WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
NYSE:WD - New York Stock Exchange, Inc. - US93148P1021 - Common Stock - Currency: USD
Taking everything into account, WD scores 4 out of 10 in our fundamental rating. WD was compared to 100 industry peers in the Financial Services industry. WD has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
WD had a negative operating cash flow in the past year.
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 better Return On Assets (2.40%) than 61.00% of its industry peers.
WD's Return On Equity of 6.26% is in line compared to the rest of the industry. WD outperforms 42.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 6.26% | ||
| 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
The Profit Margin of WD (7.91%) 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 (14.94%) which is in line with its industry peers.
WD's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.94% | ||
| PM (TTM) | 7.91% | ||
| 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
Compared to 1 year ago, WD has a worse debt to assets ratio.
2.2 Solvency
WD has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
WD has a Debt to Equity ratio of 1.01. This is comparable to the rest of the industry: WD outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.42%
2.3 Liquidity
WD has a Current Ratio of 6.45. This indicates that WD is financially healthy and has no problem in meeting its short term obligations.
WD's Current ratio of 6.45 is amongst the best of the industry. WD outperforms 93.00% 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 93.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 |
3. Growth
3.1 Past
WD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.57%.
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 very strong growth in Revenue. The Revenue has grown by 31.25%.
The Revenue has been growing slightly by 6.74% on average over the past years.
EPS 1Y (TTM)6.57%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%-77.14%
Revenue 1Y (TTM)31.25%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%10.01%
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 22.83% on average per year.
Based on estimates for the next years, WD will show a small growth in Revenue. The Revenue will grow by 6.42% on average per year.
EPS Next Y10.3%
EPS Next 2Y19.4%
EPS Next 3Y22.83%
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y5.85%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.14, the valuation of WD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WD indicates a slightly more expensive valuation: WD is more expensive than 68.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. WD is around the same levels.
With a Price/Forward Earnings ratio of 16.14, WD is valued correctly.
60.00% of the companies in the same industry are cheaper than WD, based on the Price/Forward Earnings ratio.
WD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WD is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.39 |
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 22.83% in the coming years.
PEG (NY)2.44
PEG (5Y)N/A
EPS Next 2Y19.4%
EPS Next 3Y22.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.52%, WD has a reasonable but not impressive dividend return.
WD's Dividend Yield is a higher than the industry average which is at 4.86.
WD's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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.
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
82.67% 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.
DP82.67%
EPS Next 2Y19.4%
EPS Next 3Y22.83%
73.4
-2.96 (-3.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners85.33%
Inst Owner Change0%
Ins Owners3.76%
Ins Owner Change10.41%
Market Cap2.49B
Analysts80
Price Target102 (38.96%)
Short Float %2.5%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend2.68
Dividend Growth(5Y)16.43%
DP82.67%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-42.05%
Min EPS beat(2)-88.79%
Max EPS beat(2)4.68%
EPS beat(4)1
Avg EPS beat(4)-30.18%
Min EPS beat(4)-88.79%
Max EPS beat(4)4.68%
EPS beat(8)2
Avg EPS beat(8)-23.58%
EPS beat(12)2
Avg EPS beat(12)-23.43%
EPS beat(16)5
Avg EPS beat(16)-17.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-8.18%
Max Revenue beat(2)6.37%
Revenue beat(4)1
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-8.18%
Max Revenue beat(4)6.37%
Revenue beat(8)2
Avg Revenue beat(8)-4.29%
Revenue beat(12)2
Avg Revenue beat(12)-6.27%
Revenue beat(16)5
Avg Revenue beat(16)-3.5%
PT rev (1m)0%
PT rev (3m)-7.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.52%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-20.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 16.14 | ||
| P/S | 1.82 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.39 |
EPS(TTM)2.92
EY3.98%
EPS(NY)4.55
Fwd EY6.2%
FCF(TTM)-5.99
FCFYN/A
OCF(TTM)-5.6
OCFYN/A
SpS40.31
BVpS50.98
TBVpS-3.4
PEG (NY)2.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 6.26% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.94% | ||
| PM (TTM) | 7.91% | ||
| 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%
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 5.59% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 2 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 | ||
| Altman-Z | N/A |
F-Score4
WACC8.42%
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)6.57%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%-77.14%
EPS Next Y10.3%
EPS Next 2Y19.4%
EPS Next 3Y22.83%
EPS Next 5YN/A
Revenue 1Y (TTM)31.25%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%10.01%
Revenue Next Year5.06%
Revenue Next 2Y5.85%
Revenue Next 3Y6.42%
Revenue Next 5YN/A
EBIT growth 1Y9.07%
EBIT growth 3Y-20.07%
EBIT growth 5Y-5.56%
EBIT Next Year351.58%
EBIT Next 3Y73.6%
EBIT Next 5YN/A
FCF growth 1Y-495.94%
FCF growth 3Y-48.68%
FCF growth 5Y-22.74%
OCF growth 1Y-396.64%
OCF growth 3Y-47.03%
OCF growth 5Y-21.27%