Doing it our way now: the approach this company pioneered is becoming the market's way
The model's full reasoning — Q2 2022 call → NOWe need to determine if management describes that their way of doing things is being adopted, copied, or moved toward by others in the market, and that they treat it as validation. Scan the transcript for relevant statements. Willy Walker discusses their business model, technology, and growth. He compares W&D to CoStar, CBRE, JLL. He says "W&D and CoStar have grown revenues and EBITDA at essentially the same compound annual growth rate. Yet CoStar trades at around 30x EBITDA to Walker & Dunlop’s under 10x. There is plenty of multiple expansion available to W&D if we continue to execute on our goals." That's about valuation, not about others adopting their approach. He also says "the unique combination of our people, brand and technology that has driven our growth. And while financial services is at the core of all we do, it is our investments in innovative technology similar to CoStar and Rocket that allow us to successfully compete against these much larger firms." That's about them using technology like others, not others copying them. He mentions "the dramatic diversification of product offerings at W&D" and "technology provided us with a competitive advantage" but no mention of others adopting their methods. Greg Florkowski talks about their business model transformation, but no mention of others copying. The question asks: does management describe that others are now following the company's lead? I see no such statement. They talk about their own growth, their own investments, but not about competitors imitating them. They mention that they compete with CBRE and JLL, but not that those companies are adopting W&D's approach. There is a mention of "the market is validating, by imitation" - but nothing like that appears. The only possible hint is when Willy says "we have the benefit of being one of the largest countercyclical multifamily lenders" but that's not about others copying. Thus, answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| AES | The AES Corporation | Q1 2024 | 2024-05-03 | C+ |
| GGR | Gogoro Inc. | Q1 2023 | 2023-05-11 | D |
| TGT | Target Corporation | Q4 2022 | 2023-02-28 | C |
| ORAN | Orange SA | Q2 2018 | 2018-07-26 | B |
| USFD | US Foods Holding Corp. | Q1 2018 | 2018-05-12 | C |
| SHOO | Steven Madden, Ltd. | Q1 2017 | 2017-04-21 | C |
AES · Q1 2024 → YESThe question is: Does management describe that the WAY THIS COMPANY DOES THINGS is NOW BEING ADOPTED, COPIED, OR MOVED TOWARD BY OTHERS IN ITS MARKET, so that the company's own way of doing things is ...
GGR · Q1 2023 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?
TGT · Q4 2022 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?