WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WD - US93148P1021 - Common Stock
62.34 USD
-0.57 (-0.91%)
63.58 USD
+1.24 (+1.99%)
Taking everything into account, WD scores 4 out of 10 in our fundamental rating. WD was compared to 97 industry peers in the Financial Services industry. WD may be in some trouble as it scores bad on both profitability and health. 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.
WD had a negative operating cash flow in the past year.
WD had positive earnings in each 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.
1.2 Ratios
The Return On Assets of WD (1.94%) is comparable to the rest of the industry.
With a Return On Equity value of 6.36%, WD is not doing good in the industry: 60.82% of the companies in the same industry are doing better.
| 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
Looking at the Profit Margin, with a value of 9.09%, WD is in line with its industry, outperforming 49.48% of the companies in the same industry.
In the last couple of years the Profit Margin of WD has declined.
WD has a Operating Margin (16.05%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WD has declined.
| 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.
WD has more shares outstanding than it did 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 1.70. This is a high value indicating a heavy dependency on external financing.
WD has a worse Debt to Equity ratio (1.70) than 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.45%
2.3 Liquidity
A Current Ratio of 6.45 indicates that WD has no problem at all paying its short term obligations.
The Current ratio of WD (6.45) is better than 94.85% 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 better Quick ratio (6.45) than 94.85% 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.
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.
WD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
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 27.17% on average per year.
WD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.21% yearly.
EPS Next Y9.46%
EPS Next 2Y23.52%
EPS Next 3Y27.17%
EPS Next 5YN/A
Revenue Next Year9.51%
Revenue Next 2Y9.78%
Revenue Next 3Y10.21%
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.
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
The Price/Earnings ratio is 18.50, which indicates a rather expensive current valuation of WD.
Compared to the rest of the industry, the Price/Earnings ratio of WD is on the same level as its industry peers.
WD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
A Price/Forward Earnings ratio of 12.81 indicates a correct valuation of WD.
The rest of the industry has a similar Price/Forward Earnings ratio as WD.
When comparing the Price/Forward Earnings ratio of WD to the average of the S&P500 Index (23.52), we can say WD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 12.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WD is valued a bit cheaper than the industry average as 63.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WD does not grow enough to justify the current Price/Earnings ratio.
WD's earnings are expected to grow with 27.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)N/A
EPS Next 2Y23.52%
EPS Next 3Y27.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.35%, WD has a reasonable but not impressive dividend return.
The stock price of WD dropped by -27.50% 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.
Compared to an average industry Dividend Yield of 3.96, WD pays a bit more dividend than its industry peers.
WD's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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.
WD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.2%
EPS Next 2Y23.52%
EPS Next 3Y27.17%
62.34
-0.57 (-0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners86.67%
Inst Owner Change2.39%
Ins Owners3.74%
Ins Owner Change-0.36%
Market Cap2.12B
Revenue(TTM)1.24B
Net Income(TTM)112.29M
Analysts80
Price Target94.18 (51.07%)
Short Float %2.22%
Short Ratio3.33
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)-1.77%
PT rev (3m)-0.18%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-5.92%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 12.81 | ||
| P/S | 1.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11 |
EPS(TTM)3.37
EY5.41%
EPS(NY)4.87
Fwd EY7.81%
FCF(TTM)-27.87
FCFYN/A
OCF(TTM)-27.51
OCFYN/A
SpS36.28
BVpS51.84
TBVpS-1.61
PEG (NY)1.96
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
WACC7.45%
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 Y9.46%
EPS Next 2Y23.52%
EPS Next 3Y27.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%15.52%
Revenue Next Year9.51%
Revenue Next 2Y9.78%
Revenue Next 3Y10.21%
Revenue Next 5YN/A
EBIT growth 1Y-10.07%
EBIT growth 3Y-20.07%
EBIT growth 5Y-5.56%
EBIT Next Year341.8%
EBIT Next 3Y76.26%
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 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 18.5 and the Price/Book (PB) ratio is 1.2.
Can you provide the financial health for WD stock?
The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.