Walker & Dunlop Inc Common Stock (WD)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Walker & Dunlop is a mortgage finance intermediary for multifamily and commercial real estate. As a Graham-style investor, I start with book value: at the 2026-10-13 close of $32.08, FairStock's price-to-book is 0.63, so the market values the company below its accounting net assets. That can be an opportunity, but only if the assets and earnings are sound. They are not obviously sound. FairStock's ROE is 2.36% and ROCE is 0.86%, which are poor returns. Filed figures show FY2025 revenue of $320.0M, up from $265.4M in FY2024, yet net income fell to $56.2M from $108.2M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $82.4M versus $77.7M in fiscal Q2 2025, but net income was only $3.0M versus $34.0M. That is a profitability collapse. The computed Lynch category is SLOW GROWER — Shrinking, with profit -25.6% a year over five years. Leverage, D/E 1.36, is normal for a lender but dangerous when credit turns; CET1, net interest margin and combined ratio are not in the data, so I cannot verify underwriting quality. The dividend yield is 7.20%, but EPS of $1.12 and fiscal Q2 2026 diluted EPS of $0.09 suggest coverage is stretched. The FairStock P/E of 28.64 at the 2026-10-13 close shows the market is not paying a low multiple for depressed earnings; the P/B discount is the main value signal. With FairStock Score 26/100 and Piotroski 5/9, I see a cyclical, leveraged business at a low price, but without enough evidence of durable earning power. I would need proof that credit costs and margins are stabilizing before calling it a true bargain.

In plain English: Walker & Dunlop makes and services loans for apartment and commercial real estate owners. Revenue has grown, but profit has dropped sharply and the company is currently earning very little on its money. The stock looks cheap compared with its accounting value, but that discount may be fair if weak profits and high borrowing continue.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer