WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WD - US93148P1021 - Common Stock
65 USD
+2.64 (+4.23%)
66.08 USD
+1.08 (+1.66%)
WD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
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
With a Return On Assets value of 1.94%, WD perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
WD has a Return On Equity of 6.36%. This is in the lower half of the industry: WD underperforms 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
WD has a Profit Margin (9.09%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of WD has declined.
Looking at the Operating Margin, with a value of 16.05%, WD is in line with its industry, outperforming 56.12% 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.
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
WD has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
WD has a Debt to Equity ratio of 1.70. This is in the lower half of the industry: WD underperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.43%
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.
The Current ratio of WD (6.45) is better than 94.90% of its industry peers.
A Quick Ratio of 6.45 indicates that WD has no problem at all paying its short term obligations.
The Quick ratio of WD (6.45) is better than 94.90% 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.
The Revenue has decreased by -4.46% in the past 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 24.38% on average per year.
WD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.75% yearly.
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 19.29, which indicates a rather expensive current valuation of WD.
The rest of the industry has a similar Price/Earnings ratio as WD.
The average S&P500 Price/Earnings ratio is at 27.19. WD is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.86, which indicates a correct valuation of WD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WD is on the same level as its industry peers.
WD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WD is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as WD's earnings are expected to grow with 24.38% in the coming years.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y21.25%
EPS Next 3Y24.38%
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 4.30%, which is a nice return.
The stock price of WD dropped by -20.27% 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 2.49.
WD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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
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 2Y21.25%
EPS Next 3Y24.38%
65
+2.64 (+4.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners86.67%
Inst Owner Change0.15%
Ins Owners3.74%
Ins Owner Change-0.36%
Market Cap2.21B
Revenue(TTM)1.24B
Net Income(TTM)112.29M
Analysts81.54
Price Target87.21 (34.17%)
Short Float %2.23%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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)-3.05%
EPS NY rev (3m)-8.45%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 13.86 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.16 |
EPS(TTM)3.37
EY5.18%
EPS(NY)4.69
Fwd EY7.22%
FCF(TTM)-27.87
FCFYN/A
OCF(TTM)-27.51
OCFYN/A
SpS36.28
BVpS51.84
TBVpS-1.61
PEG (NY)3.15
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
WACC8.43%
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 19.29 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.