📊 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.
Why Buy Walker & Dunlop, Inc. Stock? WD Key Strengths
- 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
❓ Frequently Asked Questions about WD
What is the AI rating for WD?
Walker & Dunlop, Inc. (WD) has an AI rating of SELL 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 rating reflects both perspectives for balanced insights.
Is WD a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Walker & Dunlop, Inc. has a SELL rating with 78% 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 0.9% (sector avg: 12%), net margin of 5.3% (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 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 $-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).