UWM Holdings Corporation (UWMC)
Valuation Overview•Is UWM Holdings Corporation Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 38/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
UWMC demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 27.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $945.2M | +65.8% | — | — | — | |
| EBITDA | $573.3M | — | +24.1% | — | — | |
| Net Income | $19.4M | +90.1% | -13.1% | — | — | |
| EPS (Diluted) | $0.08 | -7.7% | -35.6% | -67.4% | — | |
| Free Cash Flow | $82.0M | +56.7% | — | -399.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 77.1% | 75.1% | 79.5% | 86.5% |
| Operating Margin | 27.1% | 22.9% | 33.6% | 35.2% |
| Net Margin | 1.2% | 0.1% | 1.2% | 17.0% |
| FCF Margin | -115.2% | -134.4% | -74.6% | -113.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.06 | $0.09 | +50.0% | ||
| Q1'26 | $0.09 | $0.08 | -11.1% | ||
| Q4'25 | $0.08 | $0.01 | -86.9% | ||
| Q3'25 | $0.06 | $0.16 | +166.7% | ||
| Q2'25 | $0.06 | $-0.23 | -483.3% | ||
| Q1'25 | $0.07 | $0.08 | +20.7% | ||
| Q4'24 | $0.08 | $0.01 | -87.4% | ||
| Q3'24 | $0.07 | $0.04 | -40.0% |
Total return is -31.5% (1Y), lagging the benchmark by -56.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -45.1% | -54.4% | — |
| 1Y | -31.5% | -56.5% | +12.6% |
| 3YCAGR | -14.6% | -34.5% | +23.0% |
| 5YCAGR | -15.0% | -28.3% | +21.0% |
| 10YCAGR | -7.2% | -20.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about UWM Holdings Corporation (UWMC) valuation, health, and returns.
Based on peer relative multiples, UWM Holdings Corporation appears Cheap versus peers compared to industry peers.
UWM Holdings Corporation has multiple valuation anchors: Peer Relative Fair Value: $3.72 | Wall Street Analyst Target: $5.40 (implying +143.2% upside). A convergence of these signals offers higher conviction.
UWM Holdings Corporation displays weak financial health with a composite quality score of 38/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.9%.
UWM Holdings Corporation pays a 100.0% dividend yield, covered by a 2617% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
UWM Holdings Corporation's current growth trajectory is Accelerating. The company achieved +65.8% 1Y revenue growth and -7.7% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 13 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a +143.2% change from current levels.
Investment risks for UWM Holdings Corporation include: -67.9% 1-year max drawdown, high beta (1.34x market volatility), stretched payout ratio. Volatility risk is characterized by a beta of 1.34x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.