WP CAREY INC (WPC) Stock Fundamental Analysis
NYSE:WPC - New York Stock Exchange, Inc. - US92936U1097 - REIT - Currency: USD
WPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. WPC has an excellent profitability rating, but 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.
In the past year WPC had a positive cash flow from operations.
In the past 5 years WPC has always been profitable.
WPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WPC has a Return On Assets of 1.87%. This is in the better half of the industry: WPC outperforms 62.79% of its industry peers.
WPC has a better Return On Equity (4.09%) than 64.34% of its industry peers.
WPC has a better Return On Invested Capital (3.88%) than 75.19% 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 3.07%.
The 3 year average ROIC (3.54%) for WPC is below the current ROIC(3.88%), indicating increased profibility in the last year.
| 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 73.64% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
WPC has a Operating Margin of 51.14%. This is amongst the best in the industry. WPC outperforms 93.02% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
WPC's Gross Margin of 89.03% is amongst the best of the industry. WPC outperforms 90.70% 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.
The number of shares outstanding for WPC has been increased compared to 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 0.81, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC has a Altman-Z score of 0.81. This is in the better half of the industry: WPC outperforms 68.99% 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 58.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.58
WACC6.63%
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.
WPC's Current ratio of 0.29 is on the low side compared to the rest of the industry. WPC is outperformed by 86.05% 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.
The Quick ratio of WPC (0.29) is worse than 85.27% 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 -41.76%.
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.
The Revenue has been growing slightly by 0.23% 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)-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.
Based on estimates for the next years, WPC will show a quite strong growth in Revenue. The Revenue will grow by 9.12% on average per year.
EPS Next Y56.33%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y5.64%
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.
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 42.85, the valuation of WPC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WPC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WPC to the average of the S&P500 Index (26.84), we can say WPC is valued expensively.
WPC is valuated rather expensively with a Price/Forward Earnings ratio of 18.79.
Based on the Price/Forward Earnings ratio, WPC is valued cheaper than 93.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WPC to the average of the S&P500 Index (35.29), we can say WPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.85 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPC is valued a bit more expensive than 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.88 |
4.3 Compensation for Growth
WPC's 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)0.76
PEG (5Y)39.41
EPS Next 2Y28.79%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.45%, which is a nice return.
Compared to an average industry Dividend Yield of 6.54, WPC has a dividend in line with its industry peers.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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
230.94% of the earnings are spent on dividend by WPC. This is not a sustainable payout ratio.
DP230.94%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
65.13
-0.05 (-0.08%)
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 Change0.8%
Ins Owners0.96%
Ins Owner Change0.37%
Market Cap14.26B
Analysts65.56
Price Target66.91 (2.73%)
Short Float %1.88%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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)2.5%
PT rev (3m)2.98%
EPS NQ rev (1m)-25.28%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.43%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.85 | ||
| Fwd PE | 18.79 | ||
| P/S | 8.67 | ||
| P/FCF | N/A | ||
| P/OCF | 11.38 | ||
| P/B | 1.74 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 16.88 |
EPS(TTM)1.52
EY2.33%
EPS(NY)3.47
Fwd EY5.32%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)5.73
OCFY8.79%
SpS7.51
BVpS37.5
TBVpS33
PEG (NY)0.76
PEG (5Y)39.41
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 | 0.81 |
F-Score5
WACC6.63%
ROIC/WACC0.58
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 Year5.68%
Revenue Next 2Y5.64%
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%