WP CAREY INC (WPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPC - US92936U1097 - REIT
64.86 USD
+0.5 (+0.78%)
64.86 USD
0 (0%)
Taking everything into account, WPC scores 5 out of 10 in our fundamental rating. WPC was compared to 127 industry peers in the Diversified REITs industry. While WPC has a great profitability rating, there are quite some 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.
WPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WPC has a better Return On Assets (2.03%) than 62.99% of its industry peers.
WPC's Return On Equity of 4.48% is fine compared to the rest of the industry. WPC outperforms 62.99% 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 74.80% of the companies in the same industry.
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 3.06%.
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 Profit Margin of 21.75%. This is in the better half of the industry: WPC outperforms 69.29% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
WPC has a Operating Margin of 51.49%. This is amongst the best in the industry. WPC outperforms 92.91% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
The Gross Margin of WPC (89.13%) is better than 91.34% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WPC is destroying value.
The number of shares outstanding for WPC remains at a similar level compared to 1 year ago.
The number of shares outstanding for WPC has been increased compared to 5 years ago.
The debt/assets ratio for WPC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC has a better Altman-Z score (0.80) than 66.93% 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's Debt to Equity ratio of 1.06 is in line compared to the rest of the industry. WPC outperforms 57.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.61
WACC6.53%
2.3 Liquidity
A Current Ratio of 0.29 indicates that WPC may have some problems paying its short term obligations.
The Current ratio of WPC (0.29) is worse than 86.61% 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's Quick ratio of 0.29 is on the low side compared to the rest of the industry. WPC is outperformed by 85.83% 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%.
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 been growing slightly by 5.59% in the past year.
WPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
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
Based on estimates for the next years, WPC will show a very strong growth in Earnings Per Share. The EPS will grow by 42.83% on average per year.
WPC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
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.
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 39.31, which means the current valuation is very expensive for WPC.
The rest of the industry has a similar Price/Earnings ratio as WPC.
When comparing the Price/Earnings ratio of WPC to the average of the S&P500 Index (26.60), we can say WPC is valued slightly more expensively.
The Price/Forward Earnings ratio is 10.98, which indicates a very decent valuation of WPC.
98.43% 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 (23.23), we can say WPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WPC indicates a slightly more expensive valuation: WPC is more expensive than 61.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.41 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as WPC's earnings are expected to grow with 42.83% in the coming years.
PEG (NY)0.27
PEG (5Y)36.16
EPS Next 2Y68.14%
EPS Next 3Y42.83%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.49%, which is a nice return.
WPC's Dividend Yield is comparable with the industry average which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.00, 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 2Y68.14%
EPS Next 3Y42.83%
64.86
+0.5 (+0.78%)
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 Cap14.21B
Revenue(TTM)1.68B
Net Income(TTM)365.06M
Analysts66.67
Price Target70.47 (8.65%)
Short Float %3.6%
Short Ratio6.02
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-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)-0.52%
PT rev (3m)4.05%
EPS NQ rev (1m)116.67%
EPS NQ rev (3m)116.67%
EPS NY rev (1m)142.18%
EPS NY rev (3m)143.33%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 10.98 | ||
| P/S | 8.47 | ||
| P/FCF | N/A | ||
| P/OCF | 11.16 | ||
| P/B | 1.74 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 16.41 |
EPS(TTM)1.65
EY2.54%
EPS(NY)5.91
Fwd EY9.11%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)5.81
OCFY8.96%
SpS7.66
BVpS37.22
TBVpS32.71
PEG (NY)0.27
PEG (5Y)36.16
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 | 0.8 |
F-Score6
WACC6.53%
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 39.31 and the Price/Book (PB) ratio is 1.74.
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%.