WP CAREY INC (WPC) Stock Fundamental Analysis
NYSE:WPC - New York Stock Exchange, Inc. - US92936U1097 - REIT
We assign a fundamental rating of 5 out of 10 to WPC. WPC was compared to 129 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 on the other hand it scores bad on growth.
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.
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 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 6.51%, WPC is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
WPC has a Return On Invested Capital of 3.60%. This is in the better half of the industry: WPC outperforms 69.84% 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 3.11%.
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 87.30% of the companies in the same industry.
In the last couple of years the Profit Margin of WPC has declined.
WPC has a better Operating Margin (48.28%) than 89.68% of its industry peers.
WPC's Operating Margin has been stable in the last couple of years.
WPC has a better Gross Margin (88.40%) than 91.27% 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.
WPC has more 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 0.82, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC has a Altman-Z score of 0.82. This is in the better half of the industry: WPC outperforms 61.90% of its industry peers.
WPC has a debt to FCF ratio of 9.78. This is a negative value and a sign of low solvency as WPC would need 9.78 years to pay back of all of its debts.
WPC has a better Debt to FCF ratio (9.78) than 88.89% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that WPC is somewhat dependend on debt financing.
The Debt to Equity ratio of WPC (0.93) is better than 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 9.78 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.54
WACC6.67%
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.
WPC's Current ratio of 1.08 is in line compared to the rest of the industry. WPC outperforms 42.86% of its industry peers.
WPC has a Quick Ratio of 1.04. This is a normal value and indicates that WPC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WPC (1.04) 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%.
The Earnings Per Share has been decreasing by -1.22% on average over the past years.
The Revenue has decreased by -8.22% in the past year.
The Revenue has been growing by 14.48% on average over the past years. This is quite good.
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
Based on estimates for the next years, WPC will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.18% on average per year.
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-37.05%
EPS Next 2Y-20.45%
EPS Next 3Y-13.18%
EPS Next 5YN/A
Revenue Next Year-10.26%
Revenue Next 2Y-2.7%
Revenue Next 3Y0.53%
Revenue Next 5Y3.83%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.39 indicates a rather expensive valuation of WPC.
WPC's Price/Earnings ratio is rather cheap when compared to the industry. WPC is cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. WPC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 22.52, the valuation of WPC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPC indicates a rather cheap valuation: WPC is cheaper than 88.10% of the companies listed in the same industry.
WPC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 22.52 |
4.2 Price Multiples
WPC's Enterprise Value to EBITDA is on the same level as the industry average.
82.54% of the companies in the same industry are more expensive than WPC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 15.22 |
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 -13.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.45%
EPS Next 3Y-13.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.34%, WPC is a good candidate for dividend investing.
WPC's Dividend Yield is a higher than the industry average which is at 18.51.
Compared to an average S&P500 Dividend Yield of 2.28, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
5.2 History
The dividend of WPC has a limited annual growth rate of 5.69%.
WPC has paid a dividend for at least 10 years, which is 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-20.45%
EPS Next 3Y-13.18%
WP CAREY INC
NYSE:WPC (1/21/2025, 8:04:00 PM)
Premarket: 56.91 +0.04 (+0.07%)56.87
+1.08 (+1.94%)
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-0.33%
Ins Owners0.9%
Ins Owner Change0.18%
Market Cap12.45B
Analysts53.33
Price Target61.76 (8.6%)
Short Float %1.58%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
Yearly Dividend4.27
Dividend Growth(5Y)5.69%
DP143.85%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.3%
PT rev (3m)1.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)0%
EPS NY rev (3m)3.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 22.52 | ||
| P/S | 7.83 | ||
| P/FCF | 15.27 | ||
| P/OCF | 6.92 | ||
| P/B | 1.45 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 15.22 |
EPS(TTM)2.54
EY4.47%
EPS(NY)2.53
Fwd EY4.44%
FCF(TTM)3.72
FCFY6.55%
OCF(TTM)8.21
OCFY14.44%
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 | 0.82 |
F-Score5
WACC6.67%
ROIC/WACC0.54
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-37.05%
EPS Next 2Y-20.45%
EPS Next 3Y-13.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.22%
Revenue growth 3Y12.92%
Revenue growth 5Y14.48%
Sales Q2Q%-11.93%
Revenue Next Year-10.26%
Revenue Next 2Y-2.7%
Revenue Next 3Y0.53%
Revenue Next 5Y3.83%
EBIT growth 1Y-3.76%
EBIT growth 3Y13.73%
EBIT growth 5Y14.97%
EBIT Next Year45.59%
EBIT Next 3Y18.55%
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%