Don't Buy UWM Before Checking Its Fundamentals!

By Naomi Wentworth • Wednesday, December 13 15:36 • Permanent Link

With gains of 7.0%, UWM was one of the winners on Wall Street today. Its shares are now trading at $6.34 and have logged a 1.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

UWM has moved 31.8% over the last year, and the S&P 500 logged a change of 16.2%
UWMC has an average analyst rating of hold and is 13.3% away from its mean target price of $5.6 per share
Its trailing earnings per share (EPS) is $0.15
UWM has a trailing 12 month Price to Earnings (P/E) ratio of 42.3 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $0.32 and its forward P/E ratio is 19.8
The company has a Price to Book (P/B) ratio of 4.51 in contrast to the S&P 500's average ratio of 2.95
UWM is part of the Finance sector, which has an average P/E ratio of 12.38 and an average P/B of 1.58
UWMC has reported YOY quarterly earnings growth of 16.4% and gross profit margins of 1.0%
The company has a free cash flow of $1.02 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.