Walker & Dunlop (WD) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: 4.42%
• Average Volume (3M): 206.59K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.96
• Revenue Growth: 12.08%
• EPS Growth: 20.13%
• Country: US
• Employees: 1,394
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): N/A
• Shares Outstanding: 34,064,230
• 10 Day Avg. Volume: 202,591
• 30 Day Avg. Volume: 206,593
• PEG Ratio: -95.24
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 27.66
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 3.83
• Enterprise Value/Gross Profit: 7.15
• Enterprise Value/Ebitda: 12.00
• 1Y Price Target: $77.50
• Price Target Upside: 31.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.43
• Revenue Forecast (FY): $1.36B

• Rating: 65 Neutral
• Price Target: $68.00 ▲(15.43% Upside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is driven primarily by mixed financial quality—healthy margins and modest growth are offset by high leverage and negative operating/free cash flow. Earnings-call trends are encouraging with strong volume and revenue growth, while valuation (including a ~4.26% dividend yield) adds support. Technicals remain a headwind given the stock is well below its 100/200-day averages, suggesting longer-term trend pressure.

Positive Factors

GSE lending expansion

Rapid growth in Freddie Mac and steady Fannie Mae volumes shows deepened GSE relationships and distribution capacity. Durable access to GSE capital supports repeatable origination fee income and competitive financing ability, anchoring core mortgage banking revenue over cycles.

Tech-enabled & product diversification

Strong expansion in appraisals and small-balance lending reflects successful product and channel diversification driven by technology. These higher-growth, fee-oriented segments can lift long-term revenue stability, reduce concentration risk, and improve scalability of fee margins across cycles.

Improved funding terms via warehousing amendment

Lowering the warehousing facility's floating rate reduces funding costs and strengthens short-term liquidity plumbing. Improved financing economics enhance origination capacity and resilience to rate volatility, supporting sustainable lending activity and balance-sheet flexibility.

Negative Factors

Elevated financial leverage

A 1.70 debt-to-equity ratio indicates meaningful leverage that heightens sensitivity to interest rates and funding stress. Over months, elevated leverage can constrain capital allocation, amplify earnings volatility, and limit the firm's ability to absorb CRE market shocks or pursue growth without raising equity.

Negative operating and free cash flow

Sustained negative operating and free cash flow reduces internal funding for originations, servicing, and debt repayment. Reliance on external warehousing and capital markets increases rollover and funding risk, potentially forcing higher funding costs or curtailed growth if market conditions tighten.

MSR decline & repurchase/indemnification risk

Lower mortgage servicing rights reduce recurring revenue and capitalized asset value. Concurrent repurchase/indemnification negotiations create contingent liability exposure and potential capital charges; both trends weaken earnings durability and could require reserves or capital if outcomes are adverse.

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

Moderate fundamentals: revenue growth is modest (TTM +3.8%) with healthy gross margin (49.7%) and stable net margin (9.4%), but leverage is elevated (debt-to-equity 1.70) and operating/free cash flow are negative in the TTM period, raising liquidity and resilience risk.

Income Statement

Walker & Dunlop's income statement shows moderate growth with a revenue increase of 3.8% in the TTM period. Gross profit margin is healthy at 49.7%, and net profit margin is stable at 9.4%. However, EBIT and EBITDA margins have slightly decreased compared to previous years, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.70, indicating significant leverage. Return on equity is modest at 6.5%, suggesting limited profitability relative to equity. The equity ratio is not explicitly calculated but appears stable given the equity and asset figures.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM period. Despite a high free cash flow to net income ratio of 1.01, the negative cash flow figures indicate potential liquidity issues. The free cash flow growth rate is positive, but this is due to prior negative values.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.13B	1.05B	1.26B	1.26B	1.08B
Gross Profit	662.60M	503.56M	471.67M	617.15M	647.71M	606.34M
EBITDA	394.67M	351.73M	364.45M	486.48M	569.23M	499.28M
Net Income	114.99M	108.17M	107.36M	213.82M	265.76M	246.18M
Balance Sheet
Total Assets	5.80B	4.38B	4.05B	4.05B	5.21B	4.65B
Cash, Cash Equivalents and Short-Term Investments	274.83M	279.27M	328.70M	225.95M	305.63M	321.10M
Total Debt	3.01B	1.66B	1.47B	1.32B	2.71B	2.81B
Total Liabilities	4.02B	2.62B	2.31B	2.33B	3.63B	3.45B
Stockholders Equity	1.77B	1.75B	1.72B	1.69B	1.55B	1.20B
Cash Flow
Free Cash Flow	-949.30M	116.40M	-16.72M	1.56B	861.25M	-1.41B
Operating Cash Flow	-936.86M	129.36M	-518.00K	1.58B	870.46M	-1.41B
Investing Cash Flow	-65.83M	-38.13M	126.87M	-133.78M	-377.55M	115.18M
Financing Cash Flow	1.07B	-154.73M	6.77M	-1.58B	-457.73M	1.52B

Walker & Dunlop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.91
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 58.91 is below the 20-day moving average (MA) of 62.98, below the 50-day MA of 62.62, and below the 200-day MA of 71.60, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 43.81 is Neutral, 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
VEL	72 Outperform	$723.93M	7.83	16.04%	―	36.73%	27.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WD	65 Neutral	$2.14B	18.64	6.46%	4.42%	12.08%	20.13%
PFSI	58 Neutral	$4.76B	9.81	12.55%	0.90%	25.42%	190.85%
RKT	49 Neutral	$49.87B	218.26	-2.15%	―	22.56%	―
LDI	47 Neutral	$633.15M	-5.16	-25.72%	―	3.91%	27.78%

Walker & Dunlop Corporate Events

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.