Want to see UWMC full AI Analyst Report?
Top Page
UWM Holding
(NYSE:UWMC)
Select Model
Select Model
Rating:46Neutral
Price Target:
$1.00
▼(-33.77% Downside)
Action:Reiterated
Date:10/07/26
The score is held down primarily by elevated balance-sheet risk and unstable, recently negative cash flows, despite strong operating-level profitability. Technicals also remain bearish with the price below all key moving averages and negative MACD. Partially offsetting these negatives, management outlined meaningful post-transaction equity strengthening and steadier EBITDA, but dividend suspension and dilution/financing complexity temper the upside.
Positive Factors
Operating profitability and growth
TTM revenue expansion and a roughly 21% operating margin indicate that the core mortgage platform is generating meaningful operating earnings. If sustained, this combination gives UWMC resources to support broker relationships, technology and fulfillment capacity through the next several quarters.
Negative Factors
High balance-sheet leverage
Despite the recent equity raise, the reported balance sheet remains highly leveraged on a TTM basis and has limited equity protection relative to assets. A thin capital cushion leaves earnings and liquidity more sensitive to mortgage-market, servicing and credit-related swings than better-capitalized peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating profitability and growth
TTM revenue expansion and a roughly 21% operating margin indicate that the core mortgage platform is generating meaningful operating earnings. If sustained, this combination gives UWMC resources to support broker relationships, technology and fulfillment capacity through the next several quarters.
Read all positive factors
UWM Holding (UWMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.74B
Dividend Yield37.04%
Average Volume (3M)11.58M
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth11.65%
EPS Growth-440.08%
CountryUS
Employees9,100
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-0.08
Shares Outstanding345,098,880
10 Day Avg. Volume12,378,889
30 Day Avg. Volume11,580,341
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)4.64
Price to Sales (P/S)0.29
P/FCF Ratio-0.34
Enterprise Value/Market Cap9.80
Enterprise Value/Revenue5.31
Enterprise Value/Gross Profit6.22
Enterprise Value/Ebitda23.00
Forecast
1Y Price Target
$2.41Price Target Upside59.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.21
Revenue Forecast (FY)$2.41B
UWM Holding Business Overview & Revenue Model
Company Description
UWM Holdings Corporation is a U.S.-based enterprise specializing in the provision of residential mortgage financing. The company originates home loans predominantly through a wholesale distribution model, with its offerings primarily consisting of...
How the Company Makes Money
UWMC makes money primarily by originating and funding residential mortgage loans and monetizing those loans through sale, securitization, and ongoing servicing-related economics. Key revenue and earnings drivers typically include: (1) Gain-on-sale...
UWM Holding Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized a strengthened balance sheet, a large strategic capital infusion with Oaktree, and consistent operating profitability (adjusted EBITDA $160M–$200M and ~$40B originations), all framed as positioning UWM for long-term growth. Management acknowledged near-term negatives — a one-time hedge loss, higher servicing costs during the transition, the failed Two Harbors deal and potential warrant dilution — but presented these as transactional or temporary impacts offset by the capital raise, fortified equity (~$3B), and improved debt ratios (nonfunding debt-to-equity down to ~1.2x). Overall, management’s tone was optimistic about long-term prospects and viewed the negatives as manageable or one-time events.Positive Updates
Consistent Adjusted EBITDA and Quarterly Originations
Management reported adjusted EBITDA of roughly $160M–$200M consistently and noted operating income/adjusted EBITDA 'over $180M' in the second quarter. Originations were about $40B in the quarter (down from $45B the prior quarter, ~11% sequential decline), demonstrating a large, functioning origination engine.
Negative Updates
Dividend Suspension
Management announced a pause/suspension of the regular dividend to prioritize retaining equity and bolstering liquidity following the capital transaction. They left open the possibility of special or resumed dividends in the future.
Read all updates
Q2-2026 Updates
Positive
Negative
Consistent Adjusted EBITDA and Quarterly Originations
Management reported adjusted EBITDA of roughly $160M–$200M consistently and noted operating income/adjusted EBITDA 'over $180M' in the second quarter. Originations were about $40B in the quarter (down from $45B the prior quarter, ~11% sequential decline), demonstrating a large, functioning origination engine.
Read all positive updates
Company Guidance
Management guided that following the $2B+ capital raise (Oaktree ~ $1.5B and Mathew Ishbia ~ $500–550M) UWM’s total equity should rise from roughly $1B to over $3B and the non‑funding debt‑to‑equity ratio has fallen from ~5.6x (post hedge loss) to ~1.2x (well below industry norms of ~1.5–2x); they have suspended the regular dividend to retain liquidity and will reevaluate each quarter. They noted interest savings of roughly $100M from paying down MSR lines versus paying about $165M on the new preferred at a ~10% coupon, and emphasized the structure includes 330M warrants (165M exercisable at $2, 165M at $6; average ~$4). Operational guidance reiterated steady adjusted EBITDA of roughly $160–200M per quarter (management cited >$180M operating income and $400–500M annual operating results), originations of ~$40B in Q2 (≈$45B prior quarter) with capacity to handle $250–300B, and servicing exposure of ~2–3% of the servicing market while capturing ~12–13% of refinances; the recent hedge loss was described as a one‑time, transaction‑specific event and hedging policies will be tightened.UWM Holding Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
28
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.21B | 3.16B | 1.91B | 1.11B | 2.15B | 2.83B |
| Gross Profit | 2.73B | 2.71B | 1.37B | 755.02M | 1.81B | 2.48B |
| EBITDA | 739.36M | 837.20M | 384.73M | -26.23M | 984.07M | 1.62B |
| Net Income | -37.14M | 27.38M | 14.40M | -13.23M | 41.72M | 98.44M |
Balance Sheet | ||||||
| Total Assets | 17.94B | 16.93B | 15.67B | 11.87B | 13.60B | 22.53B |
| Cash, Cash Equivalents and Short-Term Investments | 498.41M | 503.36M | 507.34M | 497.47M | 704.90M | 731.09M |
| Total Debt | 14.65B | 14.44B | 12.84B | 8.73B | 9.78B | 18.79B |
| Total Liabilities | 16.96B | 15.34B | 13.62B | 9.40B | 10.43B | 19.36B |
| Stockholders Equity | 133.71M | 199.52M | 161.52M | 112.55M | 143.56M | 142.40M |
Cash Flow | ||||||
| Free Cash Flow | -4.92B | -2.72B | -6.28B | 138.81M | 8.24B | -10.02B |
| Operating Cash Flow | -4.86B | -2.65B | -6.24B | 165.24M | 8.27B | -9.96B |
| Investing Cash Flow | 1.48B | 2.26B | 2.68B | 1.83B | 1.29B | 199.75M |
| Financing Cash Flow | 3.42B | 384.02M | 3.58B | -2.20B | -9.58B | 9.26B |
UWM Holding Technical Analysis
Negative
1.51
Price Trends
1.37
Negative
1.81
Negative
2.90
Negative
Market Momentum
-0.09
Positive
27.85
Positive
2.42
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 1.51 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.37, and below the 200-day MA of 2.90, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 27.85 is Positive, neither overbought nor oversold. The STOCH value of 2.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UWMC.
UWM Holding Risk Analysis
UWM Holding disclosed 52 risk factors in its most recent earnings report. UWM Holding 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
UWM Holding Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $581.56M | 5.30 | 15.83% | ― | 31.59% | 17.94% | |
56 Neutral | $32.51B | 73.40 | 2.40% | 5.58% | 95.19% | ― | |
55 Neutral | $3.11B | 7.92 | 9.14% | 2.00% | 24.08% | 0.60% | |
46 Neutral | $1.74B | -13.48 | -20.07% | 37.04% | 11.65% | -440.08% | |
43 Neutral | $187.45M | -0.89 | -465.27% | ― | 41.17% | 16.62% | |
41 Neutral | $190.31M | -1.86 | -30.86% | 23.07% | 17.11% | 9.17% |
* Financial Sector Average
UWMC
UWM Holding
1.02
-3.81
-78.87%
PFSI
PennyMac Financial
58.84
-56.50
-48.99%
LDI
loanDepot
0.58
-2.35
-80.10%
VEL
Velocity Financial
14.56
-3.57
-19.69%
RKT
Rocket Companies
10.87
-5.59
-33.96%
BETR
Better Home & Finance
9.20
-41.61
-81.89%
UWM Holding Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
UWM Holding Announces $400 Million Rights Offering Plan
Positive
Oct 5, 2026
On October 5, 2026, UWM Holdings Corporation launched a rights offering aimed at raising up to $400 million, granting each holder of Class A common stock as of the October 2, 2026 record date one right per share to buy 0.57 new shares at a subscri...
Private Placements and FinancingRegulatory Filings and Compliance
UWM Holding Registers Resale of Preferred Stock and Warrants
Neutral
Oct 1, 2026
On October 1, 2026, UWM Holdings Corporation registered for resale up to 1,500,000 shares of Series A-1 preferred stock, 165,000,000 Class A warrants, 165,000,000 Class B warrants, and 330,000,000 shares of Class A common stock issuable upon warra...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
UWM Holding Secures Major Preferred Equity Investment
Negative
Aug 6, 2026
On August 5, 2026, UWM Holdings closed a $1.65 billion financing through the issuance of Series A-1 and A-2 preferred stock and long-dated warrants to affiliates of Oaktree Capital Management and Ishbia family entities, as part of a broader $2.05 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.