WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WD - US93148P1021 - Common Stock
64.64 USD
-0.46 (-0.71%)
64.64 USD
0 (0%)
Taking everything into account, WD scores 4 out of 10 in our fundamental rating. WD was compared to 98 industry peers in the Financial Services industry. WD may be in some trouble as it scores bad on both profitability and health. WD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WD had positive earnings in the past year.
In the past year WD has reported a negative cash flow from operations.
In the past 5 years WD has always been profitable.
In multiple years WD reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of WD (1.94%) is comparable to the rest of the industry.
WD has a worse Return On Equity (6.36%) than 62.24% 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
The Profit Margin of WD (9.09%) is comparable to the rest of the industry.
WD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.05%, WD is in line with its industry, outperforming 54.08% of the companies in the same industry.
WD's Operating Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for WD has been increased compared to 1 year ago.
WD has more shares outstanding than it did 5 years ago.
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.
WD has a Debt to Equity ratio of 1.70. This is in the lower half of the industry: WD underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.39%
2.3 Liquidity
A Current Ratio of 6.45 indicates that WD has no problem at all paying its short term obligations.
WD has a Current ratio of 6.45. This is amongst the best in the industry. WD outperforms 93.88% 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 93.88% 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.
WD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.16% yearly.
Looking at the last year, WD shows a decrease in Revenue. The Revenue has decreased by -4.46% in the last year.
Measured over the past years, WD shows a small growth in Revenue. The Revenue has been growing by 6.74% on average per year.
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
Based on estimates for the next years, WD will show a very strong growth in Earnings Per Share. The EPS will grow by 28.82% on average per year.
Based on estimates for the next years, WD will show a quite strong growth in Revenue. The Revenue will grow by 10.47% on average per year.
EPS Next Y16.35%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
EPS Next 5YN/A
Revenue Next Year9.16%
Revenue Next 2Y8.74%
Revenue Next 3Y10.47%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.18, WD is valued on the expensive side.
WD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. WD is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.73, the valuation of WD can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as WD.
WD is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WD indicates a somewhat cheap valuation: WD is cheaper than 62.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WD's earnings are expected to grow with 28.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y21.47%
EPS Next 3Y28.82%
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 3.35%.
The stock price of WD dropped by -24.00% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WD's Dividend Yield is a higher than the industry average which is at 5.04.
WD's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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.
WD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
81.20% of the earnings are spent on dividend by WD. This is not a sustainable payout ratio.
The dividend of WD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.2%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
64.64
-0.46 (-0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners84.87%
Inst Owner Change2.38%
Ins Owners3.74%
Ins Owner Change-0.36%
Market Cap2.20B
Revenue(TTM)1.24B
Net Income(TTM)112.29M
Analysts80
Price Target94.18 (45.7%)
Short Float %2.31%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend2.68
Dividend Growth(5Y)16.43%
DP81.2%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)-0.18%
PT rev (3m)-0.18%
EPS NQ rev (1m)-5.38%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)1.78%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 13.73 | ||
| P/S | 1.78 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.13 |
EPS(TTM)3.37
EY5.21%
EPS(NY)4.71
Fwd EY7.28%
FCF(TTM)-27.87
FCFYN/A
OCF(TTM)-27.51
OCFYN/A
SpS36.28
BVpS51.84
TBVpS-1.61
PEG (NY)1.17
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
WACC7.39%
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 Y16.35%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%15.52%
Revenue Next Year9.16%
Revenue Next 2Y8.74%
Revenue Next 3Y10.47%
Revenue Next 5YN/A
EBIT growth 1Y-10.07%
EBIT growth 3Y-20.07%
EBIT growth 5Y-5.56%
EBIT Next Year349.45%
EBIT Next 3Y74.75%
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.
What is the valuation status of WALKER & DUNLOP INC (WD) stock?
ChartMill assigns a valuation rating of 4 / 10 to WALKER & DUNLOP INC (WD). This can be considered as Fairly Valued.
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 19.18 and the Price/Book (PB) ratio is 1.25.
Can you provide the financial health for WD stock?
The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.