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Walker & Dunlop (Walker & Dunlop) ROE % : 7.37% (As of Dec. 2023)


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What is Walker & Dunlop ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Walker & Dunlop's annualized net income for the quarter that ended in Dec. 2023 was $126 Mil. Walker & Dunlop's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,715 Mil. Therefore, Walker & Dunlop's annualized ROE % for the quarter that ended in Dec. 2023 was 7.37%.

The historical rank and industry rank for Walker & Dunlop's ROE % or its related term are showing as below:

WD' s ROE % Range Over the Past 10 Years
Min: 6.29   Med: 18.38   Max: 29.74
Current: 6.31

During the past 13 years, Walker & Dunlop's highest ROE % was 29.74%. The lowest was 6.29%. And the median was 18.38%.

WD's ROE % is ranked worse than
71.78% of 1460 companies
in the Banks industry
Industry Median: 9.905 vs WD: 6.31

Walker & Dunlop ROE % Historical Data

The historical data trend for Walker & Dunlop's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Walker & Dunlop ROE % Chart

Walker & Dunlop Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.89 22.06 19.35 13.20 6.29

Walker & Dunlop Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.90 6.32 6.53 5.04 7.37

Competitive Comparison of Walker & Dunlop's ROE %

For the Mortgage Finance subindustry, Walker & Dunlop's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Walker & Dunlop's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Walker & Dunlop's ROE % distribution charts can be found below:

* The bar in red indicates where Walker & Dunlop's ROE % falls into.



Walker & Dunlop ROE % Calculation

Walker & Dunlop's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=107.357/( (1689.426+1723.75)/ 2 )
=107.357/1706.588
=6.29 %

Walker & Dunlop's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=126.396/( (1706.179+1723.75)/ 2 )
=126.396/1714.9645
=7.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Walker & Dunlop  (NYSE:WD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=126.396/1714.9645
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(126.396 / 1097.344)*(1097.344 / 4165.099)*(4165.099 / 1714.9645)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.52 %*0.2635*2.4287
=ROA %*Equity Multiplier
=3.04 %*2.4287
=7.37 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=126.396/1714.9645
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (126.396 / 157.468) * (157.468 / 155.468) * (155.468 / 1097.344) * (1097.344 / 4165.099) * (4165.099 / 1714.9645)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8027 * 1.0129 * 14.17 % * 0.2635 * 2.4287
=7.37 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Walker & Dunlop ROE % Related Terms

Thank you for viewing the detailed overview of Walker & Dunlop's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Walker & Dunlop (Walker & Dunlop) Business Description

Traded in Other Exchanges
Address
7272 Wisconsin Avenue, Suite 1300, Bethesda, MD, USA, 20814
Walker & Dunlop Inc is a United States-based commercial real estate finance company. It is principally engaged in originating, selling and servicing a number of multifamily and other commercial real estate financing products that are sold under the programs of Freddie Mac, Fannie Mae, Ginnie Mae, and the Federal Housing Administration. The company's products consist of first mortgage loans, second trust loans, supplemental financings, construction loans, mezzanine loans, and bridge/interim loans. The company generates a majority of total revenue from gains from mortgage banking activities and servicing fees. It conducts business solely in the United States.
Executives
Smith Howard W Iii director, officer: President 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
William M Walker director, officer: Chairman & CEO 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Stephen P Theobald officer: EVP, CFO & Treasurer 999 WATERSIDE DRIVE, SUITE 200, NORFOLK VA 23510
Richard M Lucas officer: EVP & Gen Counsel & Secretary 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Paula A. Pryor officer: EVP & Chief HR Officer C/O WALKER & DUNLOP, INC., 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Dana L Schmaltz director 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Gregory Florkowski officer: EVP & Chief Financial Officer C/O WALKER & DUNLOP, INC., 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Rice E. John Jr director 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Donna Wells director BOSTON PRIVATE FINANCIAL HOLDINGS, INC., TEN POST OFFICE SQUARE, BOSTON MA 02109
Michael J. Warren director C/O WALKER & DUNLOP, INC., 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Michael D Malone director 2430 LEMON TREE LANE, CHARLOTTE NC 28211
Alan J Bowers director 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Richard C Warner officer: EVP & Chief Credit Officer 7501 WISCONSIN AVENUE, SUITE 1200, BETHESDA MD 20814
Ellen Levy director C/O INSTRUCTURE, INC., 6330 SOUTH 3000 EAST, SUITE 700, SALT LAKE CITY UT 84121
Cynthia A Hallenbeck director 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814