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Walker & Dunlop (WD)
NYSE:WD
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Walker & Dunlop
(NYSE:WD)
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Rating:67Neutral
Price Target:
$69.00
▲(7.44% 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 (WD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.17B
Dividend Yield4.42%
Average Volume (3M)225.91K
Price to Earnings (P/E)18.9
Beta (1Y)0.93
Revenue Growth12.08%
EPS Growth20.13%
CountryUS
Employees1,394
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)N/A
Shares Outstanding34,064,230
10 Day Avg. Volume183,155
30 Day Avg. Volume225,910
Financial Highlights & Ratios
PEG Ratio-95.24
Price to Book (P/B)1.84
Price to Sales (P/S)2.84
P/FCF Ratio27.66
Enterprise Value/Market Cap2.28
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit7.44
Enterprise Value/Ebitda12.50
Forecast
1Y Price Target
$77.50Price Target Upside20.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Walker & Dunlop Business Overview & Revenue Model
Company DescriptionWalker & 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 MoneyWalker & 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 Key Performance Indicators (KPIs)
Walker & Dunlop Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong growth in transaction volumes, revenues, and technology-enabled business segments. However, the company faces challenges with decreased mortgage servicing rights due to shorter loan durations and loan repurchase requests tied to borrower fraud.Q3-2025 Updates
Positive Updates
Significant Transaction Volume Increase
Walker & Dunlop reported a total transaction volume of $15.5 billion for the third quarter, a 34% increase year-over-year.
Strong Revenue and Earnings Growth
Third quarter revenues reached $338 million, up 16% year-over-year, with diluted earnings per share increasing by 15% to $0.98.
GSE Lending Volume Growth
Freddie Mac lending increased by 137% to $3.7 billion, and Fannie Mae volumes grew by 7% to $2.1 billion.
Investment Sales Volume Surge
Q3 investment sales volume increased by 30% to $4.7 billion, outperforming the overall market growth of 17%.
Technology-Enabled Business Growth
Appraisals revenue increased by 21%, and small balance lending revenues grew by 69%.
High Credit Quality in Portfolio
The at-risk servicing portfolio showed strong performance with only 10 defaulted loans, totaling just 21 basis points.
Negative Updates
Decrease in Mortgage Servicing Rights
The shift towards shorter duration 5-year loans has led to a significant decrease in the capitalized mortgage servicing rights.
Loan Repurchase Requests Due to Borrower Fraud
Negotiations with Freddie Mac on the indemnification of two loan portfolios totaling $100 million are underway due to borrower fraud.
Fannie Mae Volume Performance
Fannie Mae volumes were relatively light compared to Freddie Mac, with only a 7% increase.
Company Guidance
During the Q3 2025 earnings call for Walker & Dunlop, Inc., several metrics highlighted the company's strong performance and future outlook. Total transaction volume for the quarter increased by 34% year-over-year to $15.5 billion, driven by a 137% rise in Freddie Mac lending to $3.7 billion and a 7% increase in Fannie Mae volumes to $2.1 billion. The company reported third-quarter revenues of $338 million, with a year-over-year growth of 16%, and diluted earnings per share of $0.98, up 15%. Adjusted EBITDA rose by 4% to $82 million, and adjusted core EPS increased 3% to $1.22. Despite a significant decrease in mortgage servicing rights due to a shift to shorter 5-year loans, the company anticipates opportunities for refinancing and asset sales over the next few years, particularly with upcoming refinancings on 10-year loans maturing in the coming years. Additionally, the brokered debt financing team placed $4.5 billion in Q3, up 12% from the previous year, while investment sales volume grew 30% to $4.7 billion, outperforming the overall market growth of 17%. The company's strategy includes leveraging technology and expanding its client base, with 16% of transaction volume year-to-date from new clients and 68% from new loans. Looking forward, Walker & Dunlop expects a gradual increase in commercial real estate capital markets activity, supported by strong forward pipelines and market dynamics similar to those observed in the early 2010s post-financial crisis period.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.72
Positive
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.65
Positive
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.58
Neutral
| 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
Neutral
64.22
Price Trends
62.67
Positive
71.68
Negative
72.45
Negative
Market Momentum
0.35
Negative
52.62
Neutral
38.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WD, the sentiment is Neutral. The current price of 64.22 is above the 20-day moving average (MA) of 63.01, above the 50-day MA of 62.67, and below the 200-day MA of 72.45, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WD.
Walker & Dunlop Risk Analysis
Walker & Dunlop disclosed 29 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $783.84M | 8.44 | 16.04% | ― | 36.73% | 27.50% | |
69 Neutral | $7.77B | 16.10 | 12.55% | 0.90% | 25.42% | 190.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.17B | 18.88 | 6.46% | 4.42% | 12.08% | 20.13% | |
54 Neutral | $59.22B | 261.46 | -2.15% | ― | 22.56% | ― | |
47 Neutral | $813.10M | -6.43 | -25.72% | ― | 3.91% | 27.78% |
* Financial Sector Average
WD
Walker & Dunlop
64.22
-28.96
-31.08%
PFSI
PennyMac Financial
146.98
33.18
29.16%
LDI
loanDepot
2.37
0.62
35.43%
VEL
Velocity Financial
20.22
1.45
7.73%
RKT
Rocket Companies
20.76
8.61
70.86%
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.