Home Sectors Financial Services Current Fundamentals: Walker And Dunlop Inc (NYSE: WD)

Current Fundamentals: Walker And Dunlop Inc (NYSE: WD)

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Walker And Dunlop Inc is part of the banking industry and trades as part of the financial services sector. The company CEO is William Walker. Walker and Dunlop Inc is a provider of commercial real estate finance, with a primary focus on multifamily lending. The Company originates, sells, and service a range of multifamily and other commercial real estate finance products.

Previous Intraday Trading Performance:

The WD stock showed a previous change of -1.27% with an open at 51.77 and a close of 51.21. It reached an intraday high of 52.27 and a low of 50.83.

SeekingAlpha:  Walker & Dunlop, Inc. (WD) CEO Willy Walker on Q4 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $1.6b with 31.2m shares outstanding, of which the float is 29.3m shares. Trading volume reached 156,213 shares compared to its average volume of 177,744 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Walker And Dunlop Inc shares returned 5.98% and in the past 30 trading days it returned 27.32%. Over three months, it changed 7.88%. In one year it has changed 11.09% and within that year its 52-week high was 61.44 and its 52-week low was 37.96. WD stock is 34.91% above its 52 Week Low.

Our calculations show a 200 day moving average of 51.69 and a 50 day moving average of 45.48. Currently WD stock is trading -0.94% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

SeekingAlpha:  Walker & Dunlop +3.1% after dividend boost, Q4 beat

Earnings:

The last annual fiscal EPS for the company was reported at 6.56 that ended on 31st of December 2017, which according to the previous close, that is a PE of 7.81. Based on 1 analyst estimate, the estimated EPS for the next quarter is 1.34. The TTM EPS is 5.05, which comes to a TTM PE of 10.14. Historically, the PE high was 21.00 and the PE low was 7.40. If the stock reached its PE low, that would represent a price of 37.37, which is a decrease of -27.02%.

The following are the last four quarter reported earnings per share:
12-31-2018:  1.44
09-30-2018:  1.17
06-30-2018:  1.28
03-31-2018:  1.16

The dividend per share is currently 1.20, which is a dividend yield of 2.34%. Also, the payout ratio is 23.76%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 56.94, which means it is possibly undervalued and has a margin of safety of 10.06%

Indicators to Watch:

Based on the latest filings, there is 121.20% of institutional ownership. Short-interest is 439,128, which is 1.41% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.89. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.89

SeekingAlpha:  Walker & Dunlop, Inc. 2018 Q4 – Results – Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 26.75%, return on assets is 5.35%, profit margin is 26.79%, price-to-sales is 3.76 and price-to-book is 1.68.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 2  :Past Performance Score
 1  :Financial Strength Score
 1  :Future Growth Score
 3  :Dividend Score
 1  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.