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Walker & Dunlop Inc. is a provider of commercial real estate financial services in the United States, with a primary focus on multifamily lending. The company originates, sells, and services a range of multifamily and other commercial real estate financing products. It has a market cap of $760-million (U.S.).
The company trades for just 9.3 times TTM EPS. It has grown earnings at a 26-per-cent pace over the long term (using an average of the 3-, 4, and 5-year EPS growth rates), which the Peter Lynch-based model likes. The Peter Lynch-based model likes its 0.36 P/E-to-growth ratio.
The Martin Zweig-based model likes that EPS growth has been driven by sales growth (28 per cent long term, using an average of the 3-, 4-, and 5-year sales growth rates).
Its 12 month relative strength of 93 impresses the Motley Fool-based strategy. The Fool strategy also likes that its profit margins are high (17.5 per cent) and have increased each of past two years.
The company also has a 14-per-cent equity/assets ratio and 3-per-cent return on assets rate, beating the 5-per-cent and 1-per-cent targets the Lynch model uses on financials.
Walker & Dunlop also gets good marks from the David Dreman-based contrarian model, which likes that its P/E and price/cash flow ratios are both in the market's cheapest 20 per cent. The Dreman model also likes its 17.8-per-cent return on equity.
John Reese is long WD.
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