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 130 industry peers in the Diversified REITs industry. WPC scores excellent on profitability, but 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
Looking at the Return On Assets, with a value of 1.87%, WPC is in the better half of the industry, outperforming 63.85% of the companies in the same industry.
WPC's Return On Equity of 4.09% is fine compared to the rest of the industry. WPC outperforms 66.15% of its industry peers.
WPC has a better Return On Invested Capital (3.88%) than 73.85% of its industry peers.
WPC had an Average Return On Invested Capital over the past 3 years of 3.54%. This is in line with the industry average of 3.15%.
The 3 year average ROIC (3.54%) for WPC is below the current ROIC(3.88%), 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
WPC's Profit Margin of 20.42% is fine compared to the rest of the industry. WPC outperforms 76.15% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
WPC has a better Operating Margin (51.14%) than 92.31% 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 90.77% 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 | 51.14% | ||
| 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
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.
Compared to 5 years ago, WPC has more shares outstanding
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.
The Altman-Z score of WPC (0.81) is better than 68.46% 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 has a Debt to Equity ratio of 1.05. This is comparable to the rest of the industry: WPC outperforms 58.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.59
WACC6.57%
2.3 Liquidity
A Current Ratio of 0.29 indicates that WPC may have some problems paying 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 85.38% 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.
WPC's Quick ratio of 0.29 is on the low side compared to the rest of the industry. WPC is outperformed by 84.62% 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.
Looking at the last year, WPC shows a small growth in Revenue. The Revenue has grown by 0.23% in the last year.
The Revenue has been growing slightly by 5.13% on average over the past years.
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
WPC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.94% yearly.
Based on estimates for the next years, WPC will show a small growth in Revenue. The Revenue will grow by 7.50% 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 5Y7.5%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.28 indicates a quite expensive valuation of WPC.
WPC's Price/Earnings ratio is in line with the industry average.
WPC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.54.
A Price/Forward Earnings ratio of 18.97 indicates a rather expensive valuation of WPC.
Based on the Price/Forward Earnings ratio, WPC is valued cheaply inside the industry as 93.85% of the companies are valued more expensively.
WPC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.28 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPC is valued a bit more expensive than 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.83 |
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.
The excellent profitability rating of WPC may justify a higher PE ratio.
PEG (NY)0.77
PEG (5Y)39.8
EPS Next 2Y28.79%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.45%, WPC is a good candidate for dividend investing.
WPC's Dividend Yield is comparable with the industry average which is at 6.79.
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 | 5.45% |
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
WPC pays out 230.94% of its income as dividend. This is not a sustainable payout ratio.
DP230.94%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
65.78
+0.95 (+1.47%)
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 Change-0.61%
Ins Owners0.95%
Ins Owner Change2.02%
Market Cap14.40B
Analysts65.56
Price Target66.91 (1.72%)
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)0.16%
PT rev (3m)1.91%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)32.84%
EPS NY rev (1m)-8.1%
EPS NY rev (3m)20.56%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.28 | ||
| Fwd PE | 18.97 | ||
| P/S | 8.76 | ||
| P/FCF | N/A | ||
| P/OCF | 11.49 | ||
| P/B | 1.75 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)1.52
EY2.31%
EPS(NY)3.47
Fwd EY5.27%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)5.73
OCFY8.7%
SpS7.51
BVpS37.5
TBVpS33
PEG (NY)0.77
PEG (5Y)39.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 4.09% | ||
| ROCE | 4.91% | ||
| ROIC | 3.88% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 4.41% | ||
| 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
WACC6.57%
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)-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 5Y7.5%
EBIT growth 1Y8.48%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year62.28%
EBIT Next 3Y24.25%
EBIT Next 5Y19.09%
FCF growth 1Y75.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.34%
OCF growth 3Y25.54%
OCF growth 5Y17.68%