Guild Holdings: A Compounder In The Making, Below Book Value At Present

Ryan Bowen
1.25K Followers

Summary

  • Guild Mortgages was founded in 1960 and has operated as a mortgage originator and servicer through many cycles.
  • The company is run by CEO Mary Ann McGarry, only their second CEO, since 2007 where she has overseen massive growth and an annual average ROE of 35.7%.
  • Shares IPO'd in October 2020 and trade currently at $10.84 with a P/B of 0.53x. Earnings per share were $5.35 and $4.67 in 2022 and 2021, respectively.
  • Since December 2022, Guild has purchased three mortgage companies as part of their roll-up strategy.
  • We'll take a look at all of these things and try to contextualize Guild's history with some current valuations.
Rising prices for real estate

Steady organic growth and strategic acquisitions set this company up for continued growth.

gopixa

This article was originally published exclusively for the Microcap Review on March 20th, 2023.

Guild Mortgage Overview

Guild Holdings (NYSE:GHLD) is a top-30 residential mortgage originator and servicer that IPO’d in October 2020. The company has a history dating back

This article was written by

1.25K Followers
Joined the Seeking Alpha team as a Senior Editor in 2023. As part of being an Editor I no longer can write for the site but instead focus on ensuring we curate quality content.I am a self-taught value investor along the Graham and Dodd line. My first objective is to not lose money. I seek to do this by ensuring any position I enter has a discernible margin of safety. The second thing I aim for is above-average returns.Always open to questions and dialogue as I believe it only serves to improve us all.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GHLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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