Holding Corporate Events

UWM Holding Announces Cash Dividend for Class A Shares

On November 6, 2025, UWM Holdings Corporation announced a cash dividend of $0.10 per share for Class A common stock, payable on January 8, 2026. The company reported a record loan origination volume of $41.7 billion for the third quarter of 2025, the highest since 2021, alongside a total revenue of $843.3 million and a net income of $12.1 million. UWM is also set to bring servicing in-house by January and has leveraged AI to generate over 14,000 loans, indicating its strong market positioning and commitment to innovation.

UWM Holding Issues $1 Billion Senior Notes

On September 16, 2025, UWM Holdings LLC, a subsidiary of UWM Holdings Corporation, issued $1.0 billion in senior unsecured notes due in 2031 with a 6.250% interest rate. These notes, guaranteed by United Wholesale Mortgage, LLC, aim to strengthen the company’s financial position and offer flexibility in managing debt obligations. The issuance includes provisions for early redemption and is subject to customary covenants, potentially impacting UWM’s financial strategies and stakeholder interests.

UWM Holding Sells $1 Billion in Senior Notes

On September 9, 2025, UWM Holdings Corporation announced that its subsidiary, UWM Holdings, LLC, entered into a Purchase Agreement to sell $1.0 billion of senior unsecured notes due 2031, guaranteed by United Wholesale Mortgage, LLC. The proceeds are intended to repay existing senior notes and reduce outstanding amounts under MSR Facilities. This strategic financial move is expected to strengthen UWM Holdings’ financial position and support its operational goals, reflecting its commitment to maintaining a robust market presence and enhancing stakeholder value.