NYSE:UWMC

Stock Analysis Report

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Market Cap

US$11.9b

Last Updated

2021/08/05 23:00 UTC

Data Sources

Company Financials +

Executive Summary

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. More Details


Snowflake Analysis

Solid track record, good value and pays a dividend.

Share Price & News

How has UWM Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UWMC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: UWMC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-4.1%

UWMC

-1.2%

US Mortgage

0.02%

US Market


1 Year Return

n/a

UWMC

45.4%

US Mortgage

33.2%

US Market

Return vs Industry: Insufficient data to determine how UWMC performed against the US Mortgage industry.

Return vs Market: Insufficient data to determine how UWMC performed against the US Market.


Shareholder returns

UWMCIndustryMarket
7 Day-4.1%-1.2%0.02%
30 Day-7.6%-3.6%-0.1%
90 Day6.6%-5.9%4.1%
1 Yearn/a49.7%45.4%35.3%33.2%
3 Yearn/a23.9%14.6%61.4%51.3%
5 Yearn/a64.1%40.4%122.2%97.7%

Long-Term Price Volatility Vs. Market

How volatile is UWM Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is UWM Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UWMC ($7.42) is trading below our estimate of fair value ($23.23)

Significantly Below Fair Value: UWMC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UWMC is good value based on its PE Ratio (0.2x) compared to the US Mortgage industry average (11.6x).

PE vs Market: UWMC is good value based on its PE Ratio (0.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: UWMC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: UWMC is overvalued based on its PB Ratio (6.8x) compared to the US Mortgage industry average (1x).


Future Growth

How is UWM Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UWMC's earnings are forecast to decline over the next 3 years (-9.7% per year).

Earnings vs Market: UWMC's earnings are forecast to decline over the next 3 years (-9.7% per year).

High Growth Earnings: UWMC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UWMC's revenue is expected to decline over the next 3 years (-3.1% per year).

High Growth Revenue: UWMC's revenue is forecast to decline over the next 3 years (-3.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UWMC's Return on Equity is forecast to be very high in 3 years time (41.3%).


Past Performance

How has UWM Holdings performed over the past 5 years?

74.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UWMC has high quality earnings.

Growing Profit Margin: UWMC's current net profit margins (59.4%) are higher than last year (25.1%).


Past Earnings Growth Analysis

Earnings Trend: UWMC's earnings have grown significantly by 74.6% per year over the past 5 years.

Accelerating Growth: UWMC's earnings growth over the past year (749.8%) exceeds its 5-year average (74.6% per year).

Earnings vs Industry: UWMC earnings growth over the past year (749.8%) exceeded the Mortgage industry 40.2%.


Return on Equity

High ROE: Whilst UWMC's Return on Equity (151.98%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is UWM Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: UWMC's Assets to Equity ratio (3.7x) is low.

Allowance for Bad Loans: Insufficient data to determine if UWMC has a sufficient allowance for bad loans.

Low Risk Liabilities: UWMC reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if UWMC has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: UWMC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if UWMC has an appropriate level of bad loans.


Dividend

What is UWM Holdings's current dividend yield, its reliability and sustainability?

5.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UWMC's dividend (5.39%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: UWMC's dividend (5.39%) is in the top 25% of dividend payers in the US market (3.57%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether UWMC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if UWMC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (0.3%), UWMC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UWMC's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Mat Ishbia (41 yo)

8.17yrs

Tenure

US$7,242,280

Compensation

Mr. Mathew R. Ishbia, also known as Mat, serves as Chairman at UWM Holdings Corporation since 2021 and also serves as its President and Chief Executive Officer since June 2013. Mr. Ishbia joined UWM in 200...


CEO Compensation Analysis

Compensation vs Market: Mat's total compensation ($USD7.24M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Mat's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: UWMC's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: UWMC's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UWMC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: UWMC only recently listed within the past 12 months.


Top Shareholders

Company Information

UWM Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UWM Holdings Corporation
  • Ticker: UWMC
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: US$11.925b
  • Market Cap: US$765.063m
  • Shares outstanding: 1.61b
  • Website: https://www.uwm.com

Number of Employees


Location

  • UWM Holdings Corporation
  • 585 South Boulevard East
  • Pontiac
  • Michigan
  • 48341
  • United States

Listings


Biography

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 g...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 23:00
End of Day Share Price2021/08/05 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.