UWM Holdings Corporation Class A Common Stock (UWMC)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $1.8 billion in annual free cash flow (170.1% yield on market cap)
• Solid return on equity of 13.4% above cost of capital
• Revenue growth of 55.3% demonstrates strong top-line momentum
• Attractive 10.9% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($1) with negative 155% margin of safety—limited downside protection
• High leverage at 9.08x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

UWM Holdings Corporation Class A Common Stock is a micro-cap financial services company valued at $1.1 billion. The business generates $3.5 billion in annual revenue with a 0.6% net margin and $1.8 billion in free cash flow. From a quality standpoint, UWM shows distressed Altman Z-Score of 0.1 warrants caution and adequate 13% ROE. On valuation, the stock is trading at a premium 30.6x earnings, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 55.3% and profit growth of 117.7%. The 10.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

UWM's 55% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $1.8 billion in annual free cash flow (170.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 31x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer