WP CAREY INC (WPC) Stock Fundamental Analysis
NYSE:WPC - New York Stock Exchange, Inc. - US92936U1097 - REIT - Currency: USD
Overall WPC gets a fundamental rating of 4 out of 10. We evaluated WPC against 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years WPC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WPC (2.47%) is better than 71.32% of its industry peers.
WPC's Return On Equity of 5.11% is fine compared to the rest of the industry. WPC outperforms 69.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.77%, WPC is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
Looking at the Profit Margin, with a value of 26.66%, WPC belongs to the top 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.
WPC has a Operating Margin of 49.06%. This is amongst the best in the industry. WPC outperforms 90.70% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
With an excellent Gross Margin value of 88.85%, WPC belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WPC 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
WPC has an Altman-Z score of 0.82. This is a bad value and indicates that WPC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WPC (0.82) is better than 68.99% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that WPC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, WPC is in the better half of the industry, outperforming 62.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.56
WACC6.78%
2.3 Liquidity
WPC has a Current Ratio of 0.23. 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 has a Current ratio of 0.23. This is amonst the worse of the industry: WPC underperforms 90.70% of its industry peers.
WPC has a Quick Ratio of 0.23. This is a bad value and indicates that WPC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The earnings per share for WPC have decreased strongly by -41.57% in the last year.
WPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
WPC shows a decrease in Revenue. In the last year, the revenue decreased by -5.89%.
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
The Earnings Per Share is expected to grow by 13.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.65% on average over the next years.
EPS Next Y94.03%
EPS Next 2Y44.99%
EPS Next 3Y13.68%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y5.01%
Revenue Next 3Y4.65%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.63, which means the current valuation is very expensive for WPC.
WPC's Price/Earnings is on the same level as the industry average.
WPC is valuated rather expensively when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.97, WPC is valued correctly.
96.12% of the companies in the same industry are more expensive than WPC, based on the Price/Forward Earnings ratio.
WPC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPC is valued a bit more expensive than 65.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.99 |
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.
WPC has an outstanding profitability rating, which may justify a higher PE ratio.
WPC's earnings are expected to grow with 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)29.1
EPS Next 2Y44.99%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, WPC is a good candidate for dividend investing.
WPC's Dividend Yield is comparable with the industry average which is at 6.61.
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 | 5.81% |
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
180.11% of the earnings are spent on dividend by WPC. This is not a sustainable payout ratio.
DP180.11%
EPS Next 2Y44.99%
EPS Next 3Y13.68%
61.37
+1.15 (+1.91%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners70.17%
Inst Owner Change3.28%
Ins Owners1%
Ins Owner Change2.97%
Market Cap13.44B
Analysts54.29
Price Target64.97 (5.87%)
Short Float %2.44%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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)2.25%
PT rev (3m)8.15%
EPS NQ rev (1m)51.49%
EPS NQ rev (3m)67.31%
EPS NY rev (1m)49.63%
EPS NY rev (3m)62.88%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 13.97 | ||
| P/S | 8.38 | ||
| P/FCF | N/A | ||
| P/OCF | 12.55 | ||
| P/B | 1.61 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 15.99 |
EPS(TTM)1.94
EY3.16%
EPS(NY)4.39
Fwd EY7.16%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)4.89
OCFY7.97%
SpS7.32
BVpS38.19
TBVpS33.74
PEG (NY)0.34
PEG (5Y)29.1
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 | 0.82 |
F-Score5
WACC6.78%
ROIC/WACC0.56
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 Year4.27%
Revenue Next 2Y5.01%
Revenue Next 3Y4.65%
Revenue Next 5YN/A
EBIT growth 1Y-4.65%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year65.23%
EBIT Next 3Y23.97%
EBIT Next 5YN/A
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%