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Walker & Dunlop (WD)
:WD
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Walker & Dunlop
(NYSE:WD)
Select Model
Select Model
Rating:66Neutral
Price Target:
$95.00
▲(15.49% Upside)
Walker & Dunlop's overall stock score is driven by strong technical analysis and a positive earnings call outlook. Financial performance is mixed, with challenges in cash flow and leverage. Valuation is moderate, and recent corporate events indicate strategic financial management.
Positive Factors
Revenue Growth
Strong revenue and earnings growth indicate robust demand for services and effective scaling, supporting long-term business expansion.
Market Position
Significant increase in transaction volume strengthens Walker & Dunlop's market position, enhancing its competitive edge in real estate finance.
Strategic Liquidity Management
Enhanced liquidity through strategic financial agreements improves financial flexibility, supporting growth and operational resilience.
Negative Factors
Cash Flow Challenges
Negative cash flows highlight liquidity constraints, potentially affecting the company's ability to invest in growth and manage debt.
Decline in Servicing Revenues
Declining servicing revenues may impact the company's steady income stream, challenging its ability to maintain profitability.
Investment Management Revenue Decline
Significant drop in investment management revenues suggests reduced effectiveness in this segment, potentially affecting overall earnings.
Walker & Dunlop (WD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.85B
Dividend Yield3.23%
Average Volume (3M)245.92K
Price to Earnings (P/E)25.8
Beta (1Y)1.08
Revenue Growth11.18%
EPS Growth24.94%
CountryUS
Employees1,394
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.99
Shares Outstanding34,069,120
10 Day Avg. Volume288,517
30 Day Avg. Volume245,921
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue3.45
Enterprise Value/Gross Profit5.51
Enterprise Value/Ebitda10.08
Forecast
1Y Price Target
$105.00Price Target Upside27.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Walker & Dunlop Business Overview & Revenue Model
Company DescriptionWalker & Dunlop (WD) is a leading commercial real estate services and finance company based in the United States. Specializing in multifamily and commercial property financing, the company offers a broad range of services, including loan origination, underwriting, and servicing. WD operates across various sectors, including multifamily housing, healthcare, and retail, providing tailored financial solutions to meet the diverse needs of property owners and investors.
How the Company Makes MoneyWalker & Dunlop generates revenue primarily through its loan origination and servicing activities. The company earns fees from originating loans for commercial properties, which typically includes a percentage of the loan amount. Additionally, it collects servicing fees for managing loans after they are originated, which provides a steady income stream. Other revenue sources include advisory services, property management, and capital markets activities. Significant partnerships with government agencies, such as Fannie Mae and Freddie Mac, enhance WD's ability to offer competitive financing options, further contributing to its earnings.
Walker & Dunlop Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant growth in transaction volumes and key metrics. However, there are challenges related to declines in adjusted metrics and certain revenue streams due to external factors like interest rates.Q2-2025 Updates
Positive Updates
Significant Increase in Transaction Volume
Q2 total transaction volume reached $14 billion, up 65% from Q2 2024 and more than double that of Q1 2025.
Revenue and Earnings Growth
Revenue increased by 18% and diluted EPS grew by 48% year-over-year, driven by significant transaction volume and economies of scale.
Multifamily Sector Performance
Record absorption of 227,000 units in Q2 2025 and 794,000 over the past year, with 2.7% growth in renter households.
Growth in Capital Markets Segment
Debt financing volume increased by 68% and property sales volume by 51% year-over-year, leading to a 46% growth in segment revenue.
Expansion of Technology-Enabled Businesses
Appraisal revenues increased by 61% and small balance lending revenue by 99% in Q2.
Negative Updates
Decline in Adjusted Metrics
Adjusted EBITDA declined by 5% and adjusted core EPS decreased by 7% due to lower short-term interest rates impacting escrow earnings.
Decrease in Servicing & Asset Management Revenues
Total SAM revenues declined 5% from Q2 2024, primarily due to a 12% decrease in placement fees tied to lower Fed funds rate.
Investment Management Revenue Decline
Investment management fees decreased by 49% in Q2 due to fewer affordable asset dispositions and reduced realization-related revenues.
Company Guidance
During the Walker & Dunlop Second Quarter 2025 Earnings Call, the company reported significant growth in various metrics, highlighting their strong market position and strategic initiatives. Total transaction volume reached $14 billion, marking a 65% increase from Q2 2024 and doubling the volume from the first quarter of 2025. This growth drove an 18% increase in revenue and a 48% rise in diluted earnings per share to $0.99. Despite a 5% decline in adjusted EBITDA and a 7% drop in adjusted core EPS due to a decrease in short-term rates, the company emphasized the importance of noncash mortgage servicing rights, which are expected to boost future cash flows. The multifamily sector saw record absorption, with 227,000 units absorbed in Q2 2025, driven by a 2.7% increase in renter households. Walker & Dunlop's brokered debt volume grew by 64% year-over-year to $6.3 billion, and GSE lending volume increased to $4.9 billion, the highest in 11 quarters. The company maintained a strong servicing portfolio of $137 billion, with a focus on expanding its affordable housing platform. As they continue to leverage technology and expand internationally, particularly in Europe, Walker & Dunlop remains poised for further growth in the evolving commercial real estate market.Walker & Dunlop Financial Statement Overview
Summary
Walker & Dunlop's financial performance is mixed. The income statement shows moderate recovery with improved margins, but the balance sheet and cash flow statements highlight challenges with leverage and liquidity. The company needs to enhance profitability and cash flow management.Income Statement
Walker & Dunlop's income statement shows moderate performance with a recent TTM revenue growth rate of 2.25%, indicating a slight recovery from previous declines. The gross profit margin improved significantly to 62.6% in TTM, reflecting better cost management. However, the net profit margin slightly decreased to 9.38%, suggesting pressure on profitability. The EBIT and EBITDA margins are stable, showing consistent operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 1.13 in TTM, indicating a manageable level of leverage compared to previous years. Return on equity is relatively low at 6.31%, reflecting limited profitability on shareholder investments. The equity ratio stands at 37.4%, suggesting a balanced capital structure but with room for improvement in equity financing.58
Neutral
Cash Flow
Cash flow analysis highlights challenges with negative operating and free cash flows in TTM, indicating liquidity issues. The free cash flow to net income ratio is positive at 1.06, suggesting that despite negative cash flows, the company is generating enough cash relative to its net income. However, the decline in free cash flow growth rate by 32.5% is concerning and indicates potential cash management issues.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.17B | 1.13B | 1.05B | 1.26B | 1.26B | 1.08B |
| Gross Profit | 730.88M | 503.56M | 471.67M | 617.15M | 647.71M | 606.34M |
| EBITDA | 399.16M | 369.23M | 363.50M | 500.00M | 569.23M | 499.28M |
| Net Income | 109.55M | 108.17M | 107.36M | 213.82M | 265.76M | 246.18M |
Balance Sheet | ||||||
| Total Assets | 4.68B | 4.38B | 4.05B | 4.05B | 5.21B | 4.65B |
| Cash, Cash Equivalents and Short-Term Investments | 233.71M | 279.27M | 328.70M | 225.95M | 305.63M | 321.10M |
| Total Debt | 1.99B | 1.66B | 1.47B | 1.32B | 2.68B | 2.81B |
| Total Liabilities | 2.91B | 2.62B | 2.31B | 2.33B | 3.47B | 3.45B |
| Stockholders Equity | 1.75B | 1.75B | 1.72B | 1.69B | 1.55B | 1.20B |
Cash Flow | ||||||
| Free Cash Flow | -202.85M | 116.40M | -16.72M | 1.56B | 861.25M | -1.41B |
| Operating Cash Flow | -190.75M | 129.36M | -518.00K | 1.58B | 870.46M | -1.41B |
| Investing Cash Flow | -66.45M | -38.13M | 126.87M | -133.78M | -377.55M | 115.18M |
| Financing Cash Flow | 272.48M | -154.73M | 6.77M | -1.58B | -457.73M | 1.52B |
Walker & Dunlop Technical Analysis
Neutral
82.26
Price Trends
81.44
Positive
75.84
Positive
81.24
Positive
Market Momentum
0.62
Positive
44.37
Neutral
3.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WD, the sentiment is Neutral. The current price of 82.26 is below the 20-day moving average (MA) of 85.18, above the 50-day MA of 81.44, and above the 200-day MA of 81.24, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 3.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WD.
Walker & Dunlop Risk Analysis
Walker & Dunlop disclosed 29 risk factors in its most recent earnings report. Walker & Dunlop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Walker & Dunlop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $2.85B | 25.77 | 6.26% | 3.23% | 11.18% | 24.94% | |
65 Neutral | 13.61B | 23.73 | 11.18% | ― | 2.27% | -17.46% | |
64 Neutral | 6.38B | 17.10 | 8.13% | 0.98% | 20.77% | 96.22% | |
61 Neutral | 41.23B | -391.17 | >-0.01% | ― | 21.52% | -103.65% | |
58 Neutral | 1.08B | -9.46 | -15.29% | ― | 6.60% | 44.77% | |
58 Neutral | 1.24B | 51.13 | 2.12% | ― | 34.62% | -7.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
WD
Walker & Dunlop
82.26
-26.37
-24.28%
PFSI
PennyMac Financial
122.59
10.13
9.01%
LDI
loanDepot
3.20
0.51
18.96%
VEL
Velocity Financial
18.67
-0.88
-4.50%
RKT
Rocket Companies
19.05
1.14
6.37%
GHLD
Guild Holdings
19.94
4.11
25.96%
Walker & Dunlop Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Walker & Dunlop Amends Financial Agreement with JPMorgan
Positive
Aug 29, 2025
On August 26, 2025, Walker & Dunlop, LLC, a subsidiary of Walker & Dunlop, Inc., entered into an amendment with JPMorgan Chase Bank, N.A. to revise their existing financial agreement, temporarily increasing the Uncommitted Facility Amount to $1.45 billion until November 20, 2025, after which it will revert to $950 million. This amendment is part of an ongoing relationship between the two entities, which includes various financial services and credit facilities, indicating a strategic move to enhance liquidity and financial flexibility for Walker & Dunlop.
Executive/Board ChangesBusiness Operations and Strategy
Walker & Dunlop CEO Receives Performance Stock Award
Neutral
Aug 28, 2025
On August 24, 2025, Walker & Dunlop announced that CEO William Walker received a performance stock unit award under the company’s 2024 Equity Incentive Plan. This award is contingent on the company’s stock performance surpassing the S&P 600 Small Cap Financials Index by at least 1.0 percentage point over a three-year period ending in 2028, potentially impacting company operations and stakeholder interests by aligning executive incentives with shareholder returns.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.