Walker & Dunlop (WD) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: 4.42%
• Average Volume (3M): 209.53K
• 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): -0.41
• Shares Outstanding: 34,064,230
• 10 Day Avg. Volume: 209,097
• 30 Day Avg. Volume: 209,528
• PEG Ratio: -0.73
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.63
• P/FCF Ratio: -2.95
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 15.17
• 1Y Price Target: $70.00
• Price Target Upside: 47.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.43
• Revenue Forecast (FY): $1.36B

• Rating: 51 Neutral
• Price Target: $48.00 ▲(1.14% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

Overall score reflects pressured fundamentals and cash-flow volatility (notably the sharp 2025 operating/free cash flow decline and margin compression) plus weak technical momentum (below key moving averages with negative MACD). These are partially offset by an attractive dividend yield and a generally positive earnings-call backdrop showing improving transaction volumes and revenue growth, though MSR headwinds and repurchase/fraud-related risk remain.

Positive Factors

GSE Relationships

Deep, established ties with Fannie Mae and Freddie Mac provide durable access to liquidity, preferred execution and product distribution in multifamily finance. Those relationships support recurring fee pipelines and competitive financing terms that sustain originations and margins over the medium term.

Transaction Volume Growth

Sustained, large transaction volumes reflect market share and scale in commercial mortgage banking. Higher volumes translate to recurring origination fees and cross-sell opportunities, strengthening revenue durability and client relationships even through cyclical periods.

Technology & New Clients

Investment in tech and growth in small-balance and appraisal services diversifies fee streams and improves unit economics. Technology-driven client acquisition (noted new-client share) supports scalable origination capacity and recurring service revenue beyond interest-rate cycles.

Negative Factors

Cash Flow Volatility

Highly inconsistent cash generation—swings from strong positive years to sharply negative 2025 cash flow—undermines funding flexibility for lending warehousing, dividends, and investment. Persistent volatility raises refinancing and liquidity risk across economic cycles.

Margin Compression

Material decline in net margins from prior double-digits to mid-single digits indicates structural pressure on profitability. Lower margins reduce retained earnings and ROE, limiting the firm's ability to absorb credit losses or invest in growth initiatives without raising capital.

Rising Leverage

Increased leverage and higher total debt constrain financial flexibility and amplify earnings volatility versus peers. Elevated debt levels make the firm more sensitive to funding-cost rises and liquidity stress, raising refinancing and covenant risk over the medium term.

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

Mixed fundamentals with clear recent deterioration: income statement shows choppy revenue and sharp 2025 margin/net income compression, the balance sheet shows leverage rising again in 2025 (debt-to-equity ~1.30) with ROE falling to low-single-digits, and cash flow is the key weakness with operating/free cash flow turning sharply negative in 2025 after volatility.

Income Statement

Revenue has been choppy: strong growth in 2020–2021, flat in 2022, a notable decline in 2023, a rebound in 2024, and another decline in 2025. Profitability has also compressed materially versus earlier years—net profit margin fell from ~21–23% (2020–2021) to ~10% (2023–2024) and ~4.6% in 2025, with net income dropping sharply in 2025. A positive offset is that 2025 EBITDA margin remained relatively healthy (~25%), suggesting some underlying earnings power despite weaker bottom-line results.

Balance Sheet

Leverage is moderate-to-elevated and has moved around over time. Debt relative to equity improved from very high levels in 2020–2021 to under 1.0 in 2023–2024, but then increased again in 2025 (debt-to-equity ~1.30) alongside higher total debt. Equity has been fairly stable, which provides a cushion, but returns on equity have stepped down meaningfully from strong levels in 2020–2022 to low-single-digits in 2025, reflecting weaker profitability and reducing the balance sheet’s overall efficiency.

Cash Flow

Cash generation is the key weak spot due to high volatility. Operating cash flow swung from deeply negative (2020) to very strong (2021–2022), near zero/negative again in 2023, positive in 2024, and then sharply negative in 2025, with free cash flow also materially negative in 2025. While 2024 showed healthy conversion (positive operating and free cash flow), the 2025 reversal raises risk around consistency of cash earnings and funding flexibility.

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	0.00	503.56M	471.67M	617.15M	647.71M
EBITDA	312.19M	351.73M	364.45M	486.48M	569.23M
Net Income	56.98M	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

• Technical Analysis Sentiment: Negative
• Last Price: 47.46
• 50DMA: Negative
• 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 47.46 is below the 20-day moving average (MA) of 62.75, below the 50-day MA of 62.53, and below the 200-day MA of 71.55, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 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%
PFSI	58 Neutral	$4.76B	9.81	12.55%	0.90%	25.42%	190.85%
WD	51 Neutral	$2.14B	18.64	6.46%	4.42%	12.08%	20.13%
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.