Walker & Dunlop, Inc — Earnings Quality Grade F
WD · Financial Services
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 16 days (108 → 124)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR outpaced revenue for 2 consecutive years
Revenue 9.0%, CFFO -613.5%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 21.7% is >2x revenue growth 9.0%
SG&A/Gross Profit = 20.5%, excellent (<30%)
Gross margin 42.3%, change -2.2pp. Stable
Cash Flow Quality
CFFO/NI = -11.81. Only -1181% of profit backed by cash
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF < 50% of Net Income for 2 years
Accruals ratio = 14.2%. Exceeds 10%
Cash $0.3B covers only 12% of debt $2.5B
Balance Sheet Health
Goodwill+Intangibles $1.8B = 105% of equity. Over 50%
Debt/EBITDA = 7.1x (>4x). Financial stress
Other assets -25.4% vs revenue 9.0%. Normal
Write-offs surged 3011% YoY, = 65% of NI. Possible big bath
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -1.71 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score — Not Applicable
Walker & Dunlop, Inc is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25