Overall Score

Growth Durability

UWMC continues to show a large mortgage origination platform with revenue per share of 9.50 and gross margin of 85.3%.

However, profitability remains inconsistent with net margin at -1.2% and pretax margin at -3.5%, limiting confidence in durable long-term growth.

Balance Sheet Strength

Leverage remains very high with debt-to-equity at 109.5 and net debt to EBITDA at 19.2.

Liquidity is tight with a current ratio of 1.00 and negative working capital of -14.0M, leaving little cushion for a cyclical downturn.

Cash Flow Quality

Cash generation remains weak with operating cash flow per share at -15.42 and free cash flow per share at -15.57.

Income quality is only 49.6%, suggesting earnings are not translating cleanly into cash flow.

Profitability Capital Efficiency

Operating profitability is still respectable with EBIT margin at 21.2% and operating margin at 29.7%.

Return on invested capital is 4.9%, but negative ROE of -20.1% and negative ROA indicate weak bottom-line efficiency.

Valuation

The stock screens as inexpensive on sales at 0.57x and EV/sales at 4.98x relative to its asset-light revenue base.

But the valuation is offset by weak cash flow metrics and elevated leverage, which keep the multiple from looking compelling on a risk-adjusted basis.