Walker & Dunlop, Inc. (WD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Walker & Dunlop's price-to-book of 0.82 is below the Finance services median of 0.83.

Trading below fair value

The share price of $39.44 is below our fair value estimate of $87.72.

Margin of safety over 20%

The price is 55.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -36.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -128% over the last twelve months, against a 5-year average of -25.6% a year.

Growing slower than the industry

Revenue grew 0.9% over the last twelve months; the Finance services median is 9.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -1.9% over the last twelve months and averaged 9.7% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Walker & Dunlop's return on equity of -1.9% is above the Finance services median of -33.5%.

Earnings shrank over 5 years

Net income shrank 25.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -2.6% over the last twelve months, against a 5-year average of 12.5%.

Net margin above the industry

Walker & Dunlop's net margin of -2.6% is above the Finance services median of -64.5%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.99; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Walker & Dunlop paid dividends worth 6.9% of the share price over the last twelve months.

Yield above Treasuries

The 6.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Walker & Dunlop yields 6.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 8 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 6.1% of free cash flow.