WP CAREY INC (WPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPC - US92936U1097 - REIT
66.31 USD
-0.5 (-0.75%)
66.31 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 scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, WPC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WPC had positive earnings in the past year.
WPC had a positive operating cash flow in the past year.
WPC had positive earnings in each of the past 5 years.
WPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WPC's Return On Assets of 2.03% is fine compared to the rest of the industry. WPC outperforms 66.41% of its industry peers.
Looking at the Return On Equity, with a value of 4.48%, WPC is in the better half of the industry, outperforming 65.63% 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 75.00% 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 3.06%.
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
WPC has a Profit Margin of 21.75%. This is in the better half of the industry: WPC outperforms 73.44% of its industry peers.
In the last couple of years the Profit Margin of WPC has grown nicely.
WPC has a better Operating Margin (51.49%) than 92.97% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
WPC has a Gross Margin of 89.13%. This is amongst the best in the industry. WPC outperforms 90.63% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WPC is destroying value.
Compared to 1 year ago, WPC has about the same amount of shares outstanding.
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 0.83, we must say that WPC is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.83, WPC is doing good in the industry, outperforming 68.75% of the companies in the same industry.
WPC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WPC (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.61
WACC6.54%
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.
Looking at the Current ratio, with a value of 0.29, WPC is doing worse than 86.72% 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.
With a Quick ratio value of 0.29, WPC is not doing good in the industry: 85.94% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 5.59% in the past 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)-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
The Earnings Per Share is expected to grow by 9.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
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
The Price/Earnings ratio is 40.19, which means the current valuation is very expensive for WPC.
WPC's Price/Earnings ratio is in line with the industry average.
WPC is valuated expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
WPC is valuated rather expensively with a Price/Forward Earnings ratio of 24.87.
WPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WPC is cheaper than 84.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WPC to the average of the S&P500 Index (36.10), we can say WPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.19 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
67.19% 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 | 16.8 |
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)20.44
PEG (5Y)36.96
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.
WPC's Dividend Yield is comparable with the industry average which is at 6.58.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| 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%
66.31
-0.5 (-0.75%)
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 Change0.43%
Ins Owners0.96%
Ins Owner Change0.56%
Market Cap14.53B
Revenue(TTM)1.68B
Net Income(TTM)365.06M
Analysts66.67
Price Target70.94 (6.98%)
Short Float %3.47%
Short Ratio6.4
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%
PT rev (3m)4.6%
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)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.19 | ||
| Fwd PE | 24.87 | ||
| P/S | 8.66 | ||
| P/FCF | N/A | ||
| P/OCF | 11.41 | ||
| P/B | 1.78 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)1.65
EY2.49%
EPS(NY)2.67
Fwd EY4.02%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)5.81
OCFY8.77%
SpS7.66
BVpS37.22
TBVpS32.71
PEG (NY)20.44
PEG (5Y)36.96
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 | 0.83 |
F-Score6
WACC6.54%
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 40.19 and the Price/Book (PB) ratio is 1.78.
How financially healthy is WP CAREY INC?
The financial health rating of WP CAREY INC (WPC) is 1 / 10.