Walker & Dunlop (WD) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: 4.42%
• Average Volume (3M): 295.80K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.93
• 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: 34,064,230
• 10 Day Avg. Volume: 376,552
• 30 Day Avg. Volume: 295,798
• 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: 2.66
• Enterprise Value/Revenue: 4.44
• Enterprise Value/Gross Profit: 8.29
• Enterprise Value/Ebitda: 13.92
• 1Y Price Target: $84.00
• Price Target Upside: 38.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.35
• Revenue Forecast (FY): $1.24B

• Rating: 67 Neutral
• Price Target: $69.00 ▲(13.67% Upside)

Walker & Dunlop's overall stock score reflects moderate financial performance with high leverage and liquidity concerns. The earnings call provided a positive outlook with strong growth in key areas, while technical indicators suggest bearish momentum. The valuation is reasonable, and recent board changes are seen as positive.

Positive Factors

Revenue Growth

Sustained revenue growth reflects strong market demand and effective business strategies, supporting long-term financial health.

GSE Lending Volume Growth

Significant growth in GSE lending strengthens Walker & Dunlop's competitive position in the real estate finance market.

Technology-Enabled Business Growth

Growth in technology-enabled segments indicates successful innovation and adaptation, enhancing service offerings and market reach.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Negative Cash Flows

Negative cash flows may constrain liquidity and operational capabilities, posing challenges for sustaining long-term growth.

Decrease in Mortgage Servicing Rights

Reduced mortgage servicing rights can impact recurring revenue streams and long-term profitability, affecting financial 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 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

Walker & Dunlop shows moderate financial health with stable revenue growth and profit margins. However, high leverage and negative cash flows present risks. The company needs to address operational efficiency and liquidity to improve its financial standing.

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: 60.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 60.7 is below the 20-day moving average (MA) of 62.92, below the 50-day MA of 69.57, and below the 200-day MA of 74.57, indicating a bearish trend. The MACD of -2.04 indicates Negative momentum. The RSI at 34.96 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 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
GHLD	70 Outperform	$1.24B	50.97	10.53%	―	23.81%	―
PFSI	69 Neutral	$6.92B	14.34	12.55%	0.90%	25.42%	190.85%
VEL	68 Neutral	$757.77M	8.13	16.04%	―	36.73%	27.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WD	67 Neutral	$2.07B	18.01	6.46%	4.42%	12.08%	20.13%
RKT	54 Neutral	$53.73B	240.30	-2.15%	―	22.56%	―
LDI	47 Neutral	$729.79M	―	-25.72%	―	3.91%	27.78%

Walker & Dunlop Corporate Events

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.

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.