Walker & Dunlop (WD) AI Stock Analysis

• Market Cap: $2.90B
• Dividend Yield: 3.2%
• Average Volume (3M): 259.35K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.13
• Revenue Growth: 11.18%
• EPS Growth: 24.94%
• Country: US
• Employees: 1,394
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Mortgages
• EPS (TTM): 0.99
• Shares Outstanding: 34,069,120
• 10 Day Avg. Volume: 211,815
• 30 Day Avg. Volume: 259,348
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 5.51
• Enterprise Value/Ebitda: 10.08
• 1Y Price Target: $99.67
• Price Target Upside: 21.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $89.00 ▲(8.52% Upside)

Walker & Dunlop's overall stock score of 66 reflects a combination of moderate financial performance and positive earnings call insights. The technical analysis suggests potential upward momentum, while the valuation is reasonable. The recent corporate event further supports financial flexibility, enhancing the company's strategic position.

Positive Factors

Business Diversification

WD's diverse business operations, including debt brokerage, investment sales, and asset management, contribute to over 70% of its cash flow from servicing and associated fees.

Market Position

WD has a strong market position with an 8% market share of multifamily debt originations, ranking #1 with Fannie Mae and #4 with Freddie Mac.

Valuation

WD's valuation is considered attractive at 13.3-15.5x 2025-2026E cash earnings, with potential for further improvement if GSE volumes exceed estimates.

Negative Factors

Market Supply

The multifamily market is expected to see an uptick in transactions due to projected increases in demand and a slowdown in supply, benefiting companies like WD.

Walker & Dunlop Business Overview & Revenue Model

Company Description

Walker & 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 Money

Walker & 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 82.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 82.01 is below the 20-day moving average (MA) of 82.73, above the 50-day MA of 77.00, and below the 200-day MA of 82.98, indicating a bullish trend. The MACD of 2.56 indicates Positive momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 47.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$17.88B	11.66	10.46%	3.76%	9.66%	1.70%
PFSI	67 Neutral	$5.69B	15.26	10.05%	1.06%	20.77%	96.22%
WD	66 Neutral	$2.90B	25.63	6.26%	3.20%	11.18%	24.94%
COOP	65 Neutral	$12.06B	20.84	11.76%	―	2.27%	-17.46%
RKT	61 Neutral	$37.40B	68.51	>-0.01%	―	21.52%	-103.65%
GHLD	58 Neutral	$1.24B	50.90	2.12%	2.49%	34.62%	-7.94%
LDI	57 Neutral	$708.18M	―	-23.67%	―	6.60%	44.77%

Walker & Dunlop Corporate Events

Walker & Dunlop Amends Financial Agreement with JPMorgan

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.

Walker & Dunlop CEO Receives Performance Stock Award

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.