WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WD - US93148P1021 - Common Stock
60.15 USD
-0.65 (-1.07%)
60.15 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WD. WD was compared to 98 industry peers in the Financial Services industry. WD has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, WD is valued expensive at the moment. Finally WD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WD was profitable.
In the past year WD has reported a negative cash flow from operations.
WD had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: WD reported negative operating cash flow in multiple years.
1.2 Ratios
WD has a Return On Assets of 1.94%. This is comparable to the rest of the industry: WD outperforms 58.16% of its industry peers.
The Return On Equity of WD (6.36%) is worse than 60.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 6.36% | ||
| ROIC | N/A |
ROA(3y)3.38%
ROA(5y)4.04%
ROE(3y)8.14%
ROE(5y)12.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 9.09%, WD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WD has declined.
WD has a Operating Margin of 16.05%. This is comparable to the rest of the industry: WD outperforms 56.12% of its industry peers.
In the last couple of years the Operating Margin of WD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.05% | ||
| PM (TTM) | 9.09% | ||
| GM | N/A |
OM growth 3Y-17.2%
OM growth 5Y-11.53%
PM growth 3Y-22.94%
PM growth 5Y-14.57%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
WD does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, WD has more shares outstanding
Compared to 5 years ago, WD has more shares outstanding
WD has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 1.70 is on the high side and indicates that WD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.70, WD is doing worse than 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.4%
2.3 Liquidity
WD has a Current Ratio of 6.45. This indicates that WD is financially healthy and has no problem in meeting its short term obligations.
WD has a better Current ratio (6.45) than 95.92% of its industry peers.
WD has a Quick Ratio of 6.45. This indicates that WD is financially healthy and has no problem in meeting its short term obligations.
WD has a Quick ratio of 6.45. This is amongst the best in the industry. WD outperforms 95.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.36% over the past year.
The earnings per share for WD have been decreasing by -10.16% on average. This is quite bad
WD shows a decrease in Revenue. In the last year, the revenue decreased by -4.46%.
WD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
EPS 1Y (TTM)20.36%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%15.29%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%15.52%
3.2 Future
WD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.38% yearly.
Based on estimates for the next years, WD will show a quite strong growth in Revenue. The Revenue will grow by 9.75% on average per year.
EPS Next Y6.12%
EPS Next 2Y21.25%
EPS Next 3Y24.38%
EPS Next 5YN/A
Revenue Next Year11.26%
Revenue Next 2Y10.76%
Revenue Next 3Y9.75%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.85, which indicates a rather expensive current valuation of WD.
WD's Price/Earnings ratio is in line with the industry average.
WD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 12.83, WD is valued correctly.
WD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. WD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WD is valued a bit cheaper than 63.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WD does not grow enough to justify the current Price/Earnings ratio.
WD's earnings are expected to grow with 24.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.92
PEG (5Y)N/A
EPS Next 2Y21.25%
EPS Next 3Y24.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.40%, WD is a good candidate for dividend investing.
In the last 3 months the price of WD has falen by -28.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WD's Dividend Yield is rather good when compared to the industry average which is at 2.36. WD pays more dividend than 82.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
On average, the dividend of WD grows each year by 16.43%, which is quite nice.
WD has been paying a dividend for over 5 years, so it has already some track record.
As WD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)16.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
WD pays out 81.20% of its income as dividend. This is not a sustainable payout ratio.
WD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.2%
EPS Next 2Y21.25%
EPS Next 3Y24.38%
60.15
-0.65 (-1.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners86.67%
Inst Owner Change2.39%
Ins Owners3.74%
Ins Owner Change-0.36%
Market Cap2.05B
Revenue(TTM)1.24B
Net Income(TTM)112.29M
Analysts80
Price Target87.21 (44.99%)
Short Float %2.23%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend2.68
Dividend Growth(5Y)16.43%
DP81.2%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.96%
Min EPS beat(2)-18.45%
Max EPS beat(2)34.37%
EPS beat(4)2
Avg EPS beat(4)-17.05%
Min EPS beat(4)-88.79%
Max EPS beat(4)34.37%
EPS beat(8)3
Avg EPS beat(8)-15.72%
EPS beat(12)3
Avg EPS beat(12)-18.06%
EPS beat(16)5
Avg EPS beat(16)-15.74%
Revenue beat(2)2
Avg Revenue beat(2)6.69%
Min Revenue beat(2)1.97%
Max Revenue beat(2)11.41%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-8.18%
Max Revenue beat(4)11.41%
Revenue beat(8)3
Avg Revenue beat(8)-2.1%
Revenue beat(12)4
Avg Revenue beat(12)-3.98%
Revenue beat(16)6
Avg Revenue beat(16)-3.13%
PT rev (1m)-7.4%
PT rev (3m)-7.57%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)-7.62%
EPS NY rev (1m)-8.79%
EPS NY rev (3m)-8.45%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)1.92%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 12.83 | ||
| P/S | 1.66 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.84 |
EPS(TTM)3.37
EY5.6%
EPS(NY)4.69
Fwd EY7.8%
FCF(TTM)-27.87
FCFYN/A
OCF(TTM)-27.51
OCFYN/A
SpS36.28
BVpS51.84
TBVpS-1.61
PEG (NY)2.92
PEG (5Y)N/A
Graham Number62.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 6.36% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 16.05% | ||
| PM (TTM) | 9.09% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.38%
ROA(5y)4.04%
ROE(3y)8.14%
ROE(5y)12.19%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.69%
ROCE(5y)6.46%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-17.2%
OM growth 5Y-11.53%
PM growth 3Y-22.94%
PM growth 5Y-14.57%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.78 | ||
| Cap/Depr | 5.09% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 | ||
| Altman-Z | N/A |
F-Score3
WACC7.4%
ROIC/WACCN/A
Cap/Depr(3y)7.32%
Cap/Depr(5y)5.62%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.36%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%15.29%
EPS Next Y6.12%
EPS Next 2Y21.25%
EPS Next 3Y24.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%15.52%
Revenue Next Year11.26%
Revenue Next 2Y10.76%
Revenue Next 3Y9.75%
Revenue Next 5YN/A
EBIT growth 1Y-10.07%
EBIT growth 3Y-20.07%
EBIT growth 5Y-5.56%
EBIT Next Year301.17%
EBIT Next 3Y77.21%
EBIT Next 5YN/A
FCF growth 1Y-155.82%
FCF growth 3Y-48.68%
FCF growth 5Y-22.74%
OCF growth 1Y-154.56%
OCF growth 3Y-47.03%
OCF growth 5Y-21.27%
WALKER & DUNLOP INC / WD FAQ
What is the fundamental rating for WD stock?
ChartMill assigns a fundamental rating of 4 / 10 to WD.
Can you provide the valuation status for WALKER & DUNLOP INC?
ChartMill assigns a valuation rating of 3 / 10 to WALKER & DUNLOP INC (WD). This can be considered as Overvalued.
How profitable is WALKER & DUNLOP INC (WD) stock?
WALKER & DUNLOP INC (WD) has a profitability rating of 2 / 10.
What is the valuation of WALKER & DUNLOP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WALKER & DUNLOP INC (WD) is 17.85 and the Price/Book (PB) ratio is 1.16.
Can you provide the financial health for WD stock?
The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.