WP CAREY INC (WPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPC - US92936U1097 - REIT
68.55 USD
-1.04 (-1.49%)
68.55 USD
0 (0%)
Taking everything into account, WPC scores 5 out of 10 in our fundamental rating. WPC was compared to 125 industry peers in the Diversified REITs industry. While WPC belongs to the best of the industry regarding profitability, there are 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.
- WPC had a positive operating cash flow in the past year.
- 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
- WPC has a Return On Assets of 2.03%. This is in the better half of the industry: WPC outperforms 63.20% of its industry peers.
- With a decent Return On Equity value of 4.48%, WPC is doing good in the industry, outperforming 63.20% 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 74.40% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WPC is in line with the industry average of 3.07%.
- 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 69.60% of its industry peers.
- WPC's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 51.49%, WPC belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
- 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 91.20% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WPC 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 0.86, we must say that WPC is in the distress zone and has some risk of bankruptcy.
- WPC has a Altman-Z score of 0.86. This is in the better half of the industry: WPC outperforms 68.00% 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 58.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.6
WACC6.66%
2.3 Liquidity
- A Current Ratio of 0.29 indicates that WPC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.29, WPC is doing worse than 87.20% of the companies in the same industry.
- A Quick Ratio of 0.29 indicates that WPC may have some problems paying its short term obligations.
- The Quick ratio of WPC (0.29) is worse than 86.40% 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
- WPC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.83% yearly.
- 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 Year8.35%
Revenue Next 2Y6.96%
Revenue Next 3Y7.34%
Revenue Next 5Y9.51%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 41.55 indicates a quite expensive valuation of WPC.
- The rest of the industry has a similar Price/Earnings ratio as WPC.
- WPC is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- WPC is valuated reasonably with a Price/Forward Earnings ratio of 11.60.
- Based on the Price/Forward Earnings ratio, WPC is valued cheaply inside the industry as 98.40% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. WPC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.55 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
- 66.40% 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 | 17.08 |
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.
- WPC has an outstanding profitability rating, which 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)0.28
PEG (5Y)38.21
EPS Next 2Y68.14%
EPS Next 3Y42.83%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.51%, WPC is a good candidate for dividend investing.
- WPC's Dividend Yield is comparable with the industry average which is at 6.59.
- Compared to an average S&P500 Dividend Yield of 1.82, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
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 214.24% of its income as dividend. This is not a sustainable payout ratio.
DP214.24%
EPS Next 2Y68.14%
EPS Next 3Y42.83%
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 41.55 and the Price/Book (PB) ratio is 1.84.
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%.