WP CAREY INC (WPC) Stock Fundamental Analysis
NYSE:WPC - New York Stock Exchange, Inc. - US92936U1097 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to WPC. WPC was compared to 129 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WPC was profitable.
WPC had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 2.47%, WPC is doing good in the industry, outperforming 71.32% of the companies in the same industry.
With a decent Return On Equity value of 5.11%, WPC is doing good in the industry, outperforming 69.77% of the companies in the same industry.
WPC has a Return On Invested Capital of 3.77%. This is in the better half of the industry: WPC outperforms 72.09% 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 3.15%.
The 3 year average ROIC (3.54%) for WPC is below the current ROIC(3.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 5.11% | ||
| ROIC | 3.77% |
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
With an excellent Profit Margin value of 26.66%, WPC belongs to the best of the industry, outperforming 84.50% of the companies in the same industry.
In the last couple of years the Profit Margin of WPC has grown nicely.
With an excellent Operating Margin value of 49.06%, WPC belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
In the last couple of years the Operating Margin of WPC has grown nicely.
The Gross Margin of WPC (88.85%) is better than 90.70% of its industry peers.
WPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.06% | ||
| PM (TTM) | 26.66% | ||
| GM | 88.85% |
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.
WPC has about the same amout of shares outstanding than it did 1 year ago.
WPC has more shares outstanding than it did 5 years ago.
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's Altman-Z score of 0.86 is fine compared to the rest of the industry. WPC outperforms 68.99% of its industry peers.
WPC has a Debt/Equity ratio of 0.94. This is a neutral value indicating WPC is somewhat dependend on debt financing.
The Debt to Equity ratio of WPC (0.94) is better than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.48
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.23 indicates that WPC may have some problems paying its short term obligations.
With a Current ratio value of 0.23, WPC is not doing good in the industry: 89.92% of the companies in the same industry are doing better.
A Quick Ratio of 0.23 indicates that WPC may have some problems paying its short term obligations.
WPC's Quick ratio of 0.23 is on the low side compared to the rest of the industry. WPC is outperformed by 89.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.57%.
The Earnings Per Share has been growing slightly by 1.09% on average over the past years.
Looking at the last year, WPC shows a decrease in Revenue. The Revenue has decreased by -5.89% in the last 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)-41.57%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-20.83%
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%5.15%
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 13.68% on average per year.
WPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y94.03%
EPS Next 2Y44.99%
EPS Next 3Y13.68%
EPS Next 5YN/A
Revenue Next Year5.29%
Revenue Next 2Y5.58%
Revenue Next 3Y4.65%
Revenue Next 5Y7.5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.69, the valuation of WPC can be described as expensive.
Based on the Price/Earnings ratio, WPC is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.32. WPC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 14.43, which indicates a correct valuation of WPC.
95.35% of the companies in the same industry are more expensive than WPC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, WPC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WPC indicates a slightly more expensive valuation: WPC is more expensive than 68.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.46 |
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 13.68% in the coming years.
PEG (NY)0.35
PEG (5Y)30.06
EPS Next 2Y44.99%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.62%, which is a nice return.
WPC's Dividend Yield is comparable with the industry average which is at 6.77.
Compared to an average S&P500 Dividend Yield of 2.40, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
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 180.11% of its income as dividend. This is not a sustainable payout ratio.
DP180.11%
EPS Next 2Y44.99%
EPS Next 3Y13.68%
NYSE:WPC (6/18/2025, 11:47:01 AM)
63.4125
+0.41 (+0.65%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.68%
Inst Owner Change3.57%
Ins Owners0.95%
Ins Owner Change2.99%
Market Cap13.89B
Analysts54.29
Price Target65.28 (2.95%)
Short Float %2.54%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend3.5
Dividend Growth(5Y)-3.5%
DP180.11%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.56%
Min EPS beat(2)-63.31%
Max EPS beat(2)-11.82%
EPS beat(4)1
Avg EPS beat(4)-17.22%
Min EPS beat(4)-63.31%
Max EPS beat(4)10.96%
EPS beat(8)3
Avg EPS beat(8)-2.61%
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)1.78%
Min Revenue beat(2)1.42%
Max Revenue beat(2)2.14%
Revenue beat(4)4
Avg Revenue beat(4)1.56%
Min Revenue beat(4)0.44%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
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)0.47%
PT rev (3m)6.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)62.84%
EPS NY rev (1m)0%
EPS NY rev (3m)59.96%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 14.43 | ||
| P/S | 8.66 | ||
| P/FCF | N/A | ||
| P/OCF | 12.97 | ||
| P/B | 1.66 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 16.46 |
EPS(TTM)1.94
EY3.06%
EPS(NY)4.39
Fwd EY6.93%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)4.89
OCFY7.71%
SpS7.32
BVpS38.19
TBVpS33.74
PEG (NY)0.35
PEG (5Y)30.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 5.11% | ||
| ROCE | 4.77% | ||
| ROIC | 3.77% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 4.32% | ||
| OM | 49.06% | ||
| PM (TTM) | 26.66% | ||
| GM | 88.85% | ||
| 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)4.68%
ROICexgc(5y)4.58%
ROCE(3y)4.49%
ROCE(5y)4.34%
ROICexcg growth 3Y2.52%
ROICexcg growth 5Y2.2%
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 | 0.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.03 | ||
| Cap/Depr | 242.21% | ||
| Cap/Sales | 78.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 0.86 |
F-Score5
WACC7.92%
ROIC/WACC0.48
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)-41.57%
EPS 3Y-6.66%
EPS 5Y1.09%
EPS Q2Q%-20.83%
EPS Next Y94.03%
EPS Next 2Y44.99%
EPS Next 3Y13.68%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y5.94%
Revenue growth 5Y5.13%
Sales Q2Q%5.15%
Revenue Next Year5.29%
Revenue Next 2Y5.58%
Revenue Next 3Y4.65%
Revenue Next 5Y7.5%
EBIT growth 1Y-4.65%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year63.69%
EBIT Next 3Y23.94%
EBIT Next 5Y19.09%
FCF growth 1Y-101.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.94%
OCF growth 3Y25.54%
OCF growth 5Y17.68%