WP CAREY INC (WPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPC - US92936U1097 - REIT
67.04 USD
-0.08 (-0.12%)
67.04 USD
0 (0%)
Overall WPC gets a fundamental rating of 4 out of 10. We evaluated WPC against 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
WPC had positive earnings in the past year.
In the past year WPC had a positive cash flow from operations.
In the past 5 years WPC has always been profitable.
In the past 5 years WPC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.03%, WPC is in the better half of the industry, outperforming 66.41% of the companies in the same industry.
With a decent Return On Equity value of 4.48%, WPC is doing good in the industry, outperforming 65.63% of the companies in the same industry.
WPC has a Return On Invested Capital of 3.98%. This is in the better half of the industry: WPC outperforms 75.00% 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 3.06%.
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
Looking at the Profit Margin, with a value of 21.75%, WPC is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
WPC's Profit Margin has improved in the last couple of years.
WPC has a better Operating Margin (51.49%) than 92.97% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
WPC's Gross Margin of 89.13% is amongst the best of the industry. WPC outperforms 90.63% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WPC is destroying value.
WPC has about the same amout of shares outstanding than it did 1 year ago.
WPC has more shares outstanding than it did 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 0.84, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC's Altman-Z score of 0.84 is fine compared to the rest of the industry. WPC outperforms 68.75% 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.
WPC's Debt to Equity ratio of 1.06 is in line compared to the rest of the industry. WPC outperforms 57.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.61
WACC6.5%
2.3 Liquidity
WPC has a Current 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 Current ratio of 0.29 is on the low side compared to the rest of the industry. WPC is outperformed by 86.72% of its industry peers.
A Quick Ratio of 0.29 indicates that WPC may have some problems paying 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 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for WPC have decreased strongly by -35.04% in the last year.
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.
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
The Earnings Per Share is expected to grow by 9.81% on average over the next years. This is quite good.
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 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
With a Price/Earnings ratio of 40.63, WPC can be considered very expensive at the moment.
WPC's Price/Earnings is on the same level as the industry average.
WPC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.65.
Based on the Price/Forward Earnings ratio of 25.14, the valuation of WPC can be described as expensive.
83.59% of the companies in the same industry are more expensive than WPC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.45. WPC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.63 | ||
| Fwd PE | 25.14 |
4.2 Price Multiples
67.97% of the companies in the same industry are cheaper than WPC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WPC may justify a higher PE ratio.
PEG (NY)20.66
PEG (5Y)37.37
EPS Next 2Y12.95%
EPS Next 3Y9.81%
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 6.59.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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
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%
67.04
-0.08 (-0.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner Change0.43%
Ins Owners0.96%
Ins Owner Change0.56%
Market Cap14.68B
Revenue(TTM)1.68B
Net Income(TTM)365.06M
Analysts66.67
Price Target70.84 (5.67%)
Short Float %3.47%
Short Ratio6.37
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)3.97%
PT rev (3m)4.6%
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 | 40.63 | ||
| Fwd PE | 25.14 | ||
| P/S | 8.75 | ||
| P/FCF | N/A | ||
| P/OCF | 11.52 | ||
| P/B | 1.8 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)1.65
EY2.46%
EPS(NY)2.67
Fwd EY3.98%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)5.82
OCFY8.68%
SpS7.66
BVpS37.24
TBVpS32.74
PEG (NY)20.66
PEG (5Y)37.37
Graham Number37.18
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 | 0.84 |
F-Score6
WACC6.5%
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 40.63 and the Price/Book (PB) ratio is 1.8.
How financially healthy is WP CAREY INC?
The financial health rating of WP CAREY INC (WPC) is 1 / 10.