NYSE:WD

Stock Analysis Report

Executive Summary

Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate loans for owners and developers of real estate in the United States.

Snowflake

Fundamentals

Good value second-rate dividend payer.


Similar Companies

Share Price & News

How has Walker & Dunlop's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

WD

1.6%

US Mortgage

0.4%

US Market


1 Year Return

26.2%

WD

15.2%

US Mortgage

6.9%

US Market

Return vs Industry: WD exceeded the US Mortgage industry which returned 15.2% over the past year.

Return vs Market: WD exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

WDIndustryMarket
7 Day2.0%1.6%0.4%
30 Day6.6%0.7%-1.1%
90 Day8.5%4.2%-0.5%
1 Year29.0%26.2%17.7%15.2%9.3%6.9%
3 Year158.5%149.4%41.2%31.8%45.8%36.4%
5 Year300.9%286.8%71.5%53.4%62.9%45.1%

Price Volatility Vs. Market

How volatile is Walker & Dunlop's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Walker & Dunlop undervalued compared to its fair value and its price relative to the market?

42.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WD ($60.19) is trading below our estimate of fair value ($105.16)

Significantly Undervalued: WD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WD is good value based on its PE Ratio (11x) compared to the Mortgage industry average (14.4x).

PE vs Market: WD is good value based on its PE Ratio (11x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: WD is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: WD is overvalued based on its PB Ratio (1.9x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Walker & Dunlop forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WD's forecast earnings growth (5.8% per year) is above the savings rate (2.7%).

Earnings vs Market: WD's earnings (5.8% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: WD's earnings are forecast to grow, but not significantly.

Revenue vs Market: WD's revenue (5.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WD's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WD's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Walker & Dunlop performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WD's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: WD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WD had negative earnings growth (-17.9%) over the past year, making it difficult to compare to the Mortgage industry average (31.5%).


Return on Equity

High ROE: WD's Return on Equity (17.6%) is considered low.


Return on Assets

ROA vs Industry: WD has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate WD's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Walker & Dunlop's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: WD has a low level of unsold assets or inventory.

Debt Coverage by Assets: WD's debt is covered by short term assets (assets are 1.110630x debt).


Financial Institutions Analysis

Asset Level: WD's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if WD has a sufficient allowance for bad loans.

Low Risk Liabilities: WD reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if WD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WD has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if WD has an appropriate level of bad loans.


Next Steps

Dividend

What is Walker & Dunlop's current dividend yield, its reliability and sustainability?

1.99%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WD's dividend (1.99%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WD's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: Whilst dividend payments have been stable, WD has been paying a dividend for less than 10 years.

Growing Dividend: WD's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.1%), WD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WD's dividends in 3 years are forecast to be well covered by earnings (22.9% payout ratio).


Next Steps

Management

What is the CEO of Walker & Dunlop's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Willy Walker (52yo)

12.8yrs

Tenure

US$4,054,426

Compensation

Mr. William Mallory Walker, also known as Willy, is Chairman and Chief Executive Officer of Walker & Dunlop, LLC (“Walker & Dunlop”). Mr. Walker received the Ernst & Young Entrepreneur of the Year award in ...


CEO Compensation Analysis

Compensation vs. Market: Willy's total compensation ($USD4.05M) is about average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Willy's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.7yrs

Average Tenure

57yo

Average Age

Experienced Management: WD's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

52.5yo

Average Age

Experienced Board: WD's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: WD insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$10,21211 Sep 19
Alan Bowers
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares198.12
Max PriceUS$53.03
SellUS$572,59615 Aug 19
Stephen Theobald
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$57.26
SellUS$5,075,61415 Aug 19
William Walker
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares90,389
Max PriceUS$57.23
BuyUS$10,15406 Jun 19
Alan Bowers
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares196.22
Max PriceUS$51.77
SellUS$4,000,00223 May 19
Howard Smith
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares76,176
Max PriceUS$52.51
BuyUS$9,57211 Mar 19
Alan Bowers
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares180.59
Max PriceUS$53.48
SellUS$580,30811 Mar 19
Richard Warner
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Credit Officer
Shares11,008
Max PriceUS$52.72
BuyUS$42,20217 Dec 18
Dana Schmaltz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$42.20

Ownership Breakdown


Management Team

  • Willy Walker (52yo)

    Chairman & CEO

    • Tenure: 12.8yrs
    • Compensation: US$4.05m
  • Richard Lucas (54yo)

    Executive VP

    • Tenure: 8.9yrs
    • Compensation: US$1.90m
  • Howard Smith (60yo)

    President & Director

    • Tenure: 9.3yrs
    • Compensation: US$2.75m
  • Susan Weber

    Chief Marketing Officer

    • Tenure: 0yrs
  • Richard Warner (64yo)

    Executive VP & Chief Credit Officer

    • Tenure: 0yrs
    • Compensation: US$1.78m
  • Paula Phillips

    Executive Vice President of Human Resources

    • Tenure: 10.8yrs
  • Steve Theobald (57yo)

    Executive VP & CFO

    • Tenure: 6.5yrs
    • Compensation: US$2.03m
  • Aaron Perlis

    Executive VP & CT

    • Tenure: 1.9yrs
  • Greg Florkowski

    Senior VP of Business Development & Controller

    • Tenure: 0yrs
  • Kelsey Duffey

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Dana Schmaltz (52yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$214.95k
  • Ellen Levy (50yo)

    Independent Director

    • Tenure: 0.6yrs
  • Michael Warren (51yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$204.95k
  • Willy Walker (52yo)

    Chairman & CEO

    • Tenure: 12.8yrs
    • Compensation: US$4.05m
  • Alan Bowers (64yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$249.95k
  • Mike Malone (65yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$234.95k
  • Howard Smith (60yo)

    President & Director

    • Tenure: 9.3yrs
    • Compensation: US$2.75m
  • John Rice (53yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$224.95k

Company Information

Walker & Dunlop, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Walker & Dunlop, Inc.
  • Ticker: WD
  • Exchange: NYSE
  • Founded: 1937
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.850b
  • Shares outstanding: 30.73m
  • Website: https://www.walkerdunlop.com

Number of Employees


Location

  • Walker & Dunlop, Inc.
  • 7501 Wisconsin Avenue
  • Suite 1200E
  • Bethesda
  • Maryland
  • 20814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2010
5WDDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2010

Biography

Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate loans for owners and developers of real estate in the United States. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:19
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.