WP CAREY INC (WPC) Stock Fundamental Analysis
USA - NYSE:WPC - US92936U1097 - REIT
67.17 USD
-0.28 (-0.42%)
67.17 USD
0 (0%)
Taking everything into account, WPC scores 4 out of 10 in our fundamental rating. WPC was compared to 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WPC had positive earnings in the past year.
In the past year WPC had a positive cash flow from operations.
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 (1.87%) than 61.54% of its industry peers.
WPC's Return On Equity of 4.09% is fine compared to the rest of the industry. WPC outperforms 63.08% of its industry peers.
WPC's Return On Invested Capital of 3.88% is fine compared to the rest of the industry. WPC outperforms 74.62% 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 3.05%.
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 73.08% of its industry peers.
In the last couple of years the Profit Margin of WPC has grown nicely.
WPC has a Operating Margin of 51.14%. This is amongst the best in the industry. WPC outperforms 93.08% of its industry peers.
In the last couple of years the Operating Margin of WPC has grown nicely.
With an excellent Gross Margin value of 89.03%, WPC belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
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
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.
The number of shares outstanding for WPC has been increased compared to 5 years ago.
WPC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that WPC is in the distress zone and has some risk of bankruptcy.
WPC has a Altman-Z score of 0.84. This is in the better half of the industry: WPC outperforms 69.23% of its industry peers.
WPC has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.05, WPC perfoms like the industry average, outperforming 59.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
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.
WPC has a worse Current ratio (0.29) than 86.92% of its industry peers.
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: 86.15% 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
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.
The Revenue has been growing slightly by 0.23% 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)-41.76%
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
The Earnings Per Share is expected to grow by 9.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.12% on average over the next years. This is quite good.
EPS Next Y56.33%
EPS Next 2Y28.79%
EPS Next 3Y9.94%
EPS Next 5YN/A
Revenue Next Year8.04%
Revenue Next 2Y5.67%
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.
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 44.19 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.
Compared to an average S&P500 Price/Earnings ratio of 27.38, WPC is valued quite expensively.
A Price/Forward Earnings ratio of 19.38 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 at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.19 | ||
| Fwd PE | 19.38 |
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 72.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.26 |
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)0.78
PEG (5Y)40.65
EPS Next 2Y28.79%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, WPC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.58, 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 2.38.
| 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
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%
67.17
-0.28 (-0.42%)
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 Cap14.71B
Analysts65.56
Price Target67.73 (0.83%)
Short Float %2.53%
Short Ratio4.49
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)1.22%
PT rev (3m)3.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)2.23%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.19 | ||
| Fwd PE | 19.38 | ||
| P/S | 8.95 | ||
| P/FCF | N/A | ||
| P/OCF | 11.73 | ||
| P/B | 1.79 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 17.26 |
EPS(TTM)1.52
EY2.26%
EPS(NY)3.47
Fwd EY5.16%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)5.72
OCFY8.52%
SpS7.51
BVpS37.5
TBVpS32.99
PEG (NY)0.78
PEG (5Y)40.65
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 | 0.84 |
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)-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 Year8.04%
Revenue Next 2Y5.67%
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%