UWM Holdings Corporation (UWMC): fair value, margin of safety and Wheel Score

Is UWMC undervalued?

UWM Holdings Corporation (UWMC) closed at 1.69 on 5 Nov 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 2.32, so the price sits 27% below it. 3 of the 6 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.

The 6 models disagree widely: GLS Growth gives 0.1675 while DDM gives 5.89. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

Ranked against every other company we cover, neither cheapness nor growth clearly wins for UWMC, so the nightly engine files it under Blend (value score 56, growth score 56, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for UWMC

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is average - UWMC passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.8 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.

Returns on capital are thin or negative - ROIC 0.2%, ROE 13.7%, ROA 0.2% - with debt at 72.37 times equity and negative free cash flow. Debt of 72.37 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is high at 23.67% (payout ratio 1102%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 32: Weak

UWMC scores 32 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 6, no serious red flags - Red Flags score 37 (under 60); and filter 7, a premium worth selling - implied volatility 226% (over 80%); and filter 9, not a penny stock - price 1.69 (under $5), and the parts are thin too - value strong, premium weak, moat fair, health good, red flags weak, option trading good, stability weak. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.

Implied volatility is 226%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 46,987 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 20.5M shares a day on a market cap of $2.6B, with a beta of 1.87 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for UWMC in the nightly calendar.

Analysts downgraded UWMC 2 times in the last 30 days with no upgrades; the latest action was a reiterated rating by Goldman Sachs on 4 Nov 2026.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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