Walker & Dunlop (WD)
NYSE:WD
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Walker & Dunlop
(NYSE:WD)
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Rating:48Neutral
Price Target:
$44.00
▼(-8.05% Downside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by volatile and recently weakening financial performance—especially the sharp deterioration in 2025 operating/free cash flow and the drop in net profitability—alongside a clearly bearish technical setup. These negatives are partly offset by a positive earnings-call outlook with stronger pipeline/volume expectations and a high dividend yield, but the high P/E and execution/one-time charge risks limit upside confidence.
Positive Factors
Leading GSE market position
Consistent top-tier placement with Fannie Mae and growing Freddie Mac volumes gives Walker & Dunlop durable origination access and preferred counterparty status. This entrenched GSE position supports steady deal flow, recurring MSR opportunities and a structural competitive barrier to new entrants.
Negative Factors
Highly variable operating and free cash flow
The pronounced swing to materially negative operating and free cash flow in 2025 highlights inconsistency in cash generation. Persistent volatility can constrain reinvestment, capital returns and funding for growth, forcing greater reliance on external financing during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Leading GSE market position
Consistent top-tier placement with Fannie Mae and growing Freddie Mac volumes gives Walker & Dunlop durable origination access and preferred counterparty status. This entrenched GSE position supports steady deal flow, recurring MSR opportunities and a structural competitive barrier to new entrants.
Read all positive factors
Walker & Dunlop (WD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.59B
Dividend Yield4.42%
Average Volume (3M)400.96K
Price to Earnings (P/E)35.1
Beta (1Y)0.98
Revenue Growth12.08%
EPS Growth20.13%
CountryUS
Employees1,394
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-0.41
Shares Outstanding34,060,400
10 Day Avg. Volume250,682
30 Day Avg. Volume400,958
Financial Highlights & Ratios
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 Cap2.25
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit4.96
Enterprise Value/Ebitda10.23
Forecast
1Y Price Target
$65.00Price Target Upside35.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.86
Revenue Forecast (FY)$1.36B
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 off...
How the Company Makes Money
Walker & Dunlop makes money primarily by earning fees tied to (1) originating and arranging commercial real estate loans and (2) servicing and managing those loans over time, supplemented by other capital markets and brokerage revenues.
Key reven...
Walker & Dunlop Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Measures income from core operations for each segment before financing and taxes, isolating operational performance from one-time items. Useful for seeing where management is generating sustainable earnings and which segments are most efficient or require cost control.
Measures income from core operations for each segment before financing and taxes, isolating operational performance from one-time items. Useful for seeing where management is generating sustainable earnings and which segments are most efficient or require cost control.
Data provided by:
The Fly
The FlyWalker & Dunlop Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call reflects a predominantly positive outlook: materially stronger transaction volumes, market share gains with GSEs, a sizable servicing portfolio and a robust Q1 2026 pipeline underpin optimistic 2026 guidance and a long-term 'Journey to '30' plan. Near-term headwinds include $66M of Q4 charges tied to loan repurchases and affordable-asset impairments, an isolated origination control failure that led to indemnities and elevated carry costs for repurchased assets. Management framed the charges as one-time, actionable steps to clean up the balance sheet and redeploy capital into higher-return core businesses, and core operating trends (volumes, market share, servicing growth and cash) remain strong.Positive Updates
Transaction Volume Acceleration
Capital Markets transaction volumes grew from $7.0B in Q1 to $18.0B in Q4 (161% growth over the year within 2025); total Q4 transaction volumes were $18.0B, up 36% year-over-year.
Negative Updates
Q4 Impairments and Credit Losses
Recognized $66M of impairments and credit losses in Q4 related to loan repurchases and exiting affordable assets; $38M of indemnified & repurchased loan expenses (including $29M related to the Freddie Mac investigation) and $26M of affordable asset impairments.
Read all updates
Q4-2025 Updates
Positive
Negative
Transaction Volume Acceleration
Capital Markets transaction volumes grew from $7.0B in Q1 to $18.0B in Q4 (161% growth over the year within 2025); total Q4 transaction volumes were $18.0B, up 36% year-over-year.
Read all positive updates
Company Guidance
Walker & Dunlop guided full‑year 2026 diluted EPS of $3.50–$4.00, adjusted EBITDA of $300–$325 million and adjusted core EPS of $4.50–$5.00, backing that outlook with a Q1 2026 pipeline of $15 billion (over 2x Q1 2025), a $144 billion servicing portfolio (up 6% year‑over‑year), $299 million of cash, and an expectation that the market will grow similar to 2025 as the GSEs’ combined multifamily cap was increased by over 20% to $176 billion; management also expects MSR margins to remain near 2025 levels, is targeting average transaction volume per banker/broker to rise from $248 million to $300 million by year‑end (with 2025 averages of $29 million per financing and $46 million per sale), plans to eliminate roughly $4–$5 million of quarterly operating costs and recover $25–$35 million of capital as repurchased/affordable assets are sold, and reiterated longer‑term ambitions to reach $9 EPS by 2030 under the Journey to ’30.Walker & Dunlop Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| 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
Negative
47.85
Price Trends
51.49
Negative
56.62
Negative
67.06
Negative
Market Momentum
-1.17
Negative
53.92
Neutral
87.73
Negative
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 47.85 is above the 20-day moving average (MA) of 44.91, below the 50-day MA of 51.49, and below the 200-day MA of 67.06, indicating a neutral trend. The MACD of -1.17 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 87.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WD.
Walker & Dunlop Risk Analysis
Walker & Dunlop disclosed 30 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $750.96M | 5.50 | 16.95% | ― | 36.73% | 27.50% | |
54 Neutral | $4.77B | 16.04 | 12.18% | 0.90% | 25.42% | 190.85% | |
52 Neutral | $41.87B | -376.48 | -0.68% | ― | 22.56% | ― | |
48 Neutral | $1.59B | 35.14 | 3.26% | 4.42% | 12.08% | 20.13% | |
46 Neutral | $313.49M | -6.97 | -24.39% | ― | 3.91% | 27.78% |
* Financial Sector Average
WD
Walker & Dunlop
47.85
-23.11
-32.57%
PFSI
PennyMac Financial
93.03
-2.31
-2.42%
LDI
loanDepot
1.43
0.31
27.68%
VEL
Velocity Financial
19.47
1.91
10.88%
RKT
Rocket Companies
15.32
2.82
22.56%
Walker & Dunlop Corporate Events
Business Operations and StrategyFinancial Disclosures
Walker & Dunlop Hosts Virtual Investor Day on Strategy
Positive
Mar 10, 2026
Walker Dunlop plans to host a virtual Investor Day on March 10, 2026, featuring senior management presentations and a QA session to outline its long-term growth strategy. The event will highlight the firm’s five-year outlook, branded the Jo...
Business Operations and StrategyPrivate Placements and Financing
Walker & Dunlop Expands Warehousing Credit Facility with PNC
Positive
Mar 4, 2026
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 amendmen...
Business Operations and StrategyPrivate Placements and Financing
Walker & Dunlop Amends Warehousing Credit Agreement with PNC
Positive
Feb 2, 2026
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, prima...
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.