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WALKER & DUNLOP INC (WD) Stock Fundamental Analysis

NYSE:WD - New York Stock Exchange, Inc. - US93148P1021 - Common Stock - Currency: USD

83.15  -2.85 (-3.31%)

After market: 83.15 0 (0%)

Fundamental Rating

3

Taking everything into account, WD scores 3 out of 10 in our fundamental rating. WD was compared to 101 industry peers in the Financial Services industry. While WD seems to be doing ok healthwise, there are quite some concerns on its profitability. WD has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

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.
WD had positive earnings in 4 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.
WD Yearly Net Income VS EBIT VS OCF VS FCFWD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B 1.5B

1.2 Ratios

With a Return On Assets value of 2.28%, WD perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
WD's Return On Equity of 6.10% is in line compared to the rest of the industry. WD outperforms 41.58% of its industry peers.
Industry RankSector Rank
ROA 2.28%
ROE 6.1%
ROIC N/A
ROA(3y)4.22%
ROA(5y)4.81%
ROE(3y)11.64%
ROE(5y)14.22%
ROIC(3y)N/A
ROIC(5y)N/A
WD Yearly ROA, ROE, ROICWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

The Profit Margin of WD (8.06%) is worse than 60.40% of its industry peers.
WD's Profit Margin has declined in the last couple of years.
WD has a Operating Margin of 17.05%. This is comparable to the rest of the industry: WD outperforms 58.42% of its industry peers.
In the last couple of years the Operating Margin of WD has declined.
Industry RankSector Rank
OM 17.05%
PM (TTM) 8.06%
GM N/A
OM growth 3Y-17.43%
OM growth 5Y-8.83%
PM growth 3Y-23.36%
PM growth 5Y-14.3%
GM growth 3YN/A
GM growth 5YN/A
WD Yearly Profit, Operating, Gross MarginsWD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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4

2. Health

2.1 Basic Checks

WD does not have a ROIC to compare to the WACC, probably because it is not profitable.
WD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
WD Yearly Shares OutstandingWD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
WD Yearly Total Debt VS Total AssetsWD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

A Debt/Equity ratio of 1.05 is on the high side and indicates that WD has dependencies on debt financing.
The Debt to Equity ratio of WD (1.05) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.05
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC13.06%
WD Yearly LT Debt VS Equity VS FCFWD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B

2.3 Liquidity

A Current Ratio of 6.43 indicates that WD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.43, WD belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
WD has a Quick Ratio of 6.43. This indicates that WD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of WD (6.43) is better than 94.06% of its industry peers.
Industry RankSector Rank
Current Ratio 6.43
Quick Ratio 6.43
WD Yearly Current Assets VS Current LiabilitesWD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 0.31% 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.
EPS 1Y (TTM)0.31%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%41.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%24.46%

3.2 Future

The Earnings Per Share is expected to grow by 26.17% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.72% on average over the next years.
EPS Next Y44.48%
EPS Next 2Y29.26%
EPS Next 3Y26.17%
EPS Next 5YN/A
Revenue Next Year10.03%
Revenue Next 2Y8.66%
Revenue Next 3Y6.72%
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.
WD Yearly Revenue VS EstimatesWD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
WD Yearly EPS VS EstimatesWD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 26.07, WD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WD is valued a bit more expensive than 60.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. WD is around the same levels.
Based on the Price/Forward Earnings ratio of 18.04, the valuation of WD can be described as rather expensive.
WD's Price/Forward Earnings ratio is in line with the industry average.
WD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 26.07
Fwd PE 18.04
WD Price Earnings VS Forward Price EarningsWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 74.26% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.12
WD Per share dataWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WD's earnings are expected to grow with 26.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y29.26%
EPS Next 3Y26.17%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.19%, WD has a reasonable but not impressive dividend return.
The stock price of WD dropped by -23.36% 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 rather good when compared to the industry average which is at 3.84. WD pays more dividend than 84.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, WD pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

On average, the dividend of WD grows each year by 19.75%, 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)19.75%
Div Incr Years6
Div Non Decr Years6
WD Yearly Dividends per shareWD Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

84.06% 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.
DP84.06%
EPS Next 2Y29.26%
EPS Next 3Y26.17%
WD Yearly Income VS Free CF VS DividendWD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B 1.5B
WD Dividend Payout.WD Dividend Payout, showing the Payout Ratio.WD Dividend Payout.PayoutRetained Earnings

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WALKER & DUNLOP INC

NYSE:WD (2/21/2025, 8:04:00 PM)

After market: 83.15 0 (0%)

83.15

-2.85 (-3.31%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-13 2025-02-13/bmo
Earnings (Next)04-30 2025-04-30/bmo
Inst Owners84.34%
Inst Owner Change1.64%
Ins Owners3.4%
Ins Owner Change-0.21%
Market Cap2.81B
Analysts78.46
Price Target113.9 (36.98%)
Short Float %2.16%
Short Ratio3.78
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend2.6
Dividend Growth(5Y)19.75%
DP84.06%
Div Incr Years6
Div Non Decr Years6
Ex-Date02-28 2025-02-28 (0.67)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.3%
Min EPS beat(2)-18.5%
Max EPS beat(2)-18.1%
EPS beat(4)1
Avg EPS beat(4)-14.39%
Min EPS beat(4)-34.4%
Max EPS beat(4)13.43%
EPS beat(8)1
Avg EPS beat(8)-18.56%
EPS beat(12)3
Avg EPS beat(12)-15.3%
EPS beat(16)5
Avg EPS beat(16)-7.5%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.27%
Max Revenue beat(2)-3.56%
Revenue beat(4)0
Avg Revenue beat(4)-7.1%
Min Revenue beat(4)-16.81%
Max Revenue beat(4)-3.56%
Revenue beat(8)1
Avg Revenue beat(8)-7.42%
Revenue beat(12)3
Avg Revenue beat(12)-5.14%
Revenue beat(16)5
Avg Revenue beat(16)-1.07%
PT rev (1m)-5.41%
PT rev (3m)-3.31%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)3.38%
EPS NY rev (1m)3.07%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 26.07
Fwd PE 18.04
P/S 2.17
P/FCF N/A
P/OCF N/A
P/B 1.64
P/tB N/A
EV/EBITDA 10.12
EPS(TTM)3.19
EY3.84%
EPS(NY)4.61
Fwd EY5.54%
FCF(TTM)-2.4
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS38.3
BVpS50.63
TBVpS-5.91
PEG (NY)0.59
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.28%
ROE 6.1%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 17.05%
PM (TTM) 8.06%
GM N/A
FCFM N/A
ROA(3y)4.22%
ROA(5y)4.81%
ROE(3y)11.64%
ROE(5y)14.22%
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)6.59%
ROCE(5y)7.49%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-17.43%
OM growth 5Y-8.83%
PM growth 3Y-23.36%
PM growth 5Y-14.3%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 1.05
Debt/FCF N/A
Debt/EBITDA 4.01
Cap/Depr 5.02%
Cap/Sales 0.88%
Interest Coverage 2.19
Cash Conversion N/A
Profit Quality N/A
Current Ratio 6.43
Quick Ratio 6.43
Altman-Z N/A
F-Score3
WACC13.06%
ROIC/WACCN/A
Cap/Depr(3y)6.96%
Cap/Depr(5y)5.15%
Cap/Sales(3y)1.34%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.31%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%41.94%
EPS Next Y44.48%
EPS Next 2Y29.26%
EPS Next 3Y26.17%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%24.46%
Revenue Next Year10.03%
Revenue Next 2Y8.66%
Revenue Next 3Y6.72%
Revenue Next 5YN/A
EBIT growth 1Y6.05%
EBIT growth 3Y-18.18%
EBIT growth 5Y-1.74%
EBIT Next Year73.13%
EBIT Next 3Y26.67%
EBIT Next 5Y21.38%
FCF growth 1Y-114%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-111.58%
OCF growth 3YN/A
OCF growth 5YN/A