UWM Holdings Corporation
UWM Holdings Corporation Fundamental Analysis
UWM Holdings Corporation (UWMC) shows moderate financial fundamentals with a PE ratio of 36.55, profit margin of 1.16%, and ROE of 15.25%. The company generates $1.4B in annual revenue with strong year-over-year growth of 71.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UWMC's fundamental strength across five key dimensions:
Efficiency Score
WeakUWMC struggles to generate sufficient returns from assets.
Valuation Score
ModerateUWMC shows balanced valuation metrics.
Growth Score
ModerateUWMC shows steady but slowing expansion.
Financial Health Score
WeakUWMC carries high financial risk with limited liquidity.
Profitability Score
WeakUWMC struggles to sustain strong margins.
Key Financial Metrics
Is UWMC Expensive or Cheap?
P/E Ratio
UWMC trades at 36.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, UWMC's PEG of 1.56 indicates fair valuation.
Price to Book
The market values UWM Holdings Corporation at 5.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -17.86 times EBITDA. This is generally considered low.
How Well Does UWMC Make Money?
Net Profit Margin
For every $100 in sales, UWM Holdings Corporation keeps $1.16 as profit after all expenses.
Operating Margin
Core operations generate 27.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.25 in profit for every $100 of shareholder equity.
ROA
UWM Holdings Corporation generates $0.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UWM Holdings Corporation generates limited operating cash flow of $-1.60B, signaling weaker underlying cash strength.
Free Cash Flow
UWM Holdings Corporation generates weak or negative free cash flow of $-1.65B, restricting financial flexibility.
FCF Per Share
Each share generates $-10.59 in free cash annually.
FCF Yield
UWMC converts -46.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
72.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How UWMC Stacks Against Its Sector Peers
| Metric | UWMC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.55 | 18.91 | Worse (Expensive) |
| ROE | 15.25% | 788.00% | Weak |
| Net Margin | 1.16% | 2164.00% | Weak |
| Debt/Equity | 72.37 | 0.82 | Weak (High Leverage) |
| Current Ratio | 0.67 | 616.06 | Weak Liquidity |
| ROA | 0.16% | -23806.00% (disorted) | Weak |
UWMC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UWM Holdings Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.19%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-96.79%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-65.27%
Industry Style: Value, Dividend, Cyclical
Declining