WP CAREY INC (WPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPC - US92936U1097 - REIT
66.31 USD
-0.5 (-0.75%)
66.31 USD
0 (0%)
Taking everything into account, WPC scores 4 out of 10 in our fundamental rating. WPC was compared to 128 industry peers in the Diversified REITs industry. While WPC has a great profitability rating, there are quite some concerns on its financial health. WPC is quite expensive at the moment. It does show a decent growth rate.
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
WPC has a better Return On Assets (2.03%) than 63.28% of its industry peers.
WPC has a better Return On Equity (4.48%) than 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.98%, WPC is in the better half of the industry, outperforming 75.00% 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 3.05%.
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 Profit Margin of 21.75%. This is in the better half of the industry: WPC outperforms 69.53% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
The Operating Margin of WPC (51.49%) is better than 92.97% of its industry peers.
WPC's Operating Margin has improved in the last couple of years.
The Gross Margin of WPC (89.13%) is better than 91.41% of its industry peers.
WPC's Gross Margin has been stable in the last couple of years.
| 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
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 0.83, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC has a Altman-Z score of 0.83. This is in the better half of the industry: WPC outperforms 68.75% of its industry peers.
WPC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
WPC has a Debt to Equity ratio (1.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.61
WACC6.54%
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 86.72% of its industry peers.
A Quick Ratio of 0.29 indicates that WPC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, WPC is doing worse than 85.94% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 1.09% on average over the past years.
Looking at the last year, WPC shows a small growth in Revenue. The Revenue has grown by 5.59% in the last year.
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
WPC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.81% yearly.
The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
EPS Next Y1.97%
EPS Next 2Y12.95%
EPS Next 3Y9.81%
EPS Next 5YN/A
Revenue Next Year8.1%
Revenue Next 2Y5.8%
Revenue Next 3Y6.07%
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.
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
WPC is valuated quite expensively with a Price/Earnings ratio of 40.19.
WPC's Price/Earnings is on the same level as the industry average.
WPC is valuated expensively when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.87, WPC is valued on the expensive side.
WPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WPC is cheaper than 82.81% of the companies in the same industry.
WPC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.19 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
WPC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WPC is more expensive than 66.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WPC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WPC may justify a higher PE ratio.
PEG (NY)20.44
PEG (5Y)36.96
EPS Next 2Y12.95%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.49%, WPC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, WPC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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
214.24% of the earnings are spent on dividend by WPC. This is not a sustainable payout ratio.
DP214.24%
EPS Next 2Y12.95%
EPS Next 3Y9.81%
66.31
-0.5 (-0.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change0.45%
Ins Owners0.96%
Ins Owner Change0.49%
Market Cap14.53B
Revenue(TTM)1.68B
Net Income(TTM)365.06M
Analysts66.67
Price Target70.94 (6.98%)
Short Float %3.47%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
Yearly Dividend3.5
Dividend Growth(5Y)-3.5%
DP214.24%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)2.14%
PT rev (3m)5.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-34.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.19 | ||
| Fwd PE | 24.87 | ||
| P/S | 8.66 | ||
| P/FCF | N/A | ||
| P/OCF | 11.41 | ||
| P/B | 1.78 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)1.65
EY2.49%
EPS(NY)2.67
Fwd EY4.02%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)5.81
OCFY8.77%
SpS7.66
BVpS37.22
TBVpS32.71
PEG (NY)20.44
PEG (5Y)36.96
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
WACC6.54%
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 Y1.97%
EPS Next 2Y12.95%
EPS Next 3Y9.81%
EPS Next 5YN/A
Revenue 1Y (TTM)5.59%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%8.54%
Revenue Next Year8.1%
Revenue Next 2Y5.8%
Revenue Next 3Y6.07%
Revenue Next 5Y9.51%
EBIT growth 1Y12.62%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year58.03%
EBIT Next 3Y24.53%
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 4 / 10 to WPC.
What is the valuation status of WP CAREY INC (WPC) stock?
ChartMill assigns a valuation rating of 2 / 10 to WP CAREY INC (WPC). This can be considered as Overvalued.
What is the profitability of WPC stock?
WP CAREY INC (WPC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for WPC stock?
The Price/Earnings (PE) ratio for WP CAREY INC (WPC) is 40.19 and the Price/Book (PB) ratio is 1.78.
How financially healthy is WP CAREY INC?
The financial health rating of WP CAREY INC (WPC) is 1 / 10.