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Walker & Dunlop
(NYSE:WD)
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Rating:46Neutral
Price Target:
$32.00
▼(-21.36% Downside)
Action:Reiterated
Date:09/16/26
The score is primarily constrained by weakened financial quality—especially recent negative operating/free cash flow, lower profitability versus prior years, and higher leverage with reduced ROE. Technicals also remain soft with the stock below key moving averages and negative MACD. Offsetting factors include a high dividend yield and a positive liquidity-related corporate event (extended JPMorgan facility), but these are not enough to outweigh cash-flow and trend concerns.
Positive Factors
Recurring servicing and diversified fee model
Recurring servicing income can provide revenue visibility beyond individual loan closings, while origination and advisory fees diversify the model. Exposure to GSE, government, and other capital channels gives WD multiple ways to serve commercial real estate clients over time.
Negative Factors
Persistent negative cash generation
Repeated negative operating and free cash flow weakens financial flexibility and reduces the cash available to support lending growth, absorb volatility, or fund obligations internally. The large 2025 outflow makes cash conversion a durable concern rather than an isolated period.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring servicing and diversified fee model
Recurring servicing income can provide revenue visibility beyond individual loan closings, while origination and advisory fees diversify the model. Exposure to GSE, government, and other capital channels gives WD multiple ways to serve commercial real estate clients over time.
Read all positive factors
Walker & Dunlop Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Measures income from core operations for each segment before financing and taxes, isolating operational performance from one-time items. Useful for seeing where management is generating sustainable earnings and which segments are most efficient or require cost control.
Measures income from core operations for each segment before financing and taxes, isolating operational performance from one-time items. Useful for seeing where management is generating sustainable earnings and which segments are most efficient or require cost control.
Data provided by:
The Fly
The FlyWalker & Dunlop (WD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.13B
Dividend Yield8.21%
Average Volume (3M)514.91K
Price to Earnings (P/E)28.2
Beta (1Y)0.95
Revenue Growth9.22%
EPS Growth-65.41%
CountryUS
Employees1,466
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)1.17
Shares Outstanding34,325,745
10 Day Avg. Volume618,850
30 Day Avg. Volume514,908
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)1.16
Price to Sales (P/S)1.63
P/FCF Ratio-2.95
Enterprise Value/Market Cap3.35
Enterprise Value/Revenue3.00
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda11.08
Forecast
1Y Price Target
$56.00Price Target Upside37.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.48
Revenue Forecast (FY)$1.30B
Walker & Dunlop Business Overview & Revenue Model
Company Description
Walker & Dunlop, Inc., operating through its subsidiaries, offers a comprehensive range of financial products and services tailored for real estate owners and developers throughout the United States. The company specializes in financing for multif...
How the Company Makes Money
Walker & Dunlop primarily makes money by earning fees tied to commercial real estate financing and transaction advisory, plus recurring income from servicing loans it helps originate.
Key revenue streams include:
1) Loan origination and related f...
Walker & Dunlop Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call communicated a clear operational and financial rebound: materially higher transaction volumes (+94% YoY), strong revenue and EPS growth (+27% and +475% YoY, respectively), improved segment profitability (notably Capital Markets turnaround) and a growing servicing portfolio that provides durable cash flow. The primary negatives are a still-elevated but shrinking loan repurchase exposure (~$192M), associated near-term expenses (~$10M in Q1) and ongoing GSE reviews with uncertain timing, plus investment sales remain modestly up (+4%). On balance, the positive performance metrics, scale gains, improved profitability, and confident guidance/pipeline outweigh the manageable repurchase and market-duration headwinds.Positive Updates
Record Transaction Volume Recovery
Total transaction volume of $13.7 billion in Q1 2026, up 94% year-over-year, driven by broad-based activity across the platform.
Negative Updates
Loan Repurchase Exposure and Related Costs
Total GSE loan repurchase exposure reduced from $222 million to $192 million but remains material; recorded approximately $10 million of repurchase-related expenses in Q1 (split between credit reserves and operating costs).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Transaction Volume Recovery
Total transaction volume of $13.7 billion in Q1 2026, up 94% year-over-year, driven by broad-based activity across the platform.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance predicated on a gradual stabilization in interest rates and a pickup in capital markets activity, saying they remain confident in achieving it given a healthy Q2 pipeline and a strong Q1 start (Q1 total transaction volume $13.7B; debt originations $11.8B; total revenues $301M; adjusted EBITDA $74M; diluted EPS $0.46). Key quantified targets and assumptions: reduce GSE loan repurchase exposure from $192M (down from $222M) to $100–125M by year‑end with two assets expected under contract in Q2, drive average transaction volume per banker/broker from a trailing‑12‑month $282M (up from $248M) to $300M by end‑2026, and execute the Journey to ’30 plan to grow to $2B of revenues by 2030. They also expect continued servicing portfolio growth (servicing portfolio $146B; servicing fees $85M) to produce steady cash flow, will maintain a $0.68 quarterly dividend, and retain $62M of share‑repurchase capacity after deploying $13M (283k shares at $47.13) in Q1.Walker & Dunlop Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
56
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.26B | 1.23B | 1.13B | 1.05B | 1.26B | 1.26B |
| Gross Profit | 802.23M | 756.94M | 503.56M | 471.67M | 617.15M | 647.71M |
| EBITDA | 342.14M | 382.39M | 351.73M | 364.45M | 486.48M | 569.23M |
| Net Income | 40.39M | 57.08M | 108.17M | 107.36M | 213.82M | 265.76M |
Balance Sheet | ||||||
| Total Assets | 4.89B | 5.06B | 4.38B | 4.05B | 4.05B | 5.21B |
| Cash, Cash Equivalents and Short-Term Investments | 160.86M | 299.31M | 279.27M | 328.70M | 225.95M | 305.63M |
| Total Debt | 2.21B | 2.25B | 1.66B | 1.47B | 1.32B | 2.71B |
| Total Liabilities | 3.17B | 3.31B | 2.62B | 2.31B | 2.33B | 3.63B |
| Stockholders Equity | 1.71B | 1.74B | 1.75B | 1.72B | 1.69B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | -1.28B | -680.08M | 116.40M | -16.72M | 1.56B | 861.25M |
| Operating Cash Flow | -1.26B | -664.31M | 129.36M | -518.00K | 1.58B | 870.46M |
| Investing Cash Flow | -100.47M | -77.34M | -38.13M | 126.87M | -133.78M | -377.55M |
| Financing Cash Flow | 1.16B | 758.13M | -154.73M | 6.77M | -1.58B | -457.73M |
Walker & Dunlop Technical Analysis
Negative
40.69
Price Trends
40.06
Negative
44.99
Negative
48.72
Negative
Market Momentum
-1.98
Positive
31.49
Neutral
19.46
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 40.69 is above the 20-day moving average (MA) of 36.58, above the 50-day MA of 40.06, and below the 200-day MA of 48.72, indicating a bearish trend. The MACD of -1.98 indicates Positive momentum. The RSI at 31.49 is Neutral, neither overbought nor oversold. The STOCH value of 19.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WD.
Walker & Dunlop Risk Analysis
Walker & Dunlop disclosed 30 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $581.56M | 5.30 | 15.83% | ― | 31.59% | 17.94% | |
55 Neutral | $3.11B | 7.92 | 9.14% | 2.00% | 24.08% | 0.60% | |
54 Neutral | $222.23M | 1.58 | 23.42% | ― | 23.02% | 295.44% | |
52 Neutral | $117.96M | -27.29 | >-0.01% | 13.21% | -23.84% | -348.41% | |
46 Neutral | $1.13B | 28.21 | 2.33% | 8.21% | 9.22% | -65.41% | |
46 Neutral | $1.74B | -13.48 | -20.07% | 37.04% | 11.65% | -440.08% |
* Financial Sector Average
WD
Walker & Dunlop
33.01
-44.03
-57.15%
GHI
Greystone Housing Impact Investors
5.07
-3.82
-42.94%
ONIT
Onity Group
26.60
-9.81
-26.94%
PFSI
PennyMac Financial
59.90
-55.44
-48.07%
VEL
Velocity Financial
14.73
-3.40
-18.75%
UWMC
UWM Holding
1.08
-3.75
-77.63%
Walker & Dunlop Corporate Events
Business Operations and StrategyExecutive/Board Changes
Walker & Dunlop Announces Planned Retirement of Chief Operating Officer
Neutral
Oct 6, 2026
Walker Dunlop announced that Executive Vice President and Chief Operating Officer Stephen P. Theobald notified the company on September 30, 2026, of his plans to retire effective March 31, 2027. Theobald will remain in his current role until that...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Walker & Dunlop Extends Key JPMorgan Financing Facility
Positive
Sep 15, 2026
On September 9, 2026, Walker Dunlop, Inc. and its operating subsidiary amended their master repurchase agreement with JPMorgan Chase Bank to extend the facility’s termination date to September 9, 2027. Walker Dunlop continues to guarantee ...
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.