UWM Holding (UWMC) AI Stock Analysis

• Market Cap: $7.24B
• Dividend Yield: 7.91%
• Average Volume (3M): 7.24M
• 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: 71
• Industry: Financial - Mortgages
• EPS (TTM): 0.16
• Shares Outstanding: 201,418,440
• 10 Day Avg. Volume: 8,311,778
• 30 Day Avg. Volume: 7,242,562
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 7.92
• Enterprise Value/Gross Profit: 9.18
• Enterprise Value/Ebitda: 70.23
• 1Y Price Target: $6.17
• Price Target Upside: 21.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 52 Neutral
• Price Target: $5.00 ▼(-1.19% Downside)

UWM Holding's overall stock score is primarily influenced by its financial challenges, including high leverage and negative cash flows. However, strong earnings call highlights, such as AI integration and refinancing performance, along with positive corporate events like dividend announcements, provide some optimism. Technical analysis shows mixed signals, with potential overbought conditions despite bullish momentum.

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

UWM shares have appreciated 9.7%, outperforming the peer group median, the S&P 500, and the Russell 3000.

Market Share

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.

Market Trends

Lower expectations for servicing income and continued pressure on mortgage originations are expected due to elevated mortgage rates and tight housing supply.

Technological 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 Holding Corp., operating through its subsidiary United Wholesale Mortgage, is one of the largest wholesale mortgage lenders in the United States. The company operates in the financial services and real estate sectors, with a focus on providing mortgage lending services. Its core offerings include residential mortgage loan products, which the company originates through a network of independent mortgage brokers across the country.

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. The income statement shows fluctuating performance with a decline in total revenue and low net profit margins. The balance sheet is highly leveraged with a high debt-to-equity ratio, indicating financial risk. Cash flow analysis reveals negative free cash flow and liquidity issues. Overall, strategic adjustments are needed to improve profitability and stabilize financial health.

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: 5.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 5.06 is above the 20-day moving average (MA) of 4.35, above the 50-day MA of 4.22, and below the 200-day MA of 5.13, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 71.78 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	69 Neutral	$12.27B	21.92	11.76%	―	2.27%	-17.46%
Sector *	68 Neutral	$17.46B	11.65	10.44%	3.86%	10.36%	1.15%
PFSI	64 Neutral	$5.15B	13.82	10.05%	1.22%	20.77%	96.22%
RKT	58 Neutral	$4.37B	68.51	>-0.01%	―	21.52%	-103.65%
GHLD	57 Neutral	$1.25B	51.41	2.12%	2.48%	34.62%	-7.94%
UWMC	52 Neutral	$7.24B	37.74	8.18%	7.91%	12.27%	-21.43%
LDI	48 Neutral	$635.54M	―	-23.67%	―	6.60%	44.77%

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.

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 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.