WALKER & DUNLOP INC (WD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WD - US93148P1021 - Common Stock
61.74 USD
+0.47 (+0.77%)
61.74 USD
0 (0%)
WD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. Both the profitability and financial health of WD have multiple concerns. WD is not valued too expensively and it also shows 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.
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 (1.94%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.36%, WD is doing worse than 61.62% 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
With a Profit Margin value of 9.09%, WD perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
In the last couple of years the Profit Margin of WD has declined.
WD has a Operating Margin (16.05%) which 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 | 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.
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.
Compared to 1 year ago, WD has a worse debt to assets ratio.
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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.38%
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 93.94% of the companies in the same industry.
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.
With an excellent Quick ratio value of 6.45, WD belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.45 | ||
| Quick Ratio | 6.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.36% 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.
WD shows a decrease in Revenue. In the last year, the revenue decreased by -4.46%.
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
Based on estimates for the next years, WD will show a very strong growth in Earnings Per Share. The EPS will grow by 28.82% on average per year.
Based on estimates for the next years, WD will show a quite strong growth in Revenue. The Revenue will grow by 10.47% on average per year.
EPS Next Y16.35%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
EPS Next 5YN/A
Revenue Next Year9.16%
Revenue Next 2Y8.74%
Revenue Next 3Y10.47%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.32, which indicates a rather expensive current valuation of WD.
The rest of the industry has a similar Price/Earnings ratio as WD.
WD is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.12, the valuation of WD can be described as correct.
WD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.46. WD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
WD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WD is cheaper than 62.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.87 |
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 28.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y21.47%
EPS Next 3Y28.82%
5. Dividend
5.1 Amount
WD has a Yearly Dividend Yield of 3.35%. Purely for dividend investing, there may be better candidates out there.
The stock price of WD dropped by -28.89% 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 a higher than the industry average which is at 4.68.
Compared to an average S&P500 Dividend Yield of 2.45, WD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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
WD pays out 81.20% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.2%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
61.74
+0.47 (+0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners84.87%
Inst Owner Change2.45%
Ins Owners3.74%
Ins Owner Change-0.4%
Market Cap2.10B
Revenue(TTM)1.24B
Net Income(TTM)112.29M
Analysts80
Price Target95.88 (55.3%)
Short Float %2.31%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend2.68
Dividend Growth(5Y)16.43%
DP81.2%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)1.62%
PT rev (3m)1.62%
EPS NQ rev (1m)-4.89%
EPS NQ rev (3m)-10.56%
EPS NY rev (1m)0.37%
EPS NY rev (3m)5.48%
Revenue NQ rev (1m)3.33%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)3.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 13.12 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.87 |
EPS(TTM)3.37
EY5.46%
EPS(NY)4.71
Fwd EY7.62%
FCF(TTM)-27.86
FCFYN/A
OCF(TTM)-27.5
OCFYN/A
SpS36.27
BVpS51.82
TBVpS-1.61
PEG (NY)1.12
PEG (5Y)N/A
Graham Number62.68
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
WACC7.38%
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 Y16.35%
EPS Next 2Y21.47%
EPS Next 3Y28.82%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-3.47%
Revenue growth 5Y6.74%
Sales Q2Q%15.52%
Revenue Next Year9.16%
Revenue Next 2Y8.74%
Revenue Next 3Y10.47%
Revenue Next 5YN/A
EBIT growth 1Y-10.07%
EBIT growth 3Y-20.07%
EBIT growth 5Y-5.56%
EBIT Next Year349.45%
EBIT Next 3Y74.75%
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.
What is the valuation status of WALKER & DUNLOP INC (WD) stock?
ChartMill assigns a valuation rating of 4 / 10 to WALKER & DUNLOP INC (WD). This can be considered as Fairly Valued.
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 18.32 and the Price/Book (PB) ratio is 1.19.
Can you provide the financial health for WD stock?
The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.