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Guild Holdings (GHLD)
NYSE:GHLD
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Guild Holdings
(NYSE:GHLD)
56Neutral
Guild Holdings (GHLD) vs. S&P 500 (SPY)
Market Cap
$768.06M
Dividend Yield4.03%
Average Volume (3M)14.37K
Price to Earnings (P/E)8.2
Beta (1Y)0.20
Revenue Growth47.54%
EPS Growth64.72%
CountryUS
Employees5,270
SectorFinancial
Sector Strength86
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.35
Shares Outstanding21,557,775
10 Day Avg. Volume5,731
30 Day Avg. Volume14,372
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap4.94
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.61
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.63Price Target Upside17.04% Upside
Rating ConsensusHold
Number of Analyst Covering4
Guild Holdings Business Overview & Revenue Model
Company DescriptionGuild Holdings Company, a mortgage company, originates, sells, and services residential mortgage loans in the United States. The company operates approximately 260 branches with licenses in 49 states. It originates residential mortgages through retail and correspondent channels. The company was incorporated in 1960 and is headquartered in San Diego, California.
How the Company Makes MoneyGuild Holdings generates revenue through the origination and sale of residential mortgage loans. The company earns money primarily from the fees and interest associated with originating mortgage loans and from selling these loans to secondary market investors, including government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. Additionally, Guild Holdings generates income from the servicing of mortgage loans, earning fees for managing loan accounts and processing payments over the life of the loan. Significant partnerships with real estate agents, builders, and financial institutions help expand its customer base and drive loan origination volumes, contributing to its overall revenue.
Guild Holdings Financial Statement Overview
Summary
Guild Holdings exhibits revenue growth and some profitability improvements. However, the company faces significant challenges with cash flow and operational stability. Despite a decreased leverage indicated by the balance sheet, liquidity risks remain due to negative free cash flow and operational cash management issues.Income Statement
Guild Holdings shows a mixed performance in its income statement. The company has demonstrated significant revenue growth in the TTM (Trailing-Twelve-Months) with a revenue increase from $663.86M in 2023 to $969.89M. However, profitability remains a concern with a net profit margin of approximately 10.01% in the TTM, improved from a net loss in the previous year. The EBIT and EBITDA margins indicate better operational efficiency, but the prior periods show fluctuating performance, suggesting potential volatility.60
Neutral
Balance Sheet
The balance sheet shows moderate financial health. The debt-to-equity ratio has improved to 0.24 in the TTM, down from previous years, indicating decreased leverage. However, the equity ratio remains relatively stable at around 26.29%, suggesting a balanced capital structure. Return on equity has improved to approximately 7.74% in the TTM, yet the stability of these metrics over time poses questions about sustained performance.50
Neutral
Cash Flow
The cash flow statement reveals challenges, with negative free cash flow in the TTM despite prior positive cash flow years. Free cash flow growth is negative, and the operating cash flow to net income ratio is unfavorable, indicating a need for enhanced cash management. This highlights potential liquidity risks and the need for improved operational cash generation.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.05B | 663.86M | 1.16B | 1.58B | 1.62B | Gross Profit |
| 1.05B | 677.89M | 473.93M | 489.19M | 1.59B | EBIT |
| -219.69M | 59.49M | 487.22M | 386.92M | 494.07M | EBITDA |
| 24.55M | 59.49M | 840.77M | 486.15M | 619.94M | Net Income Common Stockholders |
| 97.13M | -39.01M | 328.60M | 283.77M | 370.58M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 118.20M | 136.82M | 137.89M | 243.11M | 334.62M | Total Assets |
| 4.77B | 3.68B | 3.24B | 4.38B | 4.82B | Total Debt |
| 300.00M | 526.78M | 925.91M | 2.28B | 2.39B | Net Debt |
| 181.80M | 406.52M | 788.02M | 2.04B | 2.05B | Total Liabilities |
| 3.51B | 2.49B | 1.99B | 3.46B | 4.08B | Stockholders Equity |
| 1.25B | 1.18B | 1.25B | 919.98M | 735.99M |
| Cash Flow | Free Cash Flow | |||
| -668.99M | -97.23M | 1.26B | 675.85M | -476.27M | Operating Cash Flow |
| -659.62M | -91.72M | 1.26B | 680.46M | -468.04M | Investing Cash Flow |
| -152.39M | -136.60M | -7.18M | -104.66M | -18.02M | Financing Cash Flow |
| 809.69M | 208.95M | -1.35B | -667.31M | 718.96M |
Guild Holdings Technical Analysis
Negative
12.50
Price Trends
13.20
Negative
12.85
Negative
13.73
Negative
Market Momentum
-0.21
Positive
43.06
Neutral
20.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHLD, the sentiment is Negative. The current price of 12.5 is below the 20-day moving average (MA) of 12.89, below the 50-day MA of 13.20, and below the 200-day MA of 13.73, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 20.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GHLD.
Guild Holdings Risk Analysis
Guild Holdings disclosed 43 risk factors in its most recent earnings report. Guild Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Guild Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $955.38M | 13.20 | 6.01% | 5.09% | 4.33% | -11.14% | |
73 Outperform | $892.50M | 12.82 | 6.21% | 3.07% | 2.27% | -2.41% | |
72 Outperform | $976.17M | 11.10 | 5.51% | 4.71% | 1.38% | -10.46% | |
70 Outperform | $909.68M | 8.25 | 9.24% | 12.08% | 3.82% | -12.74% | |
64 Neutral | $12.54B | 9.83 | 7.92% | 16985.69% | 12.58% | -6.00% | |
56 Neutral | $768.06M | 8.23 | 3.70% | 4.03% | 47.54% | 64.72% | |
55 Neutral | $1.06B | 13.85 | 7.90% | 2.96% | 9.99% | 1.88% |
* Financial Sector Average
Performance Comparison
GHLD
Guild Holdings
13.50
0.10
0.75%
BRKL
Brookline Bancorp
10.76
2.25
26.44%
OCFC
Oceanfirst Financial
16.33
1.35
9.01%
FBMS
The First Bancshares
33.81
8.84
35.40%
BBDC
Barings BDC
8.70
0.03
0.35%
CNOB
ConnectOne Bancorp
24.16
4.76
24.54%
Guild Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with strong growth in originations and improved loan officer productivity as highlights. However, the net loss reported and decline in net revenue and servicing segment performance presented significant challenges. Despite these hurdles, the company showed resilience with strategic investments and a strong servicing portfolio.Q1-2025 Updates
Positive Updates
Significant Growth in Originations
Achieved 35% growth in originations year-over-year to $5.2 billion, showcasing the success of the growth strategy and market share gains.
Positive Adjusted Financial Performance
Delivered positive adjusted EBITDA of $36.4 million and adjusted net income of $21.6 million despite market volatility.
Increase in Loan Officer Headcount
More than doubled loan officer headcount since the end of 2020, contributing to increased productivity and market presence.
Strong Servicing Portfolio
Servicing portfolio expanded to more than $94 billion, providing financial stability and consistent cash flows.
Improved Origination Segment Profitability
Origination segment profitability improved by $21 million compared to the previous year due to acquisitions and organic growth.
High Loan Officer Productivity
Loan officers at Guild experienced 30% more productivity than the industry average, driven by superior technology and sales coaching.
Negative Updates
Net Loss in the First Quarter
Reported a net loss attributable to Guild of $24 million compared to a net income of $28 million in the prior year.
Decline in Net Revenue
Net revenue totaled $198 million, down from $232 million in the prior year and $373 million in the fourth quarter.
Servicing Segment Net Loss
Servicing segment reported a net loss of $5 million compared to a net income of $84 million in the prior year, primarily due to a $70 million downward valuation adjustment of MSRs.
Company Guidance
During the Guild Holdings Company's first quarter 2025 earnings call, the company reported a 35% year-over-year increase in loan originations, reaching $5.2 billion, and achieved a positive adjusted EBITDA of $36.4 million alongside an adjusted net income of $21.6 million. The servicing portfolio expanded to over $94 billion despite market volatility, providing stability and fueling the "customers for life" strategy. The gain on sale margin for the first quarter was 376 basis points, with a pull-through adjusted lock volume of $5.9 billion. The company maintained a strong balance sheet with cash and equivalents of $112 million and a leverage ratio of 1.6x. Guild Holdings repurchased approximately 35,000 shares and paid a special cash dividend of $0.50 per share during the quarter. Looking ahead, the company anticipates continued market volatility but remains confident in its balanced business model and strategic growth initiatives, including organic recruiting and opportunistic acquisitions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.