WP CAREY INC (WPC) Stock Fundamental Analysis
NYSE:WPC - New York Stock Exchange, Inc. - US92936U1097 - REIT - Currency: USD
Taking everything into account, WPC scores 5 out of 10 in our fundamental rating. WPC was compared to 129 industry peers in the Diversified REITs industry. WPC scores excellent on profitability, but there are concerns on its financial health. WPC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WPC was profitable.
In the past year WPC had a positive cash flow from operations.
Each year in the past 5 years WPC has been profitable.
Each year in the past 5 years WPC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.46%, WPC is doing good in the industry, outperforming 74.60% of the companies in the same industry.
The Return On Equity of WPC (5.11%) is better than 72.22% of its industry peers.
WPC has a Return On Invested Capital of 3.68%. This is in the better half of the industry: WPC outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WPC is in line with the industry average of 3.11%.
The last Return On Invested Capital (3.68%) for WPC is above the 3 year average (3.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 5.11% | ||
| ROIC | 3.68% |
ROA(3y)3.29%
ROA(5y)3.12%
ROE(3y)6.76%
ROE(5y)6.46%
ROIC(3y)3.54%
ROIC(5y)3.43%
1.3 Margins
Looking at the Profit Margin, with a value of 27.22%, WPC belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
In the last couple of years the Profit Margin of WPC has grown nicely.
Looking at the Operating Margin, with a value of 49.20%, WPC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
WPC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 88.85%, WPC belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
In the last couple of years the Gross Margin of WPC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.2% | ||
| PM (TTM) | 27.22% | ||
| GM | 88.85% |
OM growth 3Y1.61%
OM growth 5Y2.57%
PM growth 3Y-1.87%
PM growth 5Y3.28%
GM growth 3Y-0.67%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
WPC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WPC has about the same amount of shares outstanding.
Compared to 5 years ago, WPC has more shares outstanding
WPC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that WPC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WPC (0.85) is better than 65.08% of its industry peers.
WPC has a debt to FCF ratio of 14.13. This is a negative value and a sign of low solvency as WPC would need 14.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.13, WPC belongs to the top of the industry, outperforming 81.75% of the companies in the same industry.
WPC has a Debt/Equity ratio of 0.95. This is a neutral value indicating WPC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, WPC is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 14.13 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.56
WACC6.62%
2.3 Liquidity
WPC has a Current Ratio of 0.81. This is a bad value and indicates that WPC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of WPC (0.81) is worse than 68.25% of its industry peers.
A Quick Ratio of 0.81 indicates that WPC may have some problems paying its short term obligations.
WPC has a Quick ratio of 0.81. This is in the lower half of the industry: WPC underperforms 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for WPC have decreased strongly by -47.62% in the last year.
The Earnings Per Share has been growing slightly by 1.09% on average over the past years.
WPC shows a decrease in Revenue. In the last year, the revenue decreased by -9.09%.
Measured over the past years, WPC shows a small growth in Revenue. The Revenue has been growing by 5.13% on average per year.
EPS 1Y (TTM)-47.62%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-68.18%
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%-1.52%
3.2 Future
The Earnings Per Share is expected to grow by 14.09% on average over the next years. This is quite good.
WPC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.95% yearly.
EPS Next Y21.3%
EPS Next 2Y14.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.42%
Revenue Next 2Y5.25%
Revenue Next 3Y8.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.49, which means the current valuation is very expensive for WPC.
WPC's Price/Earnings ratio is a bit cheaper when compared to the industry. WPC is cheaper than 65.08% of the companies in the same industry.
WPC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.31, the valuation of WPC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WPC is valued cheaply inside the industry as 84.13% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WPC to the average of the S&P500 Index (22.68), we can say WPC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.49 | ||
| Fwd PE | 24.31 |
4.2 Price Multiples
63.49% of the companies in the same industry are cheaper than WPC, based on the Enterprise Value to EBITDA ratio.
72.22% of the companies in the same industry are more expensive than WPC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.71 | ||
| EV/EBITDA | 16.17 |
4.3 Compensation for Growth
WPC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WPC may justify a higher PE ratio.
WPC's earnings are expected to grow with 14.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)27.13
EPS Next 2Y14.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.75%, which is a nice return.
WPC's Dividend Yield is a higher than the industry average which is at 18.48.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
5.2 History
The dividend of WPC decreases each year by -3.50%.
WPC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WPC pays out 177.56% of its income as dividend. This is not a sustainable payout ratio.
DP177.56%
EPS Next 2Y14.09%
EPS Next 3YN/A
61.64
+0.44 (+0.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners70.17%
Inst Owner Change2.54%
Ins Owners1%
Ins Owner Change3.32%
Market Cap13.49B
Analysts53.33
Price Target59.98 (-2.69%)
Short Float %1.53%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
Yearly Dividend3.5
Dividend Growth(5Y)-3.5%
DP177.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.02%
Min EPS beat(2)-63.31%
Max EPS beat(2)-4.73%
EPS beat(4)2
Avg EPS beat(4)-5.64%
Min EPS beat(4)-63.31%
Max EPS beat(4)34.5%
EPS beat(8)4
Avg EPS beat(8)-0.6%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.84%
Min Revenue beat(2)1.42%
Max Revenue beat(2)2.26%
Revenue beat(4)3
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)0.98%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.72%
PT rev (3m)-4.58%
EPS NQ rev (1m)6.25%
EPS NQ rev (3m)4.3%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)2.12%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.49 | ||
| Fwd PE | 24.31 | ||
| P/S | 8.52 | ||
| P/FCF | 23.71 | ||
| P/OCF | 7.36 | ||
| P/B | 1.6 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 16.17 |
EPS(TTM)2.09
EY3.39%
EPS(NY)2.54
Fwd EY4.11%
FCF(TTM)2.6
FCFY4.22%
OCF(TTM)8.38
OCFY13.59%
SpS7.23
BVpS38.52
TBVpS27.04
PEG (NY)1.38
PEG (5Y)27.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 5.11% | ||
| ROCE | 4.65% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.91% | ||
| OM | 49.2% | ||
| PM (TTM) | 27.22% | ||
| GM | 88.85% | ||
| FCFM | 35.94% |
ROA(3y)3.29%
ROA(5y)3.12%
ROE(3y)6.76%
ROE(5y)6.46%
ROIC(3y)3.54%
ROIC(5y)3.43%
ROICexc(3y)3.65%
ROICexc(5y)3.51%
ROICexgc(3y)4.68%
ROICexgc(5y)4.58%
ROCE(3y)4.49%
ROCE(5y)4.34%
ROICexcg growth 3Y2.52%
ROICexcg growth 5Y2.2%
ROICexc growth 3Y4.04%
ROICexc growth 5Y3.63%
OM growth 3Y1.61%
OM growth 5Y2.57%
PM growth 3Y-1.87%
PM growth 5Y3.28%
GM growth 3Y-0.67%
GM growth 5Y0.37%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 14.13 | ||
| Debt/EBITDA | 6.25 | ||
| Cap/Depr | 249.29% | ||
| Cap/Sales | 79.86% | ||
| Interest Coverage | 3.04 | ||
| Cash Conversion | 142.54% | ||
| Profit Quality | 132.04% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.85 |
F-Score5
WACC6.62%
ROIC/WACC0.56
Cap/Depr(3y)238.06%
Cap/Depr(5y)238.59%
Cap/Sales(3y)80.31%
Cap/Sales(5y)83.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-47.62%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-68.18%
EPS Next Y21.3%
EPS Next 2Y14.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%-1.52%
Revenue Next Year5.42%
Revenue Next 2Y5.25%
Revenue Next 3Y8.95%
Revenue Next 5YN/A
EBIT growth 1Y-4.39%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year68.06%
EBIT Next 3Y25.48%
EBIT Next 5YN/A
FCF growth 1Y319.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y70.77%
OCF growth 3Y25.54%
OCF growth 5Y17.68%