WALKER & DUNLOP INC (WD)
US93148P1021 - Common Stock
Taking everything into account, WD scores 4 out of 10 in our fundamental rating. WD was compared to 102 industry peers in the Financial Services industry. While WD seems to be doing ok healthwise, there are quite some concerns on its profitability. WD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WD had positive earnings in the past year.
In the past year WD had a positive 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
The Return On Assets of WD (2.36%) is better than 60.78% of its industry peers.
Looking at the Return On Equity, with a value of 5.26%, WD is in line with its industry, outperforming 42.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.26% | ||
| 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
WD's Profit Margin of 8.64% is in line compared to the rest of the industry. WD outperforms 52.94% of its industry peers.
WD's Profit Margin has declined in the last couple of years.
The Operating Margin of WD (17.97%) is better than 63.73% of its industry peers.
WD's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.97% | ||
| PM (TTM) | 8.64% | ||
| 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.
Compared to 1 year ago, WD has more shares outstanding
Compared to 5 years ago, WD has more shares outstanding
WD has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WD is 2.28, which is a good value as it means it would take WD, 2.28 years of fcf income to pay off all of its debts.
WD has a Debt to FCF ratio of 2.28. This is in the better half of the industry: WD outperforms 73.53% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that WD is somewhat dependend on debt financing.
WD's Debt to Equity ratio of 0.75 is in line compared to the rest of the industry. WD outperforms 47.06% of its industry peers.
Even though the debt/equity ratio score it not favorable for WD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.46%
2.3 Liquidity
A Current Ratio of 6.43 indicates that WD has no problem at all paying its short term obligations.
WD has a better Current ratio (6.43) than 97.06% 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.
Looking at the Quick ratio, with a value of 6.43, WD belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 6.43 |
3. Growth
3.1 Past
The earnings per share for WD have decreased strongly by -28.97% in the last year.
The Earnings Per Share has been decreasing by -8.84% on average over the past years.
Looking at the last year, WD shows a very negative growth in Revenue. The Revenue has decreased by -11.40% in the last year.
WD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.77% yearly.
EPS 1Y (TTM)-28.97%
EPS 3Y-25.5%
EPS 5Y-8.84%
EPS growth Q2Q50.63%
Revenue 1Y (TTM)-11.4%
Revenue growth 3Y-0.91%
Revenue growth 5Y7.77%
Revenue growth Q2Q-4.46%
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 27.64% on average per year.
WD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
EPS Next Y14.23%
EPS Next 2Y27.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.72%
Revenue Next 2Y8.55%
Revenue Next 3YN/A
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.
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
A Price/Earnings ratio of 28.02 indicates a quite expensive valuation of WD.
The rest of the industry has a similar Price/Earnings ratio as WD.
When comparing the Price/Earnings ratio of WD to the average of the S&P500 Index (28.56), we can say WD is valued inline with the index average.
A Price/Forward Earnings ratio of 19.36 indicates a rather expensive valuation of WD.
WD's Price/Forward Earnings is on the same level as the industry average.
WD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.02 | ||
| Fwd PE | 19.36 |
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 73.53% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WD is valued cheaply inside the industry as 89.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.94 | ||
| EV/EBITDA | 10.58 |
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.
WD's earnings are expected to grow with 27.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y27.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 2.66%.
Compared to an average industry Dividend Yield of 3.40, WD pays a bit more dividend than its industry peers.
WD's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of WD is nicely growing with an annual growth rate of 19.75%!
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)19.75%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
WD pays out 94.94% 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.
DP94.94%
EPS Next 2Y27.64%
EPS Next 3YN/A
WALKER & DUNLOP INC
NYSE:WD (5/14/2024, 6:07:33 PM)
After market: 101 +0.7 (+0.7%)100.3
+2.29 (+2.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.02 | ||
| Fwd PE | 19.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.97% | ||
| PM (TTM) | 8.64% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.43 | ||
| Quick Ratio | 6.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.97%
EPS 3Y-25.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.4%
Revenue growth 3Y-0.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y