WP CAREY INC (WPC)
US92936U1097 - REIT
Overall WPC gets a fundamental rating of 5 out of 10. We evaluated WPC against 127 industry peers in the Diversified REITs industry. While WPC has a great profitability rating, there are some minor concerns on its financial health. WPC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years WPC has always been profitable.
WPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WPC has a better Return On Assets (3.22%) than 79.20% of its industry peers.
WPC's Return On Equity of 6.62% is fine compared to the rest of the industry. WPC outperforms 79.20% of its industry peers.
WPC has a Return On Invested Capital of 3.60%. This is in the better half of the industry: WPC outperforms 69.60% of its industry peers.
WPC had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 3.07%.
The 3 year average ROIC (3.44%) for WPC is below the current ROIC(3.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 6.62% | ||
| ROIC | 3.6% |
ROA(3y)3.3%
ROA(5y)3.03%
ROE(3y)6.74%
ROE(5y)6.25%
ROIC(3y)3.44%
ROIC(5y)3.32%
1.3 Margins
With an excellent Profit Margin value of 34.83%, WPC belongs to the best of the industry, outperforming 87.20% of the companies in the same industry.
In the last couple of years the Profit Margin of WPC has declined.
Looking at the Operating Margin, with a value of 47.25%, WPC belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
WPC's Operating Margin has been stable in the last couple of years.
WPC has a Gross Margin of 87.66%. This is amongst the best in the industry. WPC outperforms 90.40% 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 | 47.25% | ||
| PM (TTM) | 34.83% | ||
| GM | 87.66% |
OM growth 3Y0.72%
OM growth 5Y0.43%
PM growth 3Y2.6%
PM growth 5Y-2.61%
GM growth 3Y-1.03%
GM growth 5Y-0.28%
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 more shares outstanding than it did 1 year ago.
The number of shares outstanding for WPC has been increased compared to 5 years ago.
The debt/assets ratio for WPC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC's Altman-Z score of 0.94 is fine compared to the rest of the industry. WPC outperforms 65.60% of its industry peers.
WPC has a debt to FCF ratio of 8.73. This is a slightly negative value and a sign of low solvency as WPC would need 8.73 years to pay back of all of its debts.
WPC has a better Debt to FCF ratio (8.73) than 91.20% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that WPC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.94, WPC is doing good in the industry, outperforming 63.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.58
WACC6.23%
2.3 Liquidity
WPC has a Current Ratio of 1.47. This is a normal value and indicates that WPC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WPC (1.47) is better than 62.40% of its industry peers.
A Quick Ratio of 1.46 indicates that WPC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.46, WPC is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for WPC have decreased strongly by -51.67% in the last year.
Measured over the past years, WPC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.22% on average per year.
Looking at the last year, WPC shows a decrease in Revenue. The Revenue has decreased by -1.57% in the last year.
The Revenue has been growing by 14.48% on average over the past years. This is quite good.
EPS 1Y (TTM)-51.67%
EPS 3Y15.35%
EPS 5Y-1.22%
EPS Q2Q%-52.21%
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y12.92%
Revenue growth 5Y14.48%
Sales Q2Q%-13.9%
3.2 Future
Based on estimates for the next years, WPC will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.26% on average per year.
Based on estimates for the next years, WPC will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y-38.91%
EPS Next 2Y-25.46%
EPS Next 3Y-14.26%
EPS Next 5YN/A
Revenue Next Year-12.55%
Revenue Next 2Y-3.83%
Revenue Next 3Y-2.21%
Revenue Next 5Y4.75%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.25, which indicates a rather expensive current valuation of WPC.
WPC's Price/Earnings ratio is a bit cheaper when compared to the industry. WPC is cheaper than 78.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.52, WPC is valued a bit cheaper.
WPC is valuated quite expensively with a Price/Forward Earnings ratio of 28.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPC indicates a rather cheap valuation: WPC is cheaper than 82.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, WPC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 28.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WPC.
WPC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WPC is cheaper than 87.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 15.75 |
4.3 Compensation for Growth
WPC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as WPC's earnings are expected to decrease with -14.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.46%
EPS Next 3Y-14.26%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.59%, which is a nice return.
WPC's Dividend Yield is a higher than the industry average which is at 5.47.
Compared to an average S&P500 Dividend Yield of 2.26, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
5.2 History
The dividend of WPC has a limited annual growth rate of 5.69%.
WPC has been paying a dividend for at least 10 years, so it has a reliable track record.
WPC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.69%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
WPC pays out 147.20% of its income as dividend. This is not a sustainable payout ratio.
WPC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP147.2%
EPS Next 2Y-25.46%
EPS Next 3Y-14.26%
WP CAREY INC
NYSE:WPC (9/13/2024, 8:04:00 PM)
Premarket: 63.27 -0.01 (-0.02%)63.28
+1.07 (+1.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 28.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 6.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 47.25% | ||
| PM (TTM) | 34.83% | ||
| GM | 87.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-51.67%
EPS 3Y15.35%
EPS 5Y
EPS Q2Q%
EPS Next Y-38.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y12.92%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y