📊 WD Key Takeaways
Is Walker & Dunlop, Inc. (WD) a Good Investment?
Walker & Dunlop exhibits severely deteriorating fundamentals despite headline revenue growth of 286%. The company is destroying cash with -$664.3M operating cash flow and -$680.1M free cash flow while reporting only 2.5% net income growth, signaling poor earnings quality. With interest coverage of just 1.2x and net margin of 4.6%, the company faces acute solvency risk if market conditions deteriorate.
Why Buy Walker & Dunlop, Inc. Stock? WD Key Strengths
- Strong top-line revenue growth of 285.8% YoY demonstrates robust market demand
- Maintains adequate liquidity with $299.3M cash and equivalents
- Significant scale with $5.1B total assets in financial services sector
WD Stock Risks: Walker & Dunlop, Inc. Investment Risks
- Critical negative operating cash flow of -$664.3M despite positive net income indicates severe earnings quality degradation
- Dangerously low interest coverage ratio of 1.2x leaves minimal buffer for debt service obligations with elevated leverage at 1.32x D/E
- Massive disconnect: 286% revenue growth yet only 2.5% net income growth and -48.6% EPS decline signals unsustainable revenue composition
- Extremely weak profitability margins (4.6% net, 6.4% operating) and poor capital returns (3.2% ROE, 1.1% ROA) indicate structural business challenges
- Negative free cash flow of -$680.1M means the business is burning capital despite reported earnings
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Net income growth rate relative to revenue growth
- Interest coverage ratio improvement
- Debt-to-equity reduction and refinancing needs
- Free cash flow margin stabilization
Walker & Dunlop, Inc. (WD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
WD Profit Margin, ROE & Profitability Analysis
WD vs Finance Sector: How Walker & Dunlop, Inc. Compares
How Walker & Dunlop, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Walker & Dunlop, Inc. Stock Overvalued? WD Valuation Analysis 2026
Based on fundamental analysis, Walker & Dunlop, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Walker & Dunlop, Inc. Balance Sheet: WD Debt, Cash & Liquidity
WD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Walker & Dunlop, Inc.'s revenue has declined by 12% over the 5-year period, indicating business contraction. The most recent EPS of $3.18 reflects profitable operations.
WD Revenue Growth, EPS Growth & YoY Performance
WD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $64.4M | $2.8M | $0.85 |
| Q2 2025 | $68.4M | $2.8M | $0.67 |
| Q1 2025 | $52.4M | $2.8M | $0.08 |
| Q3 2024 | $61.6M | $11.9M | $0.64 |
| Q2 2024 | $66.3M | $11.9M | $0.67 |
| Q1 2024 | $52.4M | $11.9M | $0.35 |
| Q3 2023 | $61.6M | $21.5M | $0.64 |
| Q2 2023 | $66.3M | $26.7M | $0.82 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Walker & Dunlop, Inc. Dividends, Buybacks & Capital Allocation
WD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Walker & Dunlop, Inc. (CIK: 0001497770)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WD
What is the AI rating for WD?
Walker & Dunlop, Inc. (WD) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WD's key strengths?
Claude: Strong top-line revenue growth of 285.8% YoY demonstrates robust market demand. Maintains adequate liquidity with $299.3M cash and equivalents.
What are the risks of investing in WD?
Claude: Critical negative operating cash flow of -$664.3M despite positive net income indicates severe earnings quality degradation. Dangerously low interest coverage ratio of 1.2x leaves minimal buffer for debt service obligations with elevated leverage at 1.32x D/E.
What is WD's revenue and growth?
Walker & Dunlop, Inc. reported revenue of $1.2B.
Does WD pay dividends?
Walker & Dunlop, Inc. pays dividends, with $91.8M distributed to shareholders in the trailing twelve months.
Where can I find WD SEC filings?
Official SEC filings for Walker & Dunlop, Inc. (CIK: 0001497770) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WD's EPS?
Walker & Dunlop, Inc. has a diluted EPS of $1.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Walker & Dunlop, Inc. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WD stock overvalued or undervalued?
Valuation metrics for WD: ROE of 3.2% (sector avg: 12%), net margin of 4.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy WD stock in 2026?
Our dual AI analysis gives Walker & Dunlop, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WD's free cash flow?
Walker & Dunlop, Inc.'s operating cash flow is $-664.3M, with capital expenditures of $15.8M. FCF margin is -55.1%.
How does WD compare to other Finance stocks?
Vs Finance sector averages: Net margin 4.6% (avg: 25%), ROE 3.2% (avg: 12%), current ratio N/A (avg: 1.2).