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 Analysis

Good value with proven track record.


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

Stable Share Price: WD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

WD

-1.0%

US Mortgage

-1.1%

US Market


1 Year Return

27.9%

WD

4.9%

US Mortgage

17.9%

US Market

Return vs Industry: WD exceeded the US Mortgage industry which returned 4.9% over the past year.

Return vs Market: WD exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

WDIndustryMarket
7 Day-6.6%-1.0%-1.1%
30 Day10.1%-1.2%1.4%
90 Day13.5%-3.0%6.9%
1 Year31.2%27.9%7.4%4.9%20.3%17.9%
3 Year92.2%83.7%18.7%10.2%47.8%38.3%
5 Year380.5%359.3%58.4%40.9%71.9%53.0%

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?

45.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WD ($73.62) is trading below our estimate of fair value ($134.16)

Significantly Below Fair Value: 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 (12.7x) compared to the Mortgage industry average (13.6x).

PE vs Market: WD is good value based on its PE Ratio (12.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: WD is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: WD is overvalued based on its PB Ratio (2.1x) 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?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WD's forecast earnings growth (7.4% per year) is above the savings rate (1.7%).

Earnings vs Market: WD's earnings (7.4% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: WD's revenue (7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WD's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WD's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

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

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WD has high quality earnings.

Growing Profit Margin: WD's current net profit margins (21.8%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: WD's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: WD's earnings growth over the past year (11.4%) is below its 5-year average (21.5% per year).

Earnings vs Industry: WD earnings growth over the past year (11.4%) exceeded the Mortgage industry 11.1%.


Return on Equity

High ROE: WD's Return on Equity (16.6%) is considered low.


Return on Assets


Return on Capital Employed


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 1.3x 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?

1.96%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: WD's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WD's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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 (20.7%), 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 (24.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.0yrs

Average management tenure


CEO

Willy Walker (52yo)

13.1yrs

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 ($USD4.05M) is about average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Walker
Chairman & CEO13.1yrsUS$4.05m4.35% $98.8m
Howard Smith
President & Director9.6yrsUS$2.75m1.51% $34.2m
Stephen Theobald
Executive VP & CFO6.8yrsUS$2.03m0.30% $6.7m
Richard Lucas
Executive VP9.3yrsUS$1.90m0.43% $9.8m
Richard Warner
Executive VP & Chief Credit Officer0yrsUS$1.78m0.19% $4.2m
Greg Florkowski
Senior VP of Business Development & Controller0yrsno datano data
Aaron Perlis
Executive VP & CT2.3yrsno datano data
Kelsey Duffey
Vice President of Investor Relations0yrsno datano data
Susan Weber
Chief Marketing Officer0yrsno datano data
Paula Phillips
Executive Vice President of Human Resources11.1yrsno datano data

8.0yrs

Average Tenure

57yo

Average Age

Experienced Management: WD's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Walker
Chairman & CEO13.1yrsUS$4.05m4.35% $98.8m
Howard Smith
President & Director9.6yrsUS$2.75m1.51% $34.2m
Dana Schmaltz
Independent Director9.2yrsUS$214.95k0.17% $3.9m
Ellen Levy
Independent Director0.9yrsno datano data
Michael Warren
Independent Director3yrsUS$204.95k0.0082% $185.4k
Alan Bowers
Lead Independent Director0yrsUS$249.95k0.12% $2.7m
Michael Malone
Independent Director7.3yrsUS$234.95k0.070% $1.6m
John Rice
Independent Director9.6yrsUS$224.95k0.079% $1.8m

9.2yrs

Average Tenure

52.5yo

Average Age

Experienced Board: WD's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.269b
  • Shares outstanding: 30.82m
  • 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. The company offers multifamily properties and commercial real estate finance products, such as first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, small-balance, and bridge/interim loans. It provides multifamily finance for multifamily, manufactured housing communities, student housing, affordable housing, and senior housing properties under the Fannie Mae DUS program; and FHA finance, such as construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing, and healthcare facilities. The company also acts as an intermediary in the placement of commercial real estate debt between institutional sources of capital, including life insurance companies, investment banks, commercial banks, pension funds, commercial mortgage backed securities (CMBS) issuers, and other institutional investors, as well as owners of various types of commercial real estate. In addition, it advises on capital structure; develops the financing package; facilitates negotiations between its client and institutional sources of capital; coordinates due diligence; and assists in closing the transaction, as well as offers interim loans and CMBS products, and investment sales brokerage services. Further, the company offers underwriting and risk management, servicing and asset management, and direct loan originators and correspondent network services. Walker & Dunlop, Inc. was founded in 1937 and is headquartered in Bethesda, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:57
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.