WP CAREY INC (WPC) Stock Fundamental Analysis
USA - NYSE:WPC - US92936U1097 - REIT
68.7 USD
+0.24 (+0.35%)
68.7 USD
0 (0%)
WPC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. WPC has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, WPC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WPC was profitable.
WPC had a positive operating cash flow in the past year.
Each year in the past 5 years WPC has been profitable.
Each year in the past 5 years WPC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.87%, WPC is doing good in the industry, outperforming 61.24% of the companies in the same industry.
The Return On Equity of WPC (4.09%) is better than 62.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.88%, WPC is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WPC is in line with the industry average of 3.04%.
The last Return On Invested Capital (3.88%) for WPC is above the 3 year average (3.54%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 20.42%, WPC is in the better half of the industry, outperforming 72.87% of the companies in the same industry.
WPC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 51.14%, WPC belongs to the best of the industry, outperforming 93.02% 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 90.70% 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.
WPC has more shares outstanding than it did 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 0.86, we must say that WPC is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.86, WPC is doing good in the industry, outperforming 68.99% of the companies in the same industry.
WPC has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
WPC has a Debt to Equity ratio (1.05) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.6
WACC6.5%
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: 86.82% 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.
WPC's Quick ratio of 0.29 is on the low side compared to the rest of the industry. WPC is outperformed by 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for WPC have decreased strongly by -41.76% in the last year.
The Earnings Per Share has been growing slightly by 1.09% on average over the past years.
WPC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.23%.
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 quite strong growth in Revenue. The Revenue will grow by 9.12% 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 5Y9.12%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 45.20 indicates a quite expensive valuation of WPC.
Compared to the rest of the industry, the Price/Earnings ratio of WPC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. WPC is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 19.82, the valuation of WPC can be described as rather expensive.
93.02% of the companies in the same industry are more expensive than WPC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. WPC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.2 | ||
| Fwd PE | 19.82 |
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 72.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.43 |
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.
PEG (NY)0.8
PEG (5Y)41.57
EPS Next 2Y28.79%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.38%, which is a nice return.
WPC's Dividend Yield is comparable with the industry average which is at 6.63.
WPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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
230.94% of the earnings are spent on dividend by WPC. This is not a sustainable payout ratio.
DP230.94%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
68.7
+0.24 (+0.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.51%
Inst Owner Change0.97%
Ins Owners0.96%
Ins Owner Change0.37%
Market Cap15.04B
Analysts65.56
Price Target67.22 (-2.15%)
Short Float %2.53%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)0.46%
PT rev (3m)2.97%
EPS NQ rev (1m)-25.28%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.43%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.2 | ||
| Fwd PE | 19.82 | ||
| P/S | 9.15 | ||
| P/FCF | N/A | ||
| P/OCF | 12 | ||
| P/B | 1.83 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 17.43 |
EPS(TTM)1.52
EY2.21%
EPS(NY)3.47
Fwd EY5.05%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)5.72
OCFY8.33%
SpS7.51
BVpS37.5
TBVpS32.99
PEG (NY)0.8
PEG (5Y)41.57
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%
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 | 0.86 |
F-Score5
WACC6.5%
ROIC/WACC0.6
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 5Y9.12%
EBIT growth 1Y8.48%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year62.28%
EBIT Next 3Y24.25%
EBIT Next 5Y20.8%
FCF growth 1Y75.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.34%
OCF growth 3Y25.54%
OCF growth 5Y17.68%