WP CAREY INC (WPC) Stock Fundamental Analysis
NYSE:WPC - New York Stock Exchange, Inc. - US92936U1097 - REIT - Currency: USD
WPC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. WPC has an excellent profitability rating, but there are concerns on its financial health. WPC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WPC was profitable.
WPC had a positive operating cash flow in the past year.
WPC had positive earnings in each of the past 5 years.
WPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WPC (2.47%) is better than 71.54% of its industry peers.
WPC has a Return On Equity of 5.11%. This is in the better half of the industry: WPC outperforms 70.00% of its industry peers.
WPC's Return On Invested Capital of 3.77% is fine compared to the rest of the industry. WPC outperforms 71.54% of its industry peers.
WPC had an Average Return On Invested Capital over the past 3 years of 3.54%. This is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.77%) for WPC is above the 3 year average (3.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 5.11% | ||
| ROIC | 3.77% |
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 26.66%, WPC belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
WPC's Profit Margin has improved in the last couple of years.
The Operating Margin of WPC (49.06%) is better than 90.77% of its industry peers.
WPC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 88.85%, WPC belongs to the best of the industry, outperforming 90.77% 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 | 49.06% | ||
| PM (TTM) | 26.66% | ||
| GM | 88.85% |
OM growth 3Y1.61%
OM growth 5Y2.57%
PM growth 3Y-1.85%
PM growth 5Y3.29%
GM growth 3Y-0.67%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WPC is destroying value.
WPC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WPC has been increased compared to 5 years ago.
Compared to 1 year ago, WPC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC's Altman-Z score of 0.86 is fine compared to the rest of the industry. WPC outperforms 70.00% of its industry peers.
WPC has a Debt/Equity ratio of 0.94. This is a neutral value indicating WPC is somewhat dependend on debt financing.
WPC has a better Debt to Equity ratio (0.94) than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.48
WACC7.9%
2.3 Liquidity
WPC has a Current Ratio of 0.23. This is a bad value and indicates that WPC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.23, WPC is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
WPC has a Quick Ratio of 0.23. This is a bad value and indicates that WPC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.23, WPC is not doing good in the industry: 89.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.57%.
WPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
The Revenue has decreased by -5.89% in the past year.
The Revenue has been growing slightly by 5.13% on average over the past years.
EPS 1Y (TTM)-41.57%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-20.83%
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%5.15%
3.2 Future
The Earnings Per Share is expected to grow by 13.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.50% on average over the next years.
EPS Next Y70.11%
EPS Next 2Y35.1%
EPS Next 3Y13.68%
EPS Next 5YN/A
Revenue Next Year5.29%
Revenue Next 2Y5.58%
Revenue Next 3Y4.65%
Revenue Next 5Y7.5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.59, WPC can be considered very expensive at the moment.
60.77% of the companies in the same industry are more expensive than WPC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, WPC is valued at the same level.
The Price/Forward Earnings ratio is 16.58, which indicates a correct valuation of WPC.
95.38% of the companies in the same industry are more expensive than WPC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WPC to the average of the S&P500 Index (21.90), we can say WPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPC is valued a bit more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.51 |
4.3 Compensation for Growth
WPC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of WPC may justify a higher PE ratio.
WPC's earnings are expected to grow with 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)29.98
EPS Next 2Y35.1%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.72%, WPC is a good candidate for dividend investing.
WPC's Dividend Yield is comparable with the industry average which is at 6.64.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
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
180.11% of the earnings are spent on dividend by WPC. This is not a sustainable payout ratio.
DP180.11%
EPS Next 2Y35.1%
EPS Next 3Y13.68%
63.23
-0.09 (-0.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.68%
Inst Owner Change3.58%
Ins Owners0.95%
Ins Owner Change2.99%
Market Cap13.85B
Analysts54.29
Price Target65.28 (3.24%)
Short Float %2.4%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
Yearly Dividend3.5
Dividend Growth(5Y)-3.5%
DP180.11%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.56%
Min EPS beat(2)-63.31%
Max EPS beat(2)-11.82%
EPS beat(4)1
Avg EPS beat(4)-17.22%
Min EPS beat(4)-63.31%
Max EPS beat(4)10.96%
EPS beat(8)3
Avg EPS beat(8)-2.61%
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)1.78%
Min Revenue beat(2)1.42%
Max Revenue beat(2)2.14%
Revenue beat(4)4
Avg Revenue beat(4)1.56%
Min Revenue beat(4)0.44%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
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)0.47%
PT rev (3m)2.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)51.49%
EPS NY rev (1m)-12.33%
EPS NY rev (3m)31.18%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 16.58 | ||
| P/S | 8.64 | ||
| P/FCF | N/A | ||
| P/OCF | 12.93 | ||
| P/B | 1.66 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 16.51 |
EPS(TTM)1.94
EY3.07%
EPS(NY)3.81
Fwd EY6.03%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)4.89
OCFY7.73%
SpS7.32
BVpS38.19
TBVpS33.74
PEG (NY)0.46
PEG (5Y)29.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 5.11% | ||
| ROCE | 4.77% | ||
| ROIC | 3.77% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 4.32% | ||
| OM | 49.06% | ||
| PM (TTM) | 26.66% | ||
| GM | 88.85% | ||
| FCFM | N/A |
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-1.85%
PM growth 5Y3.29%
GM growth 3Y-0.67%
GM growth 5Y0.37%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.03 | ||
| Cap/Depr | 242.21% | ||
| Cap/Sales | 78.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 0.86 |
F-Score5
WACC7.9%
ROIC/WACC0.48
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)-41.57%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-20.83%
EPS Next Y70.11%
EPS Next 2Y35.1%
EPS Next 3Y13.68%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%5.15%
Revenue Next Year5.29%
Revenue Next 2Y5.58%
Revenue Next 3Y4.65%
Revenue Next 5Y7.5%
EBIT growth 1Y-4.65%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year63.69%
EBIT Next 3Y23.94%
EBIT Next 5Y19.09%
FCF growth 1Y-101.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.94%
OCF growth 3Y25.54%
OCF growth 5Y17.68%