UWM Holding (UWMC) AI Stock Analysis

• Market Cap: $7.86B
• Dividend Yield: 8.31%
• Average Volume (3M): 10.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• 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: 268,415,470
• 10 Day Avg. Volume: 11,612,315
• 30 Day Avg. Volume: 10,011,142
• 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: 2.09
• Enterprise Value/Revenue: 8.66
• Enterprise Value/Gross Profit: 12.27
• Enterprise Value/Ebitda: 93.22
• 1Y Price Target: $6.79
• Price Target Upside: 39.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): $2.52B

• Rating: 48 Neutral
• Price Target: $5.00 ▲(2.67% Upside)

UWM Holding's overall stock score reflects significant financial challenges, including high leverage and negative cash flows, which are the most impactful factors. The technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. However, the earnings call and corporate events provide positive strategic insights, slightly offsetting the financial concerns.

Positive Factors

Strategic Merger

The merger with Two Harbors is expected to enhance UWM's market position and financial standing, providing significant synergies and expanding its market reach.

AI Integration

Successful AI integration improves operational efficiency and customer service, potentially increasing loan closings and strengthening UWM's competitive advantage.

Record Loan Production

Record loan production indicates strong market demand and UWM's ability to capture market share, supporting long-term revenue growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting UWM's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows highlight liquidity challenges, which may hinder UWM's ability to sustain operations and pursue strategic initiatives.

Declining Profit Margins

Declining profit margins suggest operational inefficiencies, which could affect UWM's long-term profitability and competitive positioning.

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: Negative
• Last Price: 4.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.87 is below the 20-day moving average (MA) of 5.35, below the 50-day MA of 5.34, and below the 200-day MA of 4.90, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 7.72 is Positive, 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
GHLD	70 Outperform	$1.24B	50.97	10.53%	―	23.81%	―
PFSI	69 Neutral	$7.00B	14.50	12.55%	0.89%	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	$53.73B	240.30	-2.15%	―	22.56%	―
UWMC	48 Neutral	$7.86B	-541.11	11.37%	8.31%	-8.66%	―
LDI	47 Neutral	$749.78M	-6.11	-25.72%	―	3.91%	27.78%

UWM Holding Corporate Events

UWM Holding Announces Definitive Merger with Two Harbors

On December 17, 2025, UWM Holdings Corporation entered into a definitive merger agreement under which Two Harbors Investment Corp. will be merged into a wholly owned UWM subsidiary, with the subsidiary surviving as part of UWM’s consolidated group. Under the agreed terms, each share of Two Harbors common stock will be exchanged for 2.3328 shares of newly issued UWM Class A common stock plus cash in lieu of fractional shares, while each series of Two Harbors preferred stock will convert on a one-for-one basis into corresponding series of UWM preferred stock, and outstanding Two Harbors equity awards and restricted stock will be converted into the same merger consideration on specified vesting and performance assumptions. Completion of the transaction is subject to customary conditions, including approval by Two Harbors shareholders, antitrust clearance, effectiveness of a UWM registration statement, NYSE listing of the new UWM shares, tax opinions confirming the deal qualifies as a reorganization and that Two Harbors has maintained REIT status, absence of material adverse effects, and specified termination rights and fees, including a $25.35 million breakup fee payable by Two Harbors in certain circumstances. The boards of both companies unanimously approved the deal and Two Harbors’ board has recommended shareholder approval, and the agreement also provides for post-closing employee protections and the appointment of a Two Harbors designee to an expanded UWM board, underscoring the strategic integration of the acquired business and governance alignment between the companies.

UWM Holding Announces $1.3 Billion All-Stock Merger

On December 17, 2025, UWM Holdings Corporation announced a $1.3 billion all-stock merger agreement to acquire Two Harbors Investment Corp. The transaction involves exchanging Two Harbors’ common and preferred stock with newly issued UWM shares, increasing UWM’s public float by 93% and expanding its board to include a director from Two Harbors. Expected to close in Q2 2026, the merger will position the combined entity as a complete mortgage services leader, with over $400 billion in MSR assets and significant cost and revenue synergies, accelerating UWM’s growth and enhancing broker services. This strategic move strengthens UWM’s financial standing and market presence, consolidating its scale as the nation’s top mortgage lender while driving long-term stockholder value.

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.