WP CAREY INC (WPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPC - US92936U1097 - REIT
66.78 USD
+0.28 (+0.42%)
66.78 USD
0 (0%)
WPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 126 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.
Each year in the past 5 years WPC has been profitable.
WPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.03%, WPC is doing good in the industry, outperforming 63.49% of the companies in the same industry.
WPC has a Return On Equity of 4.48%. This is in the better half of the industry: WPC outperforms 63.49% of its industry peers.
With a decent Return On Invested Capital value of 3.98%, WPC is doing good in the industry, outperforming 74.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WPC is in line with the industry average of 3.06%.
The 3 year average ROIC (3.54%) for WPC is below the current ROIC(3.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.48% | ||
| ROIC | 3.98% |
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
WPC has a better Profit Margin (21.75%) than 69.84% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
WPC's Operating Margin of 51.49% is amongst the best of the industry. WPC outperforms 93.65% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
WPC has a better Gross Margin (89.13%) than 91.27% of its industry peers.
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 | 51.49% | ||
| PM (TTM) | 21.75% | ||
| GM | 89.13% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WPC is destroying value.
Compared to 1 year ago, WPC has about the same amount of shares outstanding.
WPC has more shares outstanding than it did 5 years ago.
WPC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that WPC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WPC (0.83) is better than 68.25% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that WPC has dependencies on debt financing.
The Debt to Equity ratio of WPC (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.61
WACC6.57%
2.3 Liquidity
A Current Ratio of 0.29 indicates that WPC may have some problems paying its short term obligations.
WPC has a Current ratio of 0.29. This is amonst the worse of the industry: WPC underperforms 86.51% of its industry peers.
WPC has a Quick Ratio of 0.29. This is a bad value and indicates that WPC is not financially healthy enough and could expect problems in meeting its short term obligations.
WPC has a worse Quick ratio (0.29) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.04%.
Measured over the past 5 years, WPC shows a small growth in Earnings Per Share. The EPS has been growing by 1.09% on average per year.
WPC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.59%.
The Revenue has been growing slightly by 5.13% on average over the past years.
EPS 1Y (TTM)-35.04%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%25.49%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%8.54%
3.2 Future
The Earnings Per Share is expected to grow by 42.83% on average over the next years. This is a very strong growth
Based on estimates for the next years, WPC will show a quite strong growth in Revenue. The Revenue will grow by 9.51% on average per year.
EPS Next Y146.94%
EPS Next 2Y68.14%
EPS Next 3Y42.83%
EPS Next 5YN/A
Revenue Next Year8.29%
Revenue Next 2Y6.7%
Revenue Next 3Y6.84%
Revenue Next 5Y9.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 40.47, the valuation of WPC can be described as expensive.
WPC's Price/Earnings ratio is in line with the industry average.
WPC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 11.30, the valuation of WPC can be described as very reasonable.
98.41% 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 (23.98), we can say WPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.47 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPC is valued a bit more expensive than the industry average as 62.70% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.75 |
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.
WPC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WPC's earnings are expected to grow with 42.83% in the coming years.
PEG (NY)0.28
PEG (5Y)37.23
EPS Next 2Y68.14%
EPS Next 3Y42.83%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.55%, which is a nice return.
Compared to an average industry Dividend Yield of 6.86, WPC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
5.2 History
The dividend of WPC decreases each year by -3.50%.
WPC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WPC pays out 214.24% of its income as dividend. This is not a sustainable payout ratio.
DP214.24%
EPS Next 2Y68.14%
EPS Next 3Y42.83%
66.78
+0.28 (+0.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners74.41%
Inst Owner Change0.05%
Ins Owners0.94%
Ins Owner Change-0.08%
Market Cap14.63B
Revenue(TTM)1.68B
Net Income(TTM)365.06M
Analysts65.56
Price Target70.47 (5.53%)
Short Float %3.6%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
Yearly Dividend3.5
Dividend Growth(5Y)-3.5%
DP214.24%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.46%
Min EPS beat(2)-74.41%
Max EPS beat(2)-2.51%
EPS beat(4)0
Avg EPS beat(4)-38.01%
Min EPS beat(4)-74.41%
Max EPS beat(4)-2.51%
EPS beat(8)3
Avg EPS beat(8)-11%
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)2.68%
Min Revenue beat(2)1.26%
Max Revenue beat(2)4.11%
Revenue beat(4)4
Avg Revenue beat(4)2.23%
Min Revenue beat(4)1.26%
Max Revenue beat(4)4.11%
Revenue beat(8)6
Avg Revenue beat(8)0.68%
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)-0.65%
PT rev (3m)3.43%
EPS NQ rev (1m)116.67%
EPS NQ rev (3m)120%
EPS NY rev (1m)142.18%
EPS NY rev (3m)143.33%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.47 | ||
| Fwd PE | 11.3 | ||
| P/S | 8.72 | ||
| P/FCF | N/A | ||
| P/OCF | 11.49 | ||
| P/B | 1.79 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 16.75 |
EPS(TTM)1.65
EY2.47%
EPS(NY)5.91
Fwd EY8.85%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)5.81
OCFY8.71%
SpS7.66
BVpS37.22
TBVpS32.71
PEG (NY)0.28
PEG (5Y)37.23
Graham Number37.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.48% | ||
| ROCE | 5.04% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.51% | ||
| OM | 51.49% | ||
| PM (TTM) | 21.75% | ||
| GM | 89.13% | ||
| 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)4.59%
ROICexgc(5y)4.53%
ROCE(3y)4.49%
ROCE(5y)4.34%
ROICexgc growth 3Y1.8%
ROICexgc growth 5Y1.77%
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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.32 | ||
| Cap/Depr | 346.51% | ||
| Cap/Sales | 105.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.83 |
F-Score6
WACC6.57%
ROIC/WACC0.61
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)-35.04%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%25.49%
EPS Next Y146.94%
EPS Next 2Y68.14%
EPS Next 3Y42.83%
EPS Next 5YN/A
Revenue 1Y (TTM)5.59%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%8.54%
Revenue Next Year8.29%
Revenue Next 2Y6.7%
Revenue Next 3Y6.84%
Revenue Next 5Y9.51%
EBIT growth 1Y12.62%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year59.92%
EBIT Next 3Y25.43%
EBIT Next 5Y21.28%
FCF growth 1Y-1220.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.39%
OCF growth 3Y25.54%
OCF growth 5Y17.68%
WP CAREY INC / WPC FAQ
Can you provide the ChartMill fundamental rating for WP CAREY INC?
ChartMill assigns a fundamental rating of 5 / 10 to WPC.
Can you provide the valuation status for WP CAREY INC?
ChartMill assigns a valuation rating of 5 / 10 to WP CAREY INC (WPC). This can be considered as Fairly Valued.
What is the profitability of WPC stock?
WP CAREY INC (WPC) has a profitability rating of 8 / 10.
What are the PE and PB ratios of WP CAREY INC (WPC) stock?
The Price/Earnings (PE) ratio for WP CAREY INC (WPC) is 40.47 and the Price/Book (PB) ratio is 1.79.
Can you provide the dividend sustainability for WPC stock?
The dividend rating of WP CAREY INC (WPC) is 4 / 10 and the dividend payout ratio is 214.24%.