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. While WPC has a great profitability rating, there are quite some concerns on its financial health. WPC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WPC was profitable.
WPC had a positive operating cash flow in the past year.
WPC had positive earnings in each of the past 5 years.
Each year in the past 5 years WPC had a positive operating cash flow.
1.2 Ratios
WPC has a better Return On Assets (2.47%) than 71.54% of its industry peers.
WPC's Return On Equity of 5.11% is fine compared to the rest of the industry. WPC outperforms 70.00% of its industry peers.
The Return On Invested Capital of WPC (3.77%) is better than 71.54% 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 3.16%.
The last Return On Invested Capital (3.77%) for WPC is above the 3 year average (3.54%), which is a sign of increasing profitability.
| 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
WPC has a Profit Margin of 26.66%. This is amongst the best in the industry. WPC outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of WPC has grown nicely.
Looking at the Operating Margin, with a value of 49.06%, WPC belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
WPC's Operating Margin has improved in the last couple of years.
The Gross Margin of WPC (88.85%) is better than 90.77% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
WPC has an Altman-Z score of 0.86. This is a bad value and indicates that WPC is not financially healthy and even has some risk of bankruptcy.
WPC has a Altman-Z score of 0.86. This is in the better half of the industry: WPC outperforms 70.00% 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.
With a decent Debt to Equity ratio value of 0.94, WPC is doing good in the industry, outperforming 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.48
WACC7.9%
2.3 Liquidity
A Current Ratio of 0.23 indicates that WPC may have some problems paying its short term obligations.
WPC's Current ratio of 0.23 is on the low side compared to the rest of the industry. WPC is outperformed by 90.00% 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: 89.23% 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
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.57%.
WPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
The Revenue has decreased by -5.89% in the past year.
WPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
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 7.50% on average over the next years.
EPS Next Y70.11%
EPS Next 2Y35.1%
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
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
Based on the Price/Earnings ratio of 32.59, the valuation of WPC can be described as expensive.
WPC's Price/Earnings ratio is a bit cheaper when compared to the industry. WPC is cheaper than 60.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, WPC is valued at the same level.
A Price/Forward Earnings ratio of 16.58 indicates a correct valuation of WPC.
WPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WPC is cheaper than 95.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. WPC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPC is valued a bit more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.51 |
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.
WPC's earnings are expected to grow with 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)29.98
EPS Next 2Y35.1%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.72%, which is a nice return.
Compared to an average industry Dividend Yield of 6.64, WPC has a dividend in line with its industry peers.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
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 2Y35.1%
EPS Next 3Y13.68%
63.23
-0.09 (-0.14%)
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 Change3.58%
Ins Owners0.95%
Ins Owner Change2.99%
Market Cap13.85B
Analysts54.29
Price Target65.28 (3.24%)
Short Float %2.4%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
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)2.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)51.49%
EPS NY rev (1m)-12.33%
EPS NY rev (3m)31.18%
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 | 32.59 | ||
| Fwd PE | 16.58 | ||
| P/S | 8.64 | ||
| P/FCF | N/A | ||
| P/OCF | 12.93 | ||
| P/B | 1.66 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 16.51 |
EPS(TTM)1.94
EY3.07%
EPS(NY)3.81
Fwd EY6.03%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)4.89
OCFY7.73%
SpS7.32
BVpS38.19
TBVpS33.74
PEG (NY)0.46
PEG (5Y)29.98
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
WACC7.9%
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 Y70.11%
EPS Next 2Y35.1%
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%