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1. Company Snapshot

1.a. Company Description

UWM Holdings Corporation engages in the residential mortgage lending business in the United States.The company originates mortgage loans through wholesale channel.It originates primarily conforming and government loans.


UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.

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1.b. Last Insights on UWMC

UWM Holdings Corporation's recent performance has been positively driven by several factors. The company reported its Q3 2025 earnings, although it lagged estimates, it showcased a strong quarter with significant growth. Notably, KLP Kapitalforvaltning AS increased its stake in the company by 63.5% during Q2. Additionally, the company successfully priced an upsized offering of $1.0 billion of 6.250% senior notes due 2031, demonstrating access to capital markets. Furthermore, CEO Mat Ishbia's sale of 1.2 million shares represents a strategic move, potentially indicating confidence in the company's future prospects.

1.c. Company Highlights

2. UWM Holdings: Strong Q3 Performance Driven by AI-Powered Growth

UWM Holdings reported a robust third quarter, with $41.7 billion in production, beating guidance, and a gain margin of 130 basis points. The company's income was $12.1 million, and adjusted EBITDA was $211.1 million. Earnings per share (EPS) came in at $0.01, below estimates of $0.07. The company's financial performance was driven by its focus on leveraging technology, including its generative AI loan officer assistant, Mia, which has made over 400,000 calls on behalf of mortgage brokers.

Publication Date: Nov -10

📋 Highlights
  • Record Production Volume:: UWM achieved $41.7 billion in production, surpassing guidance, with a gain margin of 130 basis points.
  • AI-Driven Efficiency:: Mia, the AI assistant, made 400,000 calls, contributing to 14,000 closings, exceeding a 10-15% answer rate forecast.
  • Strong Financial Performance:: Adjusted EBITDA reached $211.1 million, with a net servicing income of $135.1 million for the quarter.
  • Future Servicing Transition:: Plans to bring $100 billion+ servicing in-house by Q1 2026, with $40-100 million in transition costs already accounted for.

Operational Highlights

UWM's operational performance was marked by an all-time record lock day of $4.8 billion in one day, while maintaining turn times, SLAs, and Net Promoter Scores. The company's business is increasingly tied to AI, enhancing knowledge, creating efficiency, and driving growth. Mat Ishbia, Chairman, President, and CEO, stated that the company's work to bring servicing in-house is on track for the first quarter of 2026, which will have a positive financial impact on the business.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 33.1%. The current valuation metrics indicate a Price-to-Sales Ratio of 41.16 and an EV/EBITDA ratio of 454.79, suggesting that the market has high expectations for the company's future growth. The company's focus on leveraging technology and reducing friction in the mortgage process is expected to drive its dominance in the market.

Outlook and Guidance

UWM guided for $43 billion to $50 billion in production for the fourth quarter, with a gain margin of 105% to 130%. The company's strong performance and guidance suggest that it is well-positioned to capitalize on the opportunities in the mortgage market. As Mat Ishbia stated, "We're no longer solely focused on owning a significant portion of the servicing book... Instead, the focus is on reducing friction and leveraging technology to dominate the market."

3. NewsRoom

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Capital Fund Management S.A. Purchases 414,667 Shares of UWM Holdings Corporation $UWMC

Dec -04

Source: defenseworld.net

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First Look: Airbus drops, Crypto slides, Cyber Monday

Dec -01

Source: gurufocus.com

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Inside Billionaire Mat Ishbia's Latest $9 Million UWM Stock Sale

Nov -29

Source: fool.com

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Is UWMC Stock a Buy After Integrated Investment Consultants Scoops Up Over 5 Million Shares?

Nov -28

Source: fool.com

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Brandes Investment Partners, LP Significantly Reduces Vanguard Value ETF by 99.61%

Nov -14

Source: gurufocus.com

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UWM Holdings Corporation (UWMC) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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UWM Holdings Corporation (UWMC) Q3 Earnings Lag Estimates

Nov -06

Source: zacks.com

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Is UWM Stock a Buy, Sell, or Hold After the Company's CEO Sold 1.2M Shares?

Nov -03

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Residential Mortgage Loans

Expected Growth: 8%

UWM Holdings Corporation's 8% growth in Residential Mortgage Loans is driven by increasing demand for housing, low interest rates, and government-backed loan programs. Additionally, the company's strong brand reputation, expanded distribution channels, and efficient operations contribute to its market share gain. Furthermore, the rise of non-QM loans and growing refinance activity also support the growth momentum.

7. Detailed Products

Mortgage Loans

UWM offers a wide range of mortgage loan products, including conventional, FHA, VA, and USDA loans, to help borrowers purchase or refinance their homes.

Jumbo Loans

UWM's jumbo loan products offer higher loan amounts for borrowers who need to finance more expensive homes or investment properties.

Government Loans

UWM offers government-backed loans, including FHA, VA, and USDA loans, with more lenient credit score requirements and lower down payments.

Conventional Loans

UWM's conventional loan products offer competitive interest rates and flexible terms for borrowers with good credit.

Non-QM Loans

UWM's non-QM loan products offer alternative income verification and credit scoring models for borrowers who don't fit traditional lending criteria.

Broker Services

UWM provides broker services, including training, marketing, and technology support, to help mortgage brokers grow their business.

8. UWM Holdings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for UWM Holdings Corporation is moderate due to the presence of alternative financial institutions and fintech companies that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers in the mortgage industry, giving UWM Holdings Corporation an upper hand in negotiations.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of mortgage-related services, but UWM Holdings Corporation's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the mortgage industry, including regulatory hurdles and the need for significant capital investments.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large players in the mortgage industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 98.71%
Debt Cost 4.01%
Equity Weight 1.29%
Equity Cost 12.23%
WACC 4.12%
Leverage 7638.79%

11. Quality Control: UWM Holdings Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Greystone Housing Impact Investors

A-Score: 6.3/10

Value: 7.0

Growth: 4.2

Quality: 6.4

Yield: 10.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Guild

A-Score: 5.5/10

Value: 5.1

Growth: 3.8

Quality: 4.2

Yield: 8.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

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Security National Financial

A-Score: 4.9/10

Value: 8.6

Growth: 5.0

Quality: 6.5

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Velocity Financial

A-Score: 4.9/10

Value: 5.2

Growth: 7.1

Quality: 5.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
UWM Holdings

A-Score: 4.5/10

Value: 2.2

Growth: 3.0

Quality: 4.2

Yield: 10.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
loanDepot

A-Score: 3.9/10

Value: 6.4

Growth: 2.3

Quality: 3.9

Yield: 2.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.86$

Current Price

5.87$

Potential

-0.00%

Expected Cash-Flows