WP CAREY INC (WPC) Stock Fundamental Analysis
USA - NYSE:WPC - US92936U1097 - REIT
67.45 USD
-0.49 (-0.72%)
67.45 USD
0 (0%)
WPC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. WPC has an excellent profitability rating, but there are 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.
WPC had a positive operating cash flow in the past year.
WPC had positive earnings in each of the past 5 years.
Each year in the past 5 years WPC had a positive operating cash flow.
1.2 Ratios
WPC has a Return On Assets of 1.87%. This is in the better half of the industry: WPC outperforms 61.54% of its industry peers.
The Return On Equity of WPC (4.09%) is better than 63.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.88%, WPC is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WPC is in line with the industry average of 3.05%.
The last Return On Invested Capital (3.88%) for WPC is above the 3 year average (3.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 4.09% | ||
| ROIC | 3.88% |
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
The Profit Margin of WPC (20.42%) is better than 73.08% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
The Operating Margin of WPC (51.14%) is better than 93.08% of its industry peers.
WPC's Operating Margin has improved in the last couple of years.
WPC has a Gross Margin of 89.03%. This is amongst the best in the industry. WPC outperforms 90.77% of its industry peers.
WPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.14% | ||
| PM (TTM) | 20.42% | ||
| GM | 89.03% |
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.
The number of shares outstanding for WPC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WPC has more shares outstanding
The debt/assets ratio for WPC is higher compared to a year ago.
2.2 Solvency
WPC has an Altman-Z score of 0.85. This is a bad value and indicates that WPC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WPC (0.85) is better than 69.23% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that WPC has dependencies on debt financing.
WPC's Debt to Equity ratio of 1.05 is in line compared to the rest of the industry. WPC outperforms 59.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.6
WACC6.51%
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.
The Current ratio of WPC (0.29) is worse than 86.92% 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 Quick ratio of 0.29. This is amonst the worse of the industry: WPC underperforms 86.15% 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 -41.76% 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.
Looking at the last year, WPC shows a small growth in Revenue. The Revenue has grown by 0.23% in the last year.
Measured over the past years, WPC shows a small growth in Revenue. The Revenue has been growing by 5.13% on average per year.
EPS 1Y (TTM)-41.76%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-64.62%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%10.55%
3.2 Future
The Earnings Per Share is expected to grow by 9.94% on average over the next years. This is quite good.
WPC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.12% yearly.
EPS Next Y56.33%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
EPS Next 5YN/A
Revenue Next Year8.04%
Revenue Next 2Y5.67%
Revenue Next 3Y5.61%
Revenue Next 5Y9.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
WPC is valuated quite expensively with a Price/Earnings ratio of 44.38.
Compared to the rest of the industry, the Price/Earnings ratio of WPC is on the same level as its industry peers.
WPC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 19.46, which indicates a rather expensive current valuation of WPC.
93.85% of the companies in the same industry are more expensive than WPC, based on the Price/Forward Earnings ratio.
WPC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.38 | ||
| Fwd PE | 19.46 |
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 72.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.34 |
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.
PEG (NY)0.79
PEG (5Y)40.82
EPS Next 2Y28.79%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, WPC is a good candidate for dividend investing.
WPC's Dividend Yield is comparable with the industry average which is at 6.66.
Compared to an average S&P500 Dividend Yield of 2.38, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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
WPC pays out 230.94% of its income as dividend. This is not a sustainable payout ratio.
DP230.94%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
67.45
-0.49 (-0.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.51%
Inst Owner Change0.97%
Ins Owners0.96%
Ins Owner Change0.37%
Market Cap14.77B
Analysts65.56
Price Target67.73 (0.42%)
Short Float %2.53%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
Yearly Dividend3.5
Dividend Growth(5Y)-3.5%
DP230.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-43.12%
Min EPS beat(2)-74.41%
Max EPS beat(2)-11.82%
EPS beat(4)0
Avg EPS beat(4)-38.57%
Min EPS beat(4)-74.41%
Max EPS beat(4)-4.73%
EPS beat(8)3
Avg EPS beat(8)-11.88%
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)3.12%
Min Revenue beat(2)2.14%
Max Revenue beat(2)4.11%
Revenue beat(4)4
Avg Revenue beat(4)2.48%
Min Revenue beat(4)1.42%
Max Revenue beat(4)4.11%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
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)1.22%
PT rev (3m)3.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)2.23%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.38 | ||
| Fwd PE | 19.46 | ||
| P/S | 8.98 | ||
| P/FCF | N/A | ||
| P/OCF | 11.78 | ||
| P/B | 1.8 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 17.34 |
EPS(TTM)1.52
EY2.25%
EPS(NY)3.47
Fwd EY5.14%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)5.72
OCFY8.49%
SpS7.51
BVpS37.5
TBVpS32.99
PEG (NY)0.79
PEG (5Y)40.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 4.09% | ||
| ROCE | 4.91% | ||
| ROIC | 3.88% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 4.38% | ||
| OM | 51.14% | ||
| PM (TTM) | 20.42% | ||
| GM | 89.03% | ||
| 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%
ROICexcg growth 3Y1.8%
ROICexcg 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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 272.19% | ||
| Cap/Sales | 82.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.85 |
F-Score5
WACC6.51%
ROIC/WACC0.6
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)-41.76%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-64.62%
EPS Next Y56.33%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
EPS Next 5YN/A
Revenue 1Y (TTM)0.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%10.55%
Revenue Next Year8.04%
Revenue Next 2Y5.67%
Revenue Next 3Y5.61%
Revenue Next 5Y9.12%
EBIT growth 1Y8.48%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year62.28%
EBIT Next 3Y24.25%
EBIT Next 5Y20.8%
FCF growth 1Y75.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.34%
OCF growth 3Y25.54%
OCF growth 5Y17.68%