WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WD - US93148P1021 - Common Stock
60.69 USD
+0.96 (+1.61%)
61.52 USD
+0.83 (+1.37%)
We assign a fundamental rating of 4 out of 10 to WD. WD was compared to 98 industry peers in the Financial Services industry. Both the profitability and financial health of WD have multiple concerns. 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
WD had positive earnings in the past year.
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
WD has a Return On Assets of 1.94%. This is comparable to the rest of the industry: WD outperforms 58.16% of its industry peers.
Looking at the Return On Equity, with a value of 6.36%, WD is doing worse than 60.20% of the companies in the same industry.
| 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's Profit Margin of 9.09% is in line compared 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.
With a Operating Margin value of 16.05%, WD perfoms like the industry average, outperforming 56.12% of the companies in the same 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.
Compared to 1 year ago, WD has more shares outstanding
WD has more shares outstanding than it did 5 years ago.
WD has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 1.70 is on the high side and indicates that WD has dependencies on debt financing.
WD has a Debt to Equity ratio of 1.70. This is in the lower half of the industry: WD underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.48%
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.
With an excellent Current ratio value of 6.45, WD belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
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 95.92% 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.
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
The Earnings Per Share is expected to grow by 24.38% on average over the next years. This is a very strong growth
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
Based on the Price/Earnings ratio of 18.01, the valuation of WD can be described as rather expensive.
WD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WD to the average of the S&P500 Index (27.17), we can say WD is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.94, the valuation of WD can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as WD.
The average S&P500 Price/Forward Earnings ratio is at 23.79. WD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 12.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WD is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.83 |
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)2.94
PEG (5Y)N/A
EPS Next 2Y21.25%
EPS Next 3Y24.38%
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 4.46%, which is a nice return.
In the last 3 months the price of WD has falen by -25.56%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WD's Dividend Yield is rather good when compared to the industry average which is at 2.35. WD pays more dividend than 83.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, WD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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
WD pays out 81.20% of its income as dividend. 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 2Y21.25%
EPS Next 3Y24.38%
60.69
+0.96 (+1.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners86.67%
Inst Owner Change0%
Ins Owners3.74%
Ins Owner Change-0.36%
Market Cap2.07B
Revenue(TTM)1.24B
Net Income(TTM)112.29M
Analysts80
Price Target87.21 (43.7%)
Short Float %2.23%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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 | 18.01 | ||
| Fwd PE | 12.94 | ||
| P/S | 1.67 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.83 |
EPS(TTM)3.37
EY5.55%
EPS(NY)4.69
Fwd EY7.73%
FCF(TTM)-27.87
FCFYN/A
OCF(TTM)-27.51
OCFYN/A
SpS36.28
BVpS51.84
TBVpS-1.61
PEG (NY)2.94
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
WACC8.48%
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 18.01 and the Price/Book (PB) ratio is 1.17.
Can you provide the financial health for WD stock?
The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.