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Walker & Dunlop (Walker & Dunlop) Gross Margin %

: 47.34% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Walker & Dunlop's Gross Profit for the three months ended in Dec. 2023 was $130 Mil. Walker & Dunlop's Revenue for the three months ended in Dec. 2023 was $274 Mil. Therefore, Walker & Dunlop's Gross Margin % for the quarter that ended in Dec. 2023 was 47.34%.

Warning Sign:

Walker & Dunlop Inc gross margin has been in long-term decline. The average rate of decline per year is -4.9%.


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

WD' s Gross Margin % Range Over the Past 10 Years
Min: 44.73   Med: 55.92   Max: 58.74
Current: 44.73


During the past 13 years, the highest Gross Margin % of Walker & Dunlop was 58.74%. The lowest was 44.73%. And the median was 55.92%.

WD's Gross Margin % is ranked better than
53.85% of 39 companies
in the Banks industry
Industry Median: 39.78 vs WD: 44.73

Walker & Dunlop had a gross margin of 47.34% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Walker & Dunlop was -4.90% per year.


Walker & Dunlop Gross Margin % Historical Data

The historical data trend for Walker & Dunlop's Gross Margin % 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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 55.88 55.95 51.44 49.03 44.73

Walker & Dunlop Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 47.02 43.92 44.86 42.66 47.34

Competitive Comparison

For the Mortgage Finance subindustry, Walker & Dunlop's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

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



Walker & Dunlop Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Walker & Dunlop's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=471.7 / 1054.44
=(Revenue - Cost of Goods Sold) / Revenue
=(1054.44 - 582.766) / 1054.44
=44.73 %

Walker & Dunlop's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=129.9 / 274.336
=(Revenue - Cost of Goods Sold) / Revenue
=(274.336 - 144.463) / 274.336
=47.34 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Walker & Dunlop  (NYSE:WD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Walker & Dunlop had a gross margin of 47.34% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Walker & Dunlop Gross Margin % Related Terms

Thank you for viewing the detailed overview of Walker & Dunlop's Gross Margin % 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