Walker & Dunlop (WD) AI Stock Analysis

• Market Cap: $1.56B
• Dividend Yield: 4.42%
• Average Volume (3M): 417.59K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 0.98
• Revenue Growth: 12.08%
• EPS Growth: 20.13%
• Country: US
• Employees: 1,394
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -0.41
• Shares Outstanding: 34,060,400
• 10 Day Avg. Volume: 526,611
• 30 Day Avg. Volume: 417,588
• PEG Ratio: -0.75
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.63
• P/FCF Ratio: -2.95
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $70.00
• Price Target Upside: 52.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.83
• Revenue Forecast (FY): $1.37B

• Rating: 49 Neutral
• Price Target: $50.00 ▲(9.00% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by unstable financial performance—especially the sharp 2025 deterioration in operating/free cash flow—and bearish technicals (price below key moving averages with negative MACD). Offsetting factors are a supportive dividend yield and a more positive earnings-call backdrop showing improved transaction momentum and expectations for a gradual market recovery, albeit with servicing and repurchase-related risks.

Positive Factors

GSE Relationships & Distribution

Material growth in GSE lending demonstrates durable franchise strength in agency channels. Deepening Freddie Mac and Fannie Mae volumes support consistent access to capital markets, predictable fee pipelines, and competitive origination capability that underpin long-term loan placement and advisory income.

Diversified, Tech-Enabled Revenue Streams

Expanding appraisals and small-balance lending shows successful diversification beyond core large-loan origination. Technology-led adoption increases efficiency and scales lower-ticket products, creating stickier client relationships and recurring fee opportunities that support steadier revenue across CRE cycles.

Strengthened Short-Term Funding Flexibility

Extending and enlarging the PNC warehousing line materially improves liquidity and execution capacity for originations. Enhanced short-term funding reduces refinancing risk, supports higher transaction throughput, and preserves market share when capital access is a competitive differentiator in CRE finance.

Negative Factors

Volatile Cash Generation

Large swings in operating and free cash flow undermine funding predictability and increase reliance on external liquidity. Persistent volatility raises refinancing and dividend sustainability risks, complicates capital allocation, and reduces the firm's resilience to prolonged CRE market stress over the medium term.

Elevated and Rising Leverage

Rising leverage vs prior years reduces balance-sheet flexibility and amplifies earnings sensitivity to interest cost and credit losses. Higher debt levels limit strategic optionality, heighten refinancing risk if markets tighten, and pressure return on equity if profitability does not recover sustainably.

Profitability Compression & Choppy Revenue

Material margin compression and uneven revenue growth indicate weaker pricing power and business-cycle exposure. Lower net margins reduce internal cash generation and reinvestment capacity, making earnings more vulnerable to CRE capital market lapses and client dislocations over the medium term.

Walker & Dunlop Business Overview & Revenue Model

Company Description

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. In addition, the company 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, CMBS conduits, and other institutional investors, as well as owners of various types of commercial real estate. Further, 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. Additionally, the company offers property sales brokerage, underwriting and risk management, and servicing and asset management services. Walker & Dunlop, Inc. was founded in 1937 and is headquartered in Bethesda, Maryland.

How the Company Makes Money

Walker & Dunlop generates revenue primarily through fees and commissions earned from its various services, including loan origination, underwriting, and servicing. The company earns significant income from its commercial mortgage banking operations, where it facilitates loans for real estate investors and developers. Additional revenue streams include investment sales commissions, property management fees, and advisory services. The company's strong relationships with GSEs like Fannie Mae and Freddie Mac enable it to access favorable financing terms, enhancing its competitive position in the market. Furthermore, WD often engages in joint ventures and partnerships with other financial institutions and real estate investors, which can provide additional revenue opportunities and expand its service offerings.

Walker & Dunlop Financial Statement Overview

Summary

Mixed fundamentals: income statement and balance sheet are mid-range (revenue and margins have weakened in 2025; leverage ticked up to ~1.30 debt-to-equity), but cash flow is a major concern with sharply negative operating and free cash flow in 2025, indicating elevated volatility and reduced funding flexibility.

Income Statement

Revenue has been choppy: strong growth in 2020–2021, flat in 2022, a notable decline in 2023, a rebound in 2024, and another decline in 2025. Profitability has also compressed materially versus earlier years—net profit margin fell from ~21–23% (2020–2021) to ~10% (2023–2024) and ~4.6% in 2025, with net income dropping sharply in 2025. A positive offset is that 2025 EBITDA margin remained relatively healthy (~25%), suggesting some underlying earnings power despite weaker bottom-line results.

Balance Sheet

Leverage is moderate-to-elevated and has moved around over time. Debt relative to equity improved from very high levels in 2020–2021 to under 1.0 in 2023–2024, but then increased again in 2025 (debt-to-equity ~1.30) alongside higher total debt. Equity has been fairly stable, which provides a cushion, but returns on equity have stepped down meaningfully from strong levels in 2020–2022 to low-single-digits in 2025, reflecting weaker profitability and reducing the balance sheet’s overall efficiency.

Cash Flow

Cash generation is the key weak spot due to high volatility. Operating cash flow swung from deeply negative (2020) to very strong (2021–2022), near zero/negative again in 2023, positive in 2024, and then sharply negative in 2025, with free cash flow also materially negative in 2025. While 2024 showed healthy conversion (positive operating and free cash flow), the 2025 reversal raises risk around consistency of cash earnings and funding flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23B	1.13B	1.05B	1.26B	1.26B
Gross Profit	756.94M	503.56M	471.67M	617.15M	647.71M
EBITDA	382.39M	351.73M	364.45M	486.48M	569.23M
Net Income	57.08M	108.17M	107.36M	213.82M	265.76M
Balance Sheet
Total Assets	5.06B	4.38B	4.05B	4.05B	5.21B
Cash, Cash Equivalents and Short-Term Investments	299.31M	279.27M	328.70M	225.95M	305.63M
Total Debt	2.25B	1.66B	1.47B	1.32B	2.71B
Total Liabilities	3.31B	2.62B	2.31B	2.33B	3.63B
Stockholders Equity	1.74B	1.75B	1.72B	1.69B	1.55B
Cash Flow
Free Cash Flow	-680.08M	116.40M	-16.72M	1.56B	861.25M
Operating Cash Flow	-664.31M	129.36M	-518.00K	1.58B	870.46M
Investing Cash Flow	-77.34M	-38.13M	126.87M	-133.78M	-377.55M
Financing Cash Flow	758.13M	-154.73M	6.77M	-1.58B	-457.73M

Walker & Dunlop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WD, the sentiment is Negative. The current price of 45.87 is below the 20-day moving average (MA) of 51.43, below the 50-day MA of 57.92, and below the 200-day MA of 69.00, indicating a bearish trend. The MACD of -3.97 indicates Positive momentum. The RSI at 33.24 is Neutral, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WD.

Walker & Dunlop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VEL	62 Neutral	$695.25M	7.28	17.03%	―	36.73%	27.50%
PFSI	54 Neutral	$4.56B	16.04	12.18%	0.90%	25.42%	190.85%
RKT	52 Neutral	$41.85B	―	-0.68%	―	22.56%	―
WD	49 Neutral	$1.56B	35.14	3.26%	4.42%	12.08%	20.13%
LDI	46 Neutral	$675.65M	-6.97	-24.39%	―	3.91%	27.78%

Walker & Dunlop Corporate Events

Walker & Dunlop Hosts Virtual Investor Day on Strategy

Walker & Dunlop plans to host a virtual Investor Day on March 10, 2026, featuring senior management presentations and a Q&A session to outline its long-term growth strategy. The event will highlight the firm’s five-year outlook, branded the Journey to ’30, and will be accessible via a live webcast on the company’s investor relations website.

The company also detailed its use of non-GAAP financial metrics, such as adjusted EBITDA and adjusted core EPS, to evaluate performance and benchmark against peers. Management emphasized that these measures, while helpful for trend and strategy analysis, have limitations and should be considered alongside GAAP results, reflecting a continued focus on transparent communication with investors about financial performance.

The most recent analyst rating on (WD) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Walker & Dunlop stock, see the WD Stock Forecast page.

Walker & Dunlop Expands Warehousing Credit Facility with PNC

On March 2, 2026, Walker & Dunlop, Inc. and its operating subsidiary amended their warehousing credit and security agreement with PNC Bank, extending the facility’s maturity to March 1, 2027 and reducing the bulge commitment fee. The amendment also granted the borrower a temporary one-time right, from March 2 to May 1, 2026, to request up to $2.5 billion in additional advances that would increase the warehousing credit limit within a specified cap, while the parent company continues to guarantee the borrower’s obligations and sustains its broader financial services and derivatives relationships with PNC and its affiliates.

The enhanced warehousing capacity and extended maturity date are poised to strengthen Walker & Dunlop’s funding flexibility for its lending activities and reinforce its long-standing banking relationship with PNC. For stakeholders, the larger short-term borrowing capacity and lower bulge commitment fee suggest improved liquidity management and potentially more competitive financing terms in the company’s core warehousing operations.

The most recent analyst rating on (WD) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Walker & Dunlop stock, see the WD Stock Forecast page.

Walker & Dunlop Amends Warehousing Credit Agreement with PNC

On January 29, 2026, Walker & Dunlop, Inc. and its operating subsidiary Walker & Dunlop, LLC entered into a Sixteenth Amendment to their Second Amended and Restated Warehousing Credit and Security Agreement with PNC Bank, National Association, primarily to reduce the Applicable Daily Floating Term SOFR Rate under the facility. The company continues to guarantee the borrower’s obligations under the warehousing agreement, while maintaining a broad financial services relationship with PNC, including cash management, trust services, and ordinary-course derivative and forward delivery arrangements, underscoring Walker & Dunlop’s ongoing efforts to optimize its financing costs and strengthen its funding infrastructure for commercial real estate activities.

The most recent analyst rating on (WD) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Walker & Dunlop stock, see the WD Stock Forecast page.