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 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. WD also has an excellent dividend rating.
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
WD has a Return On Assets of 2.40%. This is in the better half of the industry: WD outperforms 63.00% of its industry peers.
WD has a Return On Equity (6.26%) which is in line with 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
WD's Profit Margin of 7.91% is in line compared to the rest of the industry. WD outperforms 47.00% of its industry peers.
WD's Profit Margin has declined in the last couple of years.
The Operating Margin of WD (14.94%) is comparable to the rest of the industry.
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.
WD has more shares outstanding than it did 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
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 47.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.34%
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 92.00% of its industry peers.
A Quick Ratio of 6.45 indicates that WD has no problem at all paying its short term obligations.
WD's Quick ratio of 6.45 is amongst the best of the industry. WD outperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.57% over the past year.
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%.
WD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
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.
WD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y11.14%
EPS Next 2Y19.7%
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.28 indicates a rather expensive valuation of WD.
Based on the Price/Earnings ratio, WD is valued a bit more expensive than 64.00% of the companies in the same industry.
WD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.17.
Based on the Price/Forward Earnings ratio of 14.88, the valuation of WD can be described as correct.
Based on the Price/Forward Earnings ratio, WD is valued a bit more expensive than 61.00% of the companies in the same industry.
WD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WD is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.75 |
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)2.09
PEG (5Y)N/A
EPS Next 2Y19.7%
EPS Next 3Y22.83%
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 4.01%, which is a nice return.
The stock price of WD dropped by -20.64% 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.
WD's Dividend Yield is rather good when compared to the industry average which is at 4.90. WD pays more dividend than 82.00% of the companies in the same industry.
WD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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
82.67% 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.
DP82.67%
EPS Next 2Y19.7%
EPS Next 3Y22.83%
67.99
-0.9 (-1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners84.94%
Inst Owner Change1.34%
Ins Owners3.46%
Ins Owner Change9.2%
Market Cap2.31B
Analysts80
Price Target107.1 (57.52%)
Short Float %2.6%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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)-3.08%
PT rev (3m)-5.97%
EPS NQ rev (1m)-22.52%
EPS NQ rev (3m)-35.44%
EPS NY rev (1m)-17.54%
EPS NY rev (3m)-23.07%
Revenue NQ rev (1m)-2.76%
Revenue NQ rev (3m)-6.42%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-4.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 14.88 | ||
| P/S | 1.69 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.75 |
EPS(TTM)2.92
EY4.29%
EPS(NY)4.57
Fwd EY6.72%
FCF(TTM)-5.99
FCFYN/A
OCF(TTM)-5.6
OCFYN/A
SpS40.31
BVpS50.98
TBVpS-3.4
PEG (NY)2.09
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
WACC8.34%
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 Y11.14%
EPS Next 2Y19.7%
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%