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WD

Walker & DunlopNYSE:WD Stock Report

Market Cap

US$3.7b

7D

6.2%

1Y

126.0%

Updated

27 Sep, 2021

Data

Company Financials +
WD fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends3/6

WD Overview

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

Walker & Dunlop Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Walker & Dunlop
Historical stock prices
Current Share PriceUS$115.27
52 Week HighUS$50.15
52 Week LowUS$116.70
Beta1.31
1 Month Change11.93%
3 Month Change9.98%
1 Year Change126.02%
3 Year Change119.31%
5 Year Change351.33%
Change since IPO1,064.34%

Recent News & Updates

Shareholder Returns

WDUS MortgageUS Market
7D6.2%0.7%0.1%
1Y126.0%23.1%35.3%

Return vs Industry: WD exceeded the US Mortgage industry which returned 23.1% over the past year.

Return vs Market: WD exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is WD's price volatile compared to industry and market?
WD volatility
WD Beta1.31
Industry Beta1.12
Market Beta1

Stable Share Price: WD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WD's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1937999Willy Walkerhttps://www.walkerdunlop.com

Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate financing products and services for owners and developers of real estate in the United States. The company offers first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, small-balance, and bridge/interim loans. It also provides multifamily finance for manufactured housing communities, student housing, affordable housing, and senior housing properties under the Fannie Mae’s DUS program; and construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing, and healthcare facilities.

Walker & Dunlop Fundamentals Summary

How do Walker & Dunlop's earnings and revenue compare to its market cap?
WD fundamental statistics
Market CapUS$3.67b
Earnings (TTM)US$242.66m
Revenue (TTM)US$1.10b

15.1x

P/E Ratio

2.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WD income statement (TTM)
RevenueUS$1.10b
Cost of RevenueUS$0
Gross ProfitUS$1.10b
ExpensesUS$859.34m
EarningsUS$242.66m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.63
Gross Margin100.00%
Net Profit Margin22.02%
Debt/Equity Ratio165.8%

How did WD perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

22%

Payout Ratio

Valuation

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

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WD ($112.26) is trading below our estimate of fair value ($173.2)

Significantly Below Fair Value: WD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WD is poor value based on its PE Ratio (14.7x) compared to the US Mortgage industry average (12.1x).

PE vs Market: WD is good value based on its PE Ratio (14.7x) compared to the US market (17.9x).


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 (2.8x) compared to the US Mortgage industry average (1.1x).


Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WD's forecast earnings growth (8.5% per year) is above the savings rate (2%).

Earnings vs Market: WD's earnings (8.5% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: WD's revenue (8.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: WD's revenue (8.4% 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 (17.9%).


Past Performance

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

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WD has high quality earnings.

Growing Profit Margin: WD's current net profit margins (22%) are higher than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: WD's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: WD's earnings growth over the past year (27.3%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: WD earnings growth over the past year (27.3%) underperformed the Mortgage industry 34%.


Return on Equity

High ROE: WD's Return on Equity (19.4%) is considered low.


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


Financial Institutions Analysis

Asset Level: WD's Assets to Equity ratio (3x) 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, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if WD has an appropriate level of Loans to Assets ratio.

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

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


Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WD's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: WD's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.8%), 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 (23% payout ratio).


Next Steps

Management

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

9.6yrs

Average management tenure


CEO

Willy Walker (54 yo)

14.67yrs

Tenure

US$6,954,317

Compensation

Mr. William Mallory Walker, also known as Willy, serves as Director at Walker & Dunlop, Inc. since July 2010. He is Chairman & CEO of Walker & Dunlop, LLC. Mr. Walker received the Ernst & Young Entrepreneu...


CEO Compensation Analysis

Compensation vs Market: Willy's total compensation ($USD6.95M) is above average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Willy's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WD's management team is seasoned and experienced (9.6 years average tenure).


Board Members

Experienced Board: WD's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Walker & Dunlop, Inc.'s 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$3.668b
  • Shares outstanding: 31.82m
  • Website: https://www.walkerdunlop.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:04
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.