WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WD - US93148P1021 - Common Stock
64.08 USD
-0.92 (-1.42%)
64.08 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 is quite expensive at the moment. It does show a decent growth rate. 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.
Each year in the past 5 years WD has been profitable.
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 (1.94%) which is comparable to the rest of the industry.
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
WD has a Profit Margin (9.09%) which is in line with its industry peers.
WD's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 16.05%, WD perfoms like the industry average, 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
WD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WD is higher compared to a year ago.
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
A Current Ratio of 6.45 indicates that WD has no problem at all paying its short term obligations.
WD's Current ratio of 6.45 is amongst the best of the industry. WD outperforms 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.
WD has a Quick ratio of 6.45. This is amongst the best in the industry. WD outperforms 94.90% 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 20.36%, which is quite impressive.
Measured over the past years, WD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.16% on average per year.
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
WD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.38% yearly.
The Revenue is expected to grow by 9.75% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 19.01, which indicates a rather expensive current valuation of WD.
WD's Price/Earnings is on the same level as the industry average.
WD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
The Price/Forward Earnings ratio is 13.66, which indicates a correct valuation of WD.
WD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WD to the average of the S&P500 Index (23.98), we can say WD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 13.66 |
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 63.27% of the companies listed in the same industry.
| 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)3.11
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 -21.14% 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%
64.08
-0.92 (-1.42%)
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 Cap2.18B
Revenue(TTM)1.24B
Net Income(TTM)112.29M
Analysts81.54
Price Target87.21 (36.1%)
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 | 19.01 | ||
| Fwd PE | 13.66 | ||
| P/S | 1.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.16 |
EPS(TTM)3.37
EY5.26%
EPS(NY)4.69
Fwd EY7.32%
FCF(TTM)-27.87
FCFYN/A
OCF(TTM)-27.51
OCFYN/A
SpS36.28
BVpS51.84
TBVpS-1.61
PEG (NY)3.11
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 19.01 and the Price/Book (PB) ratio is 1.24.
Can you provide the financial health for WD stock?
The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.