Walker & Dunlop (WD) AI Stock Analysis

• Market Cap: $2.72B
• Dividend Yield: 3.33%
• Average Volume (3M): 164.59K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.94
• Revenue Growth: 12.08%
• EPS Growth: 20.13%
• Country: US
• Employees: 1,394
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.98
• Shares Outstanding: 34,069,120
• 10 Day Avg. Volume: 178,355
• 30 Day Avg. Volume: 164,586
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $93.50
• Price Target Upside: 34.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.6
• Revenue Forecast (FY): $1.21B

• Rating: 52 Neutral
• Price Target: $72.00 ▲(3.79% Upside)

Walker & Dunlop's overall stock score reflects a mixed financial performance with liquidity challenges and bearish technical indicators. Despite strong growth highlighted in the earnings call, the high P/E ratio and oversold technical conditions weigh on the stock's attractiveness.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for Walker & Dunlop's services, suggesting a solid market position and potential for sustained financial performance.

Transaction Volume Increase

The significant increase in transaction volume reflects effective business strategies and market expansion, enhancing long-term growth prospects.

Technology-Enabled Business Growth

Growth in technology-enabled segments indicates successful innovation and adaptation to market needs, supporting future competitiveness and revenue streams.

Negative Factors

Decrease in Mortgage Servicing Rights

A decrease in mortgage servicing rights could impact long-term revenue stability, as it reduces the company's ability to generate consistent servicing income.

Loan Repurchase Requests

Loan repurchase requests due to fraud may lead to financial liabilities and reputational damage, affecting future business operations and trust with partners.

Cash Flow Challenges

Negative cash flows suggest liquidity constraints, which could hinder operational flexibility and investment capacity, impacting long-term growth and stability.

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 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 shows mixed financial performance. The income statement indicates moderate recovery with improved gross profit margins, but the balance sheet and cash flow statements reveal 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	1.21B	1.13B	1.05B	1.26B	1.26B	1.08B
Gross Profit	602.35M	503.56M	471.67M	617.15M	647.71M	606.34M
EBITDA	409.44M	369.23M	363.50M	500.00M	569.23M	499.28M
Net Income	114.20M	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	1.93B	1.47B	1.32B	2.68B	2.81B
Total Liabilities	4.02B	2.62B	2.31B	2.33B	3.47B	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: 69.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 69.37 is below the 20-day moving average (MA) of 81.13, below the 50-day MA of 82.92, and below the 200-day MA of 79.06, indicating a bearish trend. The MACD of -2.25 indicates Positive momentum. The RSI at 22.86 is Positive, neither overbought nor oversold. The STOCH value of 7.76 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
PFSI	71 Outperform	$6.59B	13.66	12.55%	0.99%	25.42%	190.85%
GHLD	70 Outperform	$1.24B	50.97	10.52%	―	28.67%	―
VEL	68 Neutral	$720.34M	7.88	16.05%	―	41.99%	27.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WD	52 Neutral	$2.72B	24.67	6.46%	3.33%	12.08%	20.13%
LDI	49 Neutral	$876.95M	-7.46	-19.71%	―	13.91%	27.78%
RKT	49 Neutral	$43.93B	203.53	-2.15%	―	22.56%	―

Walker & Dunlop Corporate Events

Walker & Dunlop Reports Strong Q3 2025 Growth

Walker & Dunlop is a prominent commercial real estate finance and advisory services firm, known for its innovative approach and strong market presence in the United States and internationally. In the third quarter of 2025, Walker & Dunlop reported a significant increase in total transaction volume, reaching $15.5 billion, which marked a 34% rise from the previous year. The company’s total revenues grew by 16% to $337.7 million, while net income increased by 16% to $33.5 million, reflecting a robust financial performance. Key highlights include a 4% increase in adjusted EBITDA and a 3% rise in adjusted core EPS. The company’s servicing portfolio also expanded to $139.3 billion, up 4% year-over-year. Walker & Dunlop’s strong performance was driven by a 61% increase in Agency debt financing volume and a 40% rise in property sales volume. Despite a slight decrease in adjusted EBITDA year-to-date, the company maintained a positive outlook, with plans to leverage its exceptional team, technology, and data to capitalize on future growth opportunities in the commercial real estate market.

Walker & Dunlop’s Earnings Call Highlights Robust Growth

Walker & Dunlop’s recent earnings call painted a picture of robust growth, tempered by some challenges. The company reported significant increases in transaction volumes, revenues, and technology-driven business segments. However, it also faces hurdles with decreased mortgage servicing rights and loan repurchase requests due to borrower fraud.

Walker & Dunlop Extends Agreement with JPMorgan Chase

On September 11, 2025, Walker & Dunlop, Inc. and its subsidiary entered into an amendment with JPMorgan Chase Bank to extend the termination date of their Master Repurchase Agreement to September 10, 2026. This amendment includes a temporary increase in the facility amount to $1.5 billion until November 20, 2025, and revises fee structures, potentially impacting the company’s financial operations and its relationships with financial service providers.

The most recent analyst rating on (WD) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Walker & Dunlop stock, see the WD Stock Forecast page.

Walker & Dunlop Appoints Ernest Freedman to Board

On September 11, 2025, Walker & Dunlop, Inc. announced the election of Ernest M. Freedman to its Board of Directors, expanding the board from seven to eight members. Mr. Freedman, who brings extensive experience from his previous roles as CFO at Invitation Homes Inc. and Aimco, will also serve on the Audit and Risk Committee. His appointment is expected to enhance the board’s expertise in rental housing and capital markets, aligning with the company’s strategic growth and market leadership in the commercial real estate sector.

The most recent analyst rating on (WD) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Walker & Dunlop stock, see the WD Stock Forecast page.

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.

The most recent analyst rating on (WD) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Walker & Dunlop stock, see the WD Stock Forecast page.

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.

The most recent analyst rating on (WD) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Walker & Dunlop stock, see the WD Stock Forecast page.

Walker & Dunlop’s Earnings Call: Growth Amid Challenges

The recent earnings call for Walker & Dunlop showcased a generally positive sentiment, driven by impressive growth in transaction volumes and robust performance in the multifamily sector. The company also highlighted significant advancements in technology and affordable housing initiatives. However, challenges were noted, including declines in adjusted metrics and servicing revenues, alongside a provision for loan losses.

Walker & Dunlop Reports Strong Q2 2025 Growth

Walker & Dunlop is a prominent commercial real estate finance and advisory services firm, known for its innovative approach and technological capabilities in the industry. In its second quarter of 2025, Walker & Dunlop reported significant growth in transaction volume and revenue, with a 65% increase in total transaction volume to $14 billion and an 18% rise in total revenues to $319.2 million compared to the same period last year. The company also saw a 50% increase in net income to $34 million, driven by a strong rebound in the commercial real estate market.