WP CAREY INC (WPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPC - US92936U1097 - REIT
64.62 USD
+0.2 (+0.31%)
64.62 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WPC. WPC was compared to 128 industry peers in the Diversified REITs industry. WPC has an excellent profitability rating, but there are concerns on its financial health. WPC is valied quite expensively at the moment, while 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.
Each year in the past 5 years WPC has 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 63.28% of its industry peers.
The Return On Equity of WPC (4.48%) is better than 62.50% of its industry peers.
WPC has a better Return On Invested Capital (3.98%) than 75.00% 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 3.05%.
The last Return On Invested Capital (3.98%) for WPC is above the 3 year average (3.54%), which is a sign of increasing profitability.
| 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 69.53% of the companies in the same industry.
WPC's Profit Margin has improved in the last couple of years.
The Operating Margin of WPC (51.49%) is better than 92.97% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
WPC has a better Gross Margin (89.13%) 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 | 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
WPC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, WPC has a worse debt to assets ratio.
2.2 Solvency
WPC has an Altman-Z score of 0.80. This is a bad value and indicates that WPC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.80, WPC is in the better half of the industry, outperforming 67.97% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that WPC has dependencies on debt financing.
WPC has a Debt to Equity ratio of 1.06. This is comparable 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 | 0.8 |
ROIC/WACC0.61
WACC6.49%
2.3 Liquidity
A Current Ratio of 0.29 indicates that WPC may have some problems paying its short term obligations.
The Current ratio of WPC (0.29) is worse than 86.72% 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'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
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.04%.
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 5.59% in the last 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
Based on estimates for the next years, WPC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.81% on average per year.
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 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
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
Based on the Price/Earnings ratio of 39.16, the valuation of WPC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as WPC.
WPC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.38.
Based on the Price/Forward Earnings ratio of 24.23, the valuation of WPC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WPC is valued cheaply inside the industry as 86.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, WPC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.16 | ||
| Fwd PE | 24.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPC is valued a bit more expensive than 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WPC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)19.92
PEG (5Y)36.02
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.
Compared to an average industry Dividend Yield of 6.20, WPC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, WPC pays a better dividend.
| 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
WPC pays out 214.24% of its income as dividend. This is not a sustainable payout ratio.
DP214.24%
EPS Next 2Y12.95%
EPS Next 3Y9.81%
64.62
+0.2 (+0.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change0.45%
Ins Owners0.96%
Ins Owner Change0.49%
Market Cap14.16B
Revenue(TTM)1.68B
Net Income(TTM)365.06M
Analysts66.67
Price Target70.94 (9.78%)
Short Float %3.51%
Short Ratio6.24
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)2.14%
PT rev (3m)4.74%
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)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.16 | ||
| Fwd PE | 24.23 | ||
| P/S | 8.44 | ||
| P/FCF | N/A | ||
| P/OCF | 11.12 | ||
| P/B | 1.74 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)1.65
EY2.55%
EPS(NY)2.67
Fwd EY4.13%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)5.81
OCFY9%
SpS7.66
BVpS37.22
TBVpS32.71
PEG (NY)19.92
PEG (5Y)36.02
Graham Number37.17
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 | 0.8 |
F-Score6
WACC6.49%
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 39.16 and the Price/Book (PB) ratio is 1.74.
How financially healthy is WP CAREY INC?
The financial health rating of WP CAREY INC (WPC) is 1 / 10.