📊 WD Key Takeaways
Is Walker & Dunlop, Inc. (WD) a Good Investment?
Walker & Dunlop exhibits a concerning disconnect between headline revenue growth (+286% YoY) and operational reality: net income grew only 2.5%, EPS declined 48.6%, and critically, operating cash flow is deeply negative at -$1.1B. The combination of deteriorating earnings quality, negative free cash flow, weak interest coverage (1.7x), and significant debt burden ($2.3B) creates elevated financial stress despite strong topline expansion.
Walker & Dunlop, Inc. Key Strengths (WD)
- Exceptional revenue growth of +285.8% YoY demonstrates strong market demand
- Maintains positive net income of $15.9M and operational viability
- Substantial asset base of $6.2B provides competitive scale in finance services
WD Stock Risks: Walker & Dunlop, Inc. Investment Risks
- CRITICAL: Operating cash flow is -$1.1B, indicating company burns cash despite reported profits—suggests poor cash conversion and potential working capital stress
- Severe earnings deterioration: EPS down 48.6% YoY despite massive revenue growth indicates poor quality of earnings and margin compression
- Weak interest coverage ratio of 1.7x with $2.3B debt load creates vulnerability to rate increases and economic downturns; ratio below 2.5x is high-risk
- Extremely low returns on capital: ROE 0.9% and ROA 0.3% indicate inefficient capital deployment
- Thin profitability margins (Operating: 8.6%, Net: 5.3%) limit cash generation ability
Key Metrics to Watch
- Operating cash flow trend—must turn positive to validate profitability
- Free cash flow and cash position—critical given $2.3B debt and negative operating cash burn
- Interest coverage ratio—watch for deterioration below 1.5x as refinancing risk
- Earnings quality—monitor if net income growth converges with revenue growth
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 |
|---|---|---|---|
| Q1 2026 | $58.0M | $2.8M | $0.08 |
| 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 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| May 21, 2026 | 4 | xslF345X06/tm2615341-7_4seq1.xml | View → |
| May 21, 2026 | 4 | xslF345X06/tm2615341-6_4seq1.xml | View → |
| May 21, 2026 | 4 | xslF345X06/tm2615341-5_4seq1.xml | View → |
| May 21, 2026 | 4 | xslF345X06/tm2615341-4_4seq1.xml | View → |
| May 21, 2026 | 4 | xslF345X06/tm2615341-3_4seq1.xml | View → |
❓ Frequently Asked Questions about WD
What is the AI rating for WD?
Walker & Dunlop, Inc. (WD) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WD's key strengths?
Claude: Exceptional revenue growth of +285.8% YoY demonstrates strong market demand. Maintains positive net income of $15.9M and operational viability.
What are the risks of investing in WD?
Claude: CRITICAL: Operating cash flow is -$1.1B, indicating company burns cash despite reported profits—suggests poor cash conversion and potential working capital stress. Severe earnings deterioration: EPS down 48.6% YoY despite massive revenue growth indicates poor quality of earnings and margin compression.
What is WD's revenue and growth?
Walker & Dunlop, Inc. reported revenue of $301.3M.
Does WD pay dividends?
Walker & Dunlop, Inc. pays dividends, with $23.6M 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 $0.46.
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 grade reflects both perspectives for balanced insights.
What is WD's fundamental grade?
Based on our AI fundamental analysis in June 2026, Walker & Dunlop, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WD stock overvalued or undervalued?
Valuation metrics for WD: ROE of 0.9% (sector avg: 12%), net margin of 5.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is WD's AI grade for 2026?
Our dual AI analysis gives Walker & Dunlop, Inc. a combined C grade 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 $-1.1B, with capital expenditures of $1.9M. FCF margin is -380.2%.
How does WD compare to other Finance stocks?
Vs Finance sector averages: Net margin 5.3% (avg: 25%), ROE 0.9% (avg: 12%), current ratio N/A (avg: 1.2).