WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - NYSE:WD - US93148P1021 - Common Stock
79.98 USD
-0.25 (-0.31%)
77 USD
-2.98 (-3.73%)
WD gets a fundamental rating of 3 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. WD is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years WD has been profitable.
In multiple years WD reported negative operating cash flow during the last 5 years.
1.2 Ratios
WD has a Return On Assets of 2.31%. This is in the better half of the industry: WD outperforms 60.20% of its industry peers.
WD has a Return On Equity of 6.16%. This is in the lower half of the industry: WD underperforms 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 6.16% | ||
| 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 of 9.06%. This is comparable to the rest of the industry: WD outperforms 50.00% of its industry peers.
WD's Profit Margin has declined in the last couple of years.
WD's Operating Margin of 15.99% is in line compared to the rest of the industry. WD outperforms 58.16% of its industry peers.
In the last couple of years the Operating Margin of WD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.99% | ||
| PM (TTM) | 9.06% | ||
| 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.
Compared to 5 years ago, WD has more shares outstanding
The debt/assets ratio for WD is higher compared to a year ago.
2.2 Solvency
WD has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.13, WD perfoms like the industry average, outperforming 41.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.6%
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 better Current ratio (6.45) than 93.88% 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 93.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 |
3. Growth
3.1 Past
WD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.10%, which is quite impressive.
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 -6.26% in the past year.
The Revenue has been growing slightly by 6.74% on average over the past years.
EPS 1Y (TTM)25.1%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%47.76%
Revenue 1Y (TTM)-6.26%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%17.94%
3.2 Future
The Earnings Per Share is expected to grow by 28.82% on average over the next years. This is a very strong growth
WD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y16.35%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
EPS Next 5YN/A
Revenue Next Year7.59%
Revenue Next 2Y7.12%
Revenue Next 3Y6.42%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.69, which indicates a rather expensive current valuation of WD.
Compared to the rest of the industry, the Price/Earnings ratio of WD indicates a slightly more expensive valuation: WD is more expensive than 62.24% of the companies listed in the same industry.
WD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.13.
With a Price/Forward Earnings ratio of 16.99, WD is valued correctly.
WD's Price/Forward Earnings ratio is in line with the industry average.
WD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 16.99 |
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 67.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
WD's 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)1.51
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.91, WD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, WD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of WD is nicely growing with an annual growth rate of 16.43%!
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
83.71% of the earnings are spent on dividend by WD. This is not a sustainable payout ratio.
WD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP83.71%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
79.98
-0.25 (-0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners84.87%
Inst Owner Change1.65%
Ins Owners3.74%
Ins Owner Change-0.36%
Market Cap2.72B
Revenue(TTM)1.19B
Net Income(TTM)107.84M
Analysts78.33
Price Target95.88 (19.88%)
Short Float %2.39%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend2.68
Dividend Growth(5Y)16.43%
DP83.71%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-27.21%
Min EPS beat(2)-88.79%
Max EPS beat(2)34.37%
EPS beat(4)2
Avg EPS beat(4)-17.06%
Min EPS beat(4)-88.79%
Max EPS beat(4)34.37%
EPS beat(8)3
Avg EPS beat(8)-18.22%
EPS beat(12)3
Avg EPS beat(12)-19.15%
EPS beat(16)6
Avg EPS beat(16)-14.3%
Revenue beat(2)1
Avg Revenue beat(2)1.62%
Min Revenue beat(2)-8.18%
Max Revenue beat(2)11.41%
Revenue beat(4)2
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-8.18%
Max Revenue beat(4)11.41%
Revenue beat(8)2
Avg Revenue beat(8)-3.33%
Revenue beat(12)3
Avg Revenue beat(12)-5.2%
Revenue beat(16)6
Avg Revenue beat(16)-2.76%
PT rev (1m)1.62%
PT rev (3m)-6%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)16.26%
EPS NY rev (1m)0.37%
EPS NY rev (3m)5.48%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)4.15%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 16.99 | ||
| P/S | 2.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.35 |
EPS(TTM)3.24
EY4.05%
EPS(NY)4.71
Fwd EY5.89%
FCF(TTM)-5.95
FCFYN/A
OCF(TTM)-5.6
OCFYN/A
SpS34.94
BVpS51.37
TBVpS-2.52
PEG (NY)1.51
PEG (5Y)N/A
Graham Number61.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 6.16% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 15.99% | ||
| PM (TTM) | 9.06% | ||
| 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.59 | ||
| Cap/Depr | 5% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 | ||
| Altman-Z | N/A |
F-Score3
WACC7.6%
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)25.1%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%47.76%
EPS Next Y16.35%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.26%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%17.94%
Revenue Next Year7.59%
Revenue Next 2Y7.12%
Revenue Next 3Y6.42%
Revenue Next 5YN/A
EBIT growth 1Y-10.21%
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-18.07%
FCF growth 3Y-48.68%
FCF growth 5Y-22.74%
OCF growth 1Y-25.33%
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 3 / 10 to WD.
What is the valuation status of WALKER & DUNLOP INC (WD) stock?
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 24.69 and the Price/Book (PB) ratio is 1.56.
Can you provide the financial health for WD stock?
The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.