WP CAREY INC (WPC) Stock Fundamental Analysis
USA - NYSE:WPC - US92936U1097 - REIT
66.26 USD
-0.23 (-0.35%)
66.26 USD
0 (0%)
Taking everything into account, WPC scores 4 out of 10 in our fundamental rating. WPC was compared to 127 industry peers in the Diversified REITs industry. While WPC has a great profitability rating, there are quite some concerns on its financial health. WPC is quite expensive at the moment. It does show 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 (1.87%) is better than 61.42% of its industry peers.
WPC's Return On Equity of 4.09% is fine compared to the rest of the industry. WPC outperforms 61.42% of its industry peers.
WPC has a Return On Invested Capital of 3.88%. This is in the better half of the industry: WPC outperforms 74.02% 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 72.44% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 51.14%, WPC belongs to the top of the industry, outperforming 92.91% of the companies in the same industry.
WPC's Operating Margin has improved in the last couple of years.
WPC's Gross Margin of 89.03% is amongst the best of the industry. WPC outperforms 89.76% 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
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.
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
WPC has an Altman-Z score of 0.83. This is a bad value and indicates that WPC is not financially healthy and even has some risk of bankruptcy.
WPC has a better Altman-Z score (0.83) than 67.72% 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.
Looking at the Debt to Equity ratio, with a value of 1.05, WPC is in line with its industry, outperforming 58.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.59
WACC6.55%
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.
With a Current ratio value of 0.29, WPC is not doing good in the industry: 87.40% of the companies in the same industry are doing better.
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: 86.61% 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.
WPC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.59%.
The Revenue has been growing slightly by 5.13% on average over the past years.
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
WPC is valuated quite expensively with a Price/Earnings ratio of 40.16.
WPC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.67. WPC is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 24.85, which indicates a rather expensive current valuation of WPC.
Based on the Price/Forward Earnings ratio, WPC is valued cheaply inside the industry as 84.25% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 31.86. WPC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.16 | ||
| Fwd PE | 24.85 |
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 72.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WPC may justify a higher PE ratio.
PEG (NY)20.42
PEG (5Y)36.94
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 6.24.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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
230.94% of the earnings are spent on dividend by WPC. This is not a sustainable payout ratio.
DP230.94%
EPS Next 2Y12.95%
EPS Next 3Y9.81%
66.26
-0.23 (-0.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner Change-0.26%
Ins Owners0.96%
Ins Owner Change0.57%
Market Cap14.51B
Revenue(TTM)1.68B
Net Income(TTM)335.76M
Analysts66.67
Price Target69.45 (4.81%)
Short Float %3.14%
Short Ratio6.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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)2.55%
PT rev (3m)6.23%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)-27.51%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-34.78%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)1.75%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.16 | ||
| Fwd PE | 24.85 | ||
| P/S | 8.83 | ||
| P/FCF | N/A | ||
| P/OCF | 11.57 | ||
| P/B | 1.77 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 17.1 |
EPS(TTM)1.65
EY2.49%
EPS(NY)2.67
Fwd EY4.02%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)5.72
OCFY8.64%
SpS7.51
BVpS37.5
TBVpS32.99
PEG (NY)20.42
PEG (5Y)36.94
Graham Number37.31
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%
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-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 | 0.83 |
F-Score5
WACC6.55%
ROIC/WACC0.59
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 1Y8.48%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year58.03%
EBIT Next 3Y24.53%
EBIT Next 5Y21.28%
FCF growth 1Y75.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.34%
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 40.16 and the Price/Book (PB) ratio is 1.77.
How financially healthy is WP CAREY INC?
The financial health rating of WP CAREY INC (WPC) is 1 / 10.