Walker & Dunlop, Inc. (WD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Air Lease Corp.

PennyMac Financial Services, Inc.

Walker & Dunlop, Inc.

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McGrath RentCorp

Herc Holdings, Inc.

Hertz Global Holdings, Inc.

Why is Walker & Dunlop, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 11.34%

Poor long term growth as Operating profit has grown by an annual rate of -7.80%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD -190.75 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 3.68 times

With ROE of 4.80%, it has a very attractive valuation with a 1.34 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -40.85%, its profits have fallen by -7.4%
At the current price, the company has a high dividend yield of 379.1

Below par performance in long term as well as near term

Along with generating -40.85% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Walker & Dunlop, Inc. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Walker & Dunlop, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Walker & Dunlop, Inc.

-26.54%

-0.86

36.34%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.42%

EBIT Growth (5y)

-10.91%

EBIT to Interest (avg)

17.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

24.54%

Dividend Payout Ratio

162.92%

Pledged Shares

Institutional Holding

97.63%

ROCE (avg)

24.00%

ROE (avg)

11.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.85

EV to EBIT

4.35

EV to EBITDA

2.04

EV to Capital Employed

0.77

EV to Sales

0.75

PEG Ratio

Dividend Yield

611.72%

ROCE (Latest)

17.78%

ROE (Latest)

4.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

PRE-TAX PROFIT(Q)

At USD 25.95 MM has Grown at 394.85%

NET PROFIT(Q)

At USD 15.24 MM has Grown at 473.3%

DIVIDEND PER SHARE(HY)

Highest at USD 3.18

RAW MATERIAL COST(Y)

Fallen by 1.15% (YoY

CASH AND EQV(HY)

Highest at USD 1,002.63 MM

-17What is not working for the Company

INTEREST(HY)

At USD 76.73 MM has Grown at 144.09%

OPERATING CASH FLOW(Y)

Lowest at USD -1,527.11 MM

NET PROFIT(HY)

At USD 23.81 MM has Grown at -29.76%

ROCE(HY)

Lowest at 3.91%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.18 times

DEBT-EQUITY RATIO (HY)

Highest at 183.79 %

Here's what is working for Walker & Dunlop, Inc.

Pre-Tax Profit

At USD 25.95 MM has Grown at 394.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 15.24 MM has Grown at 473.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 3.18 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 1,002.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 62.96 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Walker & Dunlop, Inc.

Interest

At USD 76.73 MM has Grown at 144.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD -1,527.11 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Lowest at 3.18 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Debt-Equity Ratio

Highest at 183.79 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio