WP CAREY INC (WPC)
US92936U1097 - REIT
Overall WPC gets a fundamental rating of 5 out of 10. We evaluated WPC against 130 industry peers in the Diversified REITs industry. WPC scores excellent on profitability, but there are some minor concerns on its financial health. WPC has a valuation in line with the averages, but it does not seem to be growing.
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.
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 Return On Assets of 3.17%. This is in the better half of the industry: WPC outperforms 78.13% of its industry peers.
WPC has a Return On Equity of 6.51%. This is in the better half of the industry: WPC outperforms 78.91% of its industry peers.
WPC has a better Return On Invested Capital (3.60%) than 70.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WPC is in line with the industry average of 3.08%.
The 3 year average ROIC (3.44%) for WPC is below the current ROIC(3.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 6.51% | ||
| ROIC | 3.6% |
ROA(3y)3.3%
ROA(5y)3.03%
ROE(3y)6.74%
ROE(5y)6.25%
ROIC(3y)3.44%
ROIC(5y)3.32%
1.3 Margins
Looking at the Profit Margin, with a value of 35.12%, WPC belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of WPC has declined.
With an excellent Operating Margin value of 48.28%, WPC belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
WPC's Operating Margin has been stable in the last couple of years.
The Gross Margin of WPC (88.40%) 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 | 48.28% | ||
| PM (TTM) | 35.12% | ||
| GM | 88.4% |
OM growth 3Y0.72%
OM growth 5Y0.43%
PM growth 3Y2.6%
PM growth 5Y-2.61%
GM growth 3Y-1.03%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WPC is destroying value.
The number of shares outstanding for WPC has been increased compared to 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
WPC has an Altman-Z score of 0.77. This is a bad value and indicates that WPC is not financially healthy and even has some risk of bankruptcy.
WPC has a Altman-Z score of 0.77. This is in the better half of the industry: WPC outperforms 62.50% of its industry peers.
The Debt to FCF ratio of WPC is 9.78, which is on the high side as it means it would take WPC, 9.78 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 9.78, WPC belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
WPC has a Debt/Equity ratio of 0.93. This is a neutral value indicating WPC is somewhat dependend on debt financing.
WPC has a Debt to Equity ratio of 0.93. This is in the better half of the industry: WPC outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 9.78 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.55
WACC6.57%
2.3 Liquidity
WPC has a Current Ratio of 1.08. This is a normal value and indicates that WPC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WPC (1.08) is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that WPC should not have too much problems paying its short term obligations.
WPC has a Quick ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.02%.
Measured over the past years, WPC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.22% on average per year.
WPC shows a decrease in Revenue. In the last year, the revenue decreased by -8.22%.
WPC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.48% yearly.
EPS 1Y (TTM)-45.02%
EPS 3Y15.35%
EPS 5Y-1.22%
EPS Q2Q%-12.07%
Revenue 1Y (TTM)-8.22%
Revenue growth 3Y12.92%
Revenue growth 5Y14.48%
Sales Q2Q%-11.93%
3.2 Future
The Earnings Per Share is expected to decrease by -12.79% on average over the next years. This is quite bad
WPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y-38.15%
EPS Next 2Y-22.75%
EPS Next 3Y-12.79%
EPS Next 5YN/A
Revenue Next Year-11.92%
Revenue Next 2Y-3.35%
Revenue Next 3Y-0.52%
Revenue Next 5Y3.83%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.36, the valuation of WPC can be described as rather expensive.
WPC's Price/Earnings ratio is rather cheap when compared to the industry. WPC is cheaper than 80.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, WPC is valued a bit cheaper.
WPC is valuated rather expensively with a Price/Forward Earnings ratio of 22.78.
Based on the Price/Forward Earnings ratio, WPC is valued cheaper than 88.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, WPC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 22.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WPC.
Based on the Price/Free Cash Flow ratio, WPC is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.56 | ||
| EV/EBITDA | 14.64 |
4.3 Compensation for Growth
WPC has a very decent profitability rating, which may justify a higher PE ratio.
WPC's earnings are expected to decrease with -12.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.75%
EPS Next 3Y-12.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.59%, WPC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 15.68, WPC pays a bit more dividend than its industry peers.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
5.2 History
The dividend of WPC has a limited annual growth rate of 5.69%.
WPC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.69%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
143.85% of the earnings are spent on dividend by WPC. This is not a sustainable payout ratio.
The Dividend Rate of WPC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP143.85%
EPS Next 2Y-22.75%
EPS Next 3Y-12.79%
WP CAREY INC
NYSE:WPC (12/20/2024, 8:04:00 PM)
After market: 54.13 -0.12 (-0.22%)54.25
+0.81 (+1.52%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.28%
Inst Owner Change-0.64%
Ins Owners0.9%
Ins Owner Change0.61%
Market Cap11.87B
Analysts54.29
Price Target61.94 (14.18%)
Short Float %1.41%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
Dividend Growth(5Y)5.69%
DP143.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.12%
Min EPS beat(2)-4.73%
Max EPS beat(2)10.96%
EPS beat(4)3
Avg EPS beat(4)16.01%
Min EPS beat(4)-4.73%
Max EPS beat(4)34.5%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1.01%
Min Revenue beat(2)0.44%
Max Revenue beat(2)1.59%
Revenue beat(4)2
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)1.59%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-1.62%
PT rev (3m)2.06%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)1.24%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)1.76%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 22.78 | ||
| P/S | 7.47 | ||
| P/FCF | 14.56 | ||
| P/OCF | 6.61 | ||
| P/B | 1.38 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 14.64 |
EPS(TTM)2.54
EY4.68%
EPS(NY)2.38
Fwd EY4.39%
FCF(TTM)3.72
FCFY6.87%
OCF(TTM)8.21
OCFY15.14%
SpS7.26
BVpS39.2
TBVpS27.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 6.51% | ||
| ROCE | 4.56% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.78% | ||
| ROICexgc | 4.87% | ||
| OM | 48.28% | ||
| PM (TTM) | 35.12% | ||
| GM | 88.4% | ||
| FCFM | 51.29% |
ROA(3y)3.3%
ROA(5y)3.03%
ROE(3y)6.74%
ROE(5y)6.25%
ROIC(3y)3.44%
ROIC(5y)3.32%
ROICexc(3y)3.51%
ROICexc(5y)3.38%
ROICexgc(3y)4.56%
ROICexgc(5y)4.48%
ROCE(3y)4.35%
ROCE(5y)4.2%
ROICexcg growth 3Y4.6%
ROICexcg growth 5Y8.86%
ROICexc growth 3Y6.74%
ROICexc growth 5Y10.23%
OM growth 3Y0.72%
OM growth 5Y0.43%
PM growth 3Y2.6%
PM growth 5Y-2.61%
GM growth 3Y-1.03%
GM growth 5Y-0.28%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 9.78 | ||
| Debt/EBITDA | 6.19 | ||
| Cap/Depr | 188.67% | ||
| Cap/Sales | 61.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.56% | ||
| Profit Quality | 146.06% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 0.77 |
F-Score5
WACC6.57%
ROIC/WACC0.55
Cap/Depr(3y)251.45%
Cap/Depr(5y)227.13%
Cap/Sales(3y)89.25%
Cap/Sales(5y)82.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.02%
EPS 3Y15.35%
EPS 5Y-1.22%
EPS Q2Q%-12.07%
EPS Next Y-38.15%
EPS Next 2Y-22.75%
EPS Next 3Y-12.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.22%
Revenue growth 3Y12.92%
Revenue growth 5Y14.48%
Sales Q2Q%-11.93%
Revenue Next Year-11.92%
Revenue Next 2Y-3.35%
Revenue Next 3Y-0.52%
Revenue Next 5Y3.83%
EBIT growth 1Y-3.76%
EBIT growth 3Y13.73%
EBIT growth 5Y14.97%
EBIT Next Year44.6%
EBIT Next 3Y19.71%
EBIT Next 5Y16.35%
FCF growth 1Y293.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y79.1%
OCF growth 3Y10.23%
OCF growth 5Y16.09%