WD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. WD has a bad profitability rating. Also its financial health evaluation is rather negative. WD is quite expensive at the moment. It does show a decent growth rate. Finally WD also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

WD had positive earnings in the past year.
In the past year WD has reported a negative cash flow from operations.
In the past 5 years WD has always been profitable.
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.
WD's Return On Equity of 6.36% is in line compared to the rest of the industry. WD outperforms 40.21% of its industry peers.

		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 has a Profit Margin of 9.09%. This is comparable to the rest of the industry: WD outperforms 50.52% of its industry peers.
In the last couple of years the Profit Margin of WD has declined.
Looking at the Operating Margin, with a value of 16.05%, WD is in line with its industry, outperforming 56.70% of the companies in the same 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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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's Debt to Equity ratio of 1.70 is on the low side compared to the rest of the industry. WD is outperformed by 64.95% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.7
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACCN/A

WACC8.37%

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.
WD's Current ratio of 6.45 is amongst the best of the industry. WD outperforms 94.85% of its industry peers.
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 94.85% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.45
Quick Ratio	6.45

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WACC

Debt/Equity

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Altman-Z score

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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.
The earnings per share for WD have been decreasing by -10.16% on average. This is quite bad
The Revenue has decreased by -4.46% in the past 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

WD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.38% yearly.
WD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.82% yearly.

EPS Next Y6.12%

EPS Next 2Y21.03%

EPS Next 3Y24.38%

EPS Next 5YN/A

Revenue Next Year11.26%

Revenue Next 2Y10.73%

Revenue Next 3Y9.82%

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 accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.18, which indicates a rather expensive current valuation of WD.
WD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.39, WD is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.83 indicates a correct valuation of WD.
WD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, WD is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	19.18
Fwd PE	13.83

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 61.86% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	11.13

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 24.38% in the coming years. This may justify a more expensive valuation.

PEG (NY)3.13

PEG (5Y)N/A

EPS Next 2Y21.03%

EPS Next 3Y24.38%

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5. Dividend

5.1 Amount

WD has a Yearly Dividend Yield of 4.17%, which is a nice return.
WD's Dividend Yield is rather good when compared to the industry average which is at 2.09. WD pays more dividend than 84.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, WD pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.17%

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

81.20% of the earnings are spent on dividend by WD. 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 2Y21.03%

EPS Next 3Y24.38%

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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 19.18 and the Price/Book (PB) ratio is 1.25.

Can you provide the financial health for WD stock?

The financial health rating of WALKER & DUNLOP INC (WD) is 3 / 10.