WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - NYSE:WD - US93148P1021 - Common Stock
87.54 USD
+2.24 (+2.63%)
87.54 USD
0 (0%)
Taking everything into account, WD scores 3 out of 10 in our fundamental rating. WD was compared to 101 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.
1. Profitability
1.1 Basic Checks
In the past year WD was profitable.
WD had a negative operating cash flow in the past year.
Each year in the past 5 years WD has been profitable.
In multiple years WD reported negative operating cash flow during the last 5 years.
1.2 Ratios
WD has a Return On Assets (2.31%) which is comparable to the rest of the industry.
WD has a Return On Equity of 6.16%. This is in the lower half of the industry: WD underperforms 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 6.16% | ||
| 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 9.06%, WD is in line with its industry, outperforming 49.51% of the companies in the same industry.
WD's Profit Margin has declined in the last couple of years.
WD has a Operating Margin (15.99%) 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 | 15.99% | ||
| PM (TTM) | 9.06% | ||
| 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
Compared to 1 year ago, WD has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 1.13 is on the high side and indicates that WD has dependencies on debt financing.
WD's Debt to Equity ratio of 1.13 is in line compared to the rest of the industry. WD outperforms 41.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.14%
2.3 Liquidity
A Current Ratio of 6.45 indicates that WD has no problem at all paying its short term obligations.
WD has a better Current ratio (6.45) than 94.06% 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.
Looking at the Quick ratio, with a value of 6.45, WD belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
| 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 25.10%, which is quite impressive.
The earnings per share for WD have been decreasing by -10.16% on average. This is quite bad
WD shows a decrease in Revenue. In the last year, the revenue decreased by -6.26%.
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)25.1%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%47.76%
Revenue 1Y (TTM)-6.26%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%17.94%
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 26.64% on average per year.
WD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y15.92%
EPS Next 2Y21.94%
EPS Next 3Y26.64%
EPS Next 5YN/A
Revenue Next Year8.46%
Revenue Next 2Y7.04%
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
WD is valuated quite expensively with a Price/Earnings ratio of 27.02.
63.37% of the companies in the same industry are cheaper than WD, based on the Price/Earnings ratio.
WD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.46, the valuation of WD can be described as rather expensive.
WD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.88. WD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WD is valued a bit cheaper than 69.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
WD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WD's earnings are expected to grow with 26.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y21.94%
EPS Next 3Y26.64%
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 3.21%.
Compared to an average industry Dividend Yield of 4.86, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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
83.71% 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.
DP83.71%
EPS Next 2Y21.94%
EPS Next 3Y26.64%
87.54
+2.24 (+2.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners85.76%
Inst Owner Change-0.71%
Ins Owners3.76%
Ins Owner Change3.05%
Market Cap2.98B
Analysts78.33
Price Target94.35 (7.78%)
Short Float %2.52%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend2.68
Dividend Growth(5Y)16.43%
DP83.71%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-27.21%
Min EPS beat(2)-88.79%
Max EPS beat(2)34.37%
EPS beat(4)2
Avg EPS beat(4)-17.06%
Min EPS beat(4)-88.79%
Max EPS beat(4)34.37%
EPS beat(8)3
Avg EPS beat(8)-18.22%
EPS beat(12)3
Avg EPS beat(12)-19.15%
EPS beat(16)6
Avg EPS beat(16)-14.3%
Revenue beat(2)1
Avg Revenue beat(2)1.62%
Min Revenue beat(2)-8.18%
Max Revenue beat(2)11.41%
Revenue beat(4)2
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-8.18%
Max Revenue beat(4)11.41%
Revenue beat(8)2
Avg Revenue beat(8)-3.33%
Revenue beat(12)3
Avg Revenue beat(12)-5.2%
Revenue beat(16)6
Avg Revenue beat(16)-2.76%
PT rev (1m)0%
PT rev (3m)-7.5%
EPS NQ rev (1m)5.23%
EPS NQ rev (3m)1.46%
EPS NY rev (1m)5.09%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)4.33%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)3.24%
Revenue NY rev (3m)3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 18.46 | ||
| P/S | 2.51 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.95 |
EPS(TTM)3.24
EY3.7%
EPS(NY)4.74
Fwd EY5.42%
FCF(TTM)-5.95
FCFYN/A
OCF(TTM)-5.6
OCFYN/A
SpS34.94
BVpS51.37
TBVpS-2.52
PEG (NY)1.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 6.16% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 15.99% | ||
| PM (TTM) | 9.06% | ||
| 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-Score3
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.59 | ||
| Cap/Depr | 5% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 | ||
| Altman-Z | N/A |
F-Score3
WACC8.14%
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)25.1%
EPS 3Y-26.85%
EPS 5Y-10.16%
EPS Q2Q%47.76%
EPS Next Y15.92%
EPS Next 2Y21.94%
EPS Next 3Y26.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.26%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%17.94%
Revenue Next Year8.46%
Revenue Next 2Y7.04%
Revenue Next 3Y6.42%
Revenue Next 5YN/A
EBIT growth 1Y-10.21%
EBIT growth 3Y-20.07%
EBIT growth 5Y-5.56%
EBIT Next Year351.32%
EBIT Next 3Y73.96%
EBIT Next 5YN/A
FCF growth 1Y-18.07%
FCF growth 3Y-48.68%
FCF growth 5Y-22.74%
OCF growth 1Y-25.33%
OCF growth 3Y-47.03%
OCF growth 5Y-21.27%