NYSE:WD

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Executive Summary

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


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WD's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-9.5%

WD

0.7%

US Mortgage

-2.7%

US Market


1 Year Return

23.6%

WD

-9.1%

US Mortgage

21.2%

US Market

Return vs Industry: WD exceeded the US Mortgage industry which returned -8% over the past year.

Return vs Market: WD matched the US Market which returned 24.3% over the past year.


Shareholder returns

WDIndustryMarket
7 Day-9.5%0.7%-2.7%
30 Day-11.8%4.0%1.8%
90 Day21.9%16.7%16.4%
1 Year26.8%23.6%-6.6%-9.1%23.9%21.2%
3 Year88.1%76.2%12.2%3.3%43.7%34.2%
5 Year287.0%262.4%74.2%49.7%124.3%99.2%

Long-Term 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?

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WD ($81.84) is trading below our estimate of fair value ($127.17)

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 (12.4x) compared to the US Mortgage industry average (13.1x).

PE vs Market: WD is good value based on its PE Ratio (12.4x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: WD is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: WD is overvalued based on its PB Ratio (2.2x) compared to the US Mortgage industry average (0.9x).


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WD's forecast earnings growth (6.8% per year) is above the savings rate (2%).

Earnings vs Market: WD's earnings (6.8% per year) are forecast to grow slower than the US market (21.3% 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 (10.6% 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 (14.7%).


Next Steps

Past Performance

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

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WD has a high level of non-cash earnings.

Growing Profit Margin: WD's current net profit margins (22.1%) are higher than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: WD's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: WD's earnings growth over the past year (17.2%) exceeds its 5-year average (15.4% per year).

Earnings vs Industry: WD earnings growth over the past year (17.2%) exceeded the Mortgage industry 3.2%.


Return on Equity

High ROE: WD's Return on Equity (18.5%) is considered low.


Next Steps

  • Explore strong past performing companies in the Banks industry.

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 (4.8x) 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.


Next Steps

Dividend

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

1.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WD's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: WD's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (3.87%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.9%), 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 (21.2% payout ratio).


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Willy Walker (53 yo)

14yrs

Tenure

US$4,855,806

Compensation

Mr. William Mallory Walker, also known as Willy, is Chairman & CEO of Walker & Dunlop, LLC. Mr. Walker received the Ernst & Young Entrepreneur of the Year award in 2011 and was named “Financier of the Year...


CEO Compensation Analysis

Compensation vs Market: Willy's total compensation ($USD4.86M) is about average for companies of similar size in the US market ($USD5.03M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Walker
Chairman & CEO14yrsUS$4.86m5.01%
$ 136.2m
Howard Smith
President & Director10.5yrsUS$3.04m1.41%
$ 38.2m
Stephen Theobald
Executive VP & CFO7.75yrsUS$2.18m0.22%
$ 6.0m
Richard Lucas
Executive VP10.17yrsUS$2.18m0.37%
$ 10.0m
Greg Florkowski
Executive VP of Business Development & Controllerno datano datano data
Aaron Perlis
Executive VP & CTO3.17yrsno datano data
Kelsey Duffey
Vice President of Investor Relationsno datano datano data
Susan Weber
Chief Marketing Officerno datano datano data
Paula Pryor
Executive VP & Chief Human Resources Officer12yrsno data0.025%
$ 669.8k
Michael Palmer
Senior Vice President of Asset Managementno datano datano data
Andrew Tapley
Managing Directorno datano datano data
Debra Casale
Senior VP & GSE Closing Managerno datano datano data

9.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: WD's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Walker
Chairman & CEO14yrsUS$4.86m5.01%
$ 136.2m
Howard Smith
President & Director10.5yrsUS$3.04m1.41%
$ 38.2m
Dana Schmaltz
Independent Director10.08yrsUS$214.96k0.21%
$ 5.6m
Ellen Levy
Independent Director1.83yrsUS$246.91kno data
Michael Warren
Independent Director3.92yrsUS$209.96k0.0081%
$ 219.5k
Alan Bowers
Lead Independent Directorno dataUS$249.96k0.13%
$ 3.7m
Michael Malone
Independent Director8.17yrsUS$234.96k0.10%
$ 2.7m
John Rice
Independent Director10.5yrsUS$224.96k0.087%
$ 2.4m
Michael Link
Director0.17yrno datano data

9.1yrs

Average Tenure

53.5yo

Average Age

Experienced Board: WD's board of directors are considered experienced (9.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WD insiders have only sold shares 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$2.720b
  • Shares outstanding: 31.23m
  • 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, provides a range of multifamily and other commercial real estate financing products for owners and developers of real estate in the United States. The compa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/28 01:02
End of Day Share Price2021/01/27 00:00
Earnings2020/09/30
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.