| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 82 | — | 17.8x | Top tier | |
Growth | 71 | 26.1% | 7.1% | Top tier | |
Quality | 22 | — | — | Bottom tier | |
Safety | 9 | — | — | Bottom tier | |
Capital Return | 31 | 3.64% | 2.12% | Bottom tier | |
Momentum | 0 | -77.5% | 2.9% | Bottom tier | |
Sentiment | 82 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
UWM Holdings Corporation, through United Wholesale Mortgage, originates mortgage loans through the independent mortgage broker channel, and management describes the company’s platform as technology- and AI-enabled infrastructure that helps brokers grow their businesses. Loan origination remains the core activity; the company executed approximately $40 billion of business in Q2 of fiscal year 2026, while mortgage servicing rights represent a complementary activity that may be retained or sold when management considers the price and strategic return appropriate. The company also transferred loan servicing to its in-house platform, with the aim of improving borrower retention and returning refinancing opportunities to the broker channel.
In Q2 of fiscal year 2026, revenue was $888.0 million and adjusted earnings before interest, taxes, depreciation, and amortization were $185.9 million, but the hedging loss associated with the Two Harbors transaction overshadowed operating performance and resulted in a net loss of $451.9 million and a loss of $0.23 per share, versus expectations for a loss of $0.07. This represents a net loss margin of approximately 50.9% of revenue, compared with net income of $25.3 million on revenue of $901.4 million and earnings per share of $0.09 in Q1 of fiscal year 2026.
The business mix reflects the company’s primary reliance on loan origination, along with a mortgage servicing rights portfolio that ranks among the ten largest portfolios in the United States according to management, although it does not intend to become a servicing-focused company. Management said the origination platform can process between $250 billion and $300 billion of loans, and that it executed $45 billion in the previous quarter followed by approximately $40 billion in Q2 of fiscal year 2026. By contrast, portfolio results are exposed to changes in the value of servicing rights and the costs of bringing servicing in-house, making the distinction between operating strength and balance-sheet volatility a key factor in analyzing UWMC.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $3.83, within an extremely wide range of $2.00 to $8.50, against a neutral consensus; the average is well below the 52-week high of $7.14, while the highest target exceeds that high. No usable price-to-earnings ratio is available, and the negative revaluation reflects the Q2 fiscal year 2026 loss, the suspension of dividends, the potential dilution, and BTIG’s reduction of its target from $4.00 to $2.00, while the positive scenario depends on the successful recapitalization and the continued profitability of the origination platform.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue in Q2 of fiscal year 2026 was approximately $888.0 million, and adjusted earnings before interest, taxes, depreciation, and amortization reached $185.9 million on business volume of approximately $40 billion. However, hedging losses associated with the attempted acquisition of Two Harbors exceeded $603 million, resulting in a net loss of $451.9 million. The loss per share was $0.23, compared with expectations for a loss of $0.07. Management described the hedge as a transaction-related event, but acknowledged that the market move, the cancellation of the transaction, and the decline in equity combined to amplify the loss.
In August 2026, UWM announced a $2.05 billion recapitalization combining an Oaktree contribution with up to $550 million from Mathew Ishbia and his family. Management expects the transaction to increase equity from approximately $1 billion to nearly $3 billion and reduce the ratio of debt unrelated to loan financing from 5.6 times to 1.2 times. In return, the preferred securities carry a 10% yield, and the transaction includes 330 million warrants. Therefore, the transaction strengthens liquidity and the balance sheet, but imposes a cost of capital and the potential dilution of common shareholders’ ownership.
Management said it suspended dividends to retain equity and liquidity following the Q2 fiscal year 2026 losses and the announced recapitalization. It explained that it will review the dividend policy each quarter with the board of directors. Management stated that a return to regular dividends or the payment of special dividends is possible, but it provided no commitment or specific date. Based on the available information, the stated priority remains retaining earnings and building equity.
Management believes that lower rates may reduce the value of the mortgage servicing rights portfolio, but at the same time increase demand for loan origination and refinancing through the broker network. The company executed approximately $40 billion of business in Q2 of fiscal year 2026, after $45 billion in the previous quarter when rates were slightly lower. Management says the origination platform can process between $250 billion and $300 billion of loans, and that the company executes 12% to 13% of market refinancing transactions despite owning only 2% to 3% of servicing rights. This model represents a natural operating hedge, but it does not eliminate volatility in the valuation of servicing rights.
Management confirmed during the Q2 fiscal year 2026 call that UWM remains a loan origination company and technology infrastructure provider for the mortgage broker channel, rather than a servicing-focused company. The company brought loan servicing in-house and, according to management, owns a portfolio that ranks among the ten largest servicing portfolios in the United States. Costs are rising during fiscal year 2026 because the company is simultaneously bearing expenses for the in-house platform, Cenlar fees, and the costs of terminating external servicing. UWM intends to retain servicing rights or sell them opportunistically based on pricing and liquidity, while using in-house servicing to support customer retention and return refinancing opportunities to brokers.
The average analyst price target is $3.83, with the highest target at $8.50, the lowest target at $2.00, and a neutral consensus. The 52-week range extends from $0.93 to $7.14, illustrating the severity of the stock’s valuation volatility. In August 2026, BTIG lowered its target from $4.00 to $2.00 following the hedging loss and the suspension of dividends. No meaningful price-to-earnings ratio is available, so the valuation depends more heavily on the recovery of net income, completion of the recapitalization, the cost of the preferred securities, and the amount of dilution resulting from 330 million warrants.
