WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
NYSE:WD - New York Stock Exchange, Inc. - US93148P1021 - Common Stock
We assign a fundamental rating of 3 out of 10 to WD. WD was compared to 101 industry peers in the Financial Services industry. WD may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, WD is valued expensive at the moment.
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 each of the past 5 years.
In multiple years WD reported negative operating cash flow during the last 5 years.
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 has a Return On Equity (6.10%) which is in line with its industry peers.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of WD (8.06%) is comparable to the rest of the industry.
WD's Profit Margin has declined in the last couple of years.
WD has a Operating Margin of 17.05%. This is in the better half of the industry: WD outperforms 61.39% of its industry peers.
In the last couple of years the Operating Margin of WD has declined.
| Industry Rank | Sector 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
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.
The number of shares outstanding for WD has been increased compared to 5 years ago.
The debt/assets ratio for WD is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 1.05 is on the high side and indicates that WD has dependencies on debt financing.
WD has a Debt to Equity ratio (1.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.52%
2.3 Liquidity
WD has a Current Ratio of 6.43. This indicates that WD is financially healthy and has no problem in meeting its short term obligations.
WD's Current ratio of 6.43 is amongst the best of the industry. WD outperforms 93.07% of its industry peers.
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.
WD has a Quick ratio of 6.43. This is amongst the best in the industry. WD outperforms 93.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 6.43 |
3. Growth
3.1 Past
WD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.77%.
Measured over the past years, WD shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.84% on average per year.
The Revenue has grown by 21.69% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.77% on average over the past years.
EPS 1Y (TTM)-19.77%
EPS 3Y-25.5%
EPS 5Y-8.84%
EPS Q2Q%32.81%
Revenue 1Y (TTM)21.69%
Revenue growth 3Y-0.91%
Revenue growth 5Y7.77%
Sales Q2Q%8.77%
3.2 Future
The Earnings Per Share is expected to grow by 23.32% 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 7.90% yearly.
EPS Next Y3.9%
EPS Next 2Y28.16%
EPS Next 3Y24.03%
EPS Next 5Y23.32%
Revenue Next Year5.33%
Revenue Next 2Y8.42%
Revenue Next 3Y8.14%
Revenue Next 5Y7.9%
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 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 34.24, which means the current valuation is very expensive for WD.
66.34% of the companies in the same industry are cheaper than WD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, WD is valued a bit more expensive.
WD is valuated rather expensively with a Price/Forward Earnings ratio of 18.36.
WD's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, WD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.24 | ||
| Fwd PE | 18.36 |
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 71.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.93 |
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.
A more expensive valuation may be justified as WD's earnings are expected to grow with 24.03% in the coming years.
PEG (NY)8.78
PEG (5Y)N/A
EPS Next 2Y28.16%
EPS Next 3Y24.03%
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 2.72%.
Compared to an average industry Dividend Yield of 3.66, WD pays a bit more dividend than its industry peers.
WD's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
5.3 Sustainability
84.06% of the earnings are spent on dividend by WD. This is not a sustainable payout ratio.
WD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP84.06%
EPS Next 2Y28.16%
EPS Next 3Y24.03%
WALKER & DUNLOP INC
NYSE:WD (1/22/2025, 9:42:50 AM)
95.87
-0.89 (-0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners84.34%
Inst Owner Change-0.07%
Ins Owners3.4%
Ins Owner Change-1.34%
Market Cap3.24B
Analysts78.46
Price Target125.8 (31.22%)
Short Float %2.78%
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend2.6
Dividend Growth(5Y)19.75%
DP84.06%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)0%
PT rev (3m)8.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.24 | ||
| Fwd PE | 18.36 | ||
| P/S | 2.5 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.93 |
EPS(TTM)2.8
EY2.92%
EPS(NY)5.22
Fwd EY5.45%
FCF(TTM)-2.4
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS38.3
BVpS50.63
TBVpS-5.91
PEG (NY)8.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.52%
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)-19.77%
EPS 3Y-25.5%
EPS 5Y-8.84%
EPS Q2Q%32.81%
EPS Next Y3.9%
EPS Next 2Y28.16%
EPS Next 3Y24.03%
EPS Next 5Y23.32%
Revenue 1Y (TTM)21.69%
Revenue growth 3Y-0.91%
Revenue growth 5Y7.77%
Sales Q2Q%8.77%
Revenue Next Year5.33%
Revenue Next 2Y8.42%
Revenue Next 3Y8.14%
Revenue Next 5Y7.9%
EBIT growth 1Y6.05%
EBIT growth 3Y-18.18%
EBIT growth 5Y-1.74%
EBIT Next Year73.89%
EBIT Next 3Y26.44%
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