WP CAREY INC (WPC)
US92936U1097 - REIT
WPC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 126 industry peers in the Diversified REITs industry. While WPC belongs to the best of the industry regarding profitability, there are concerns on its financial health. WPC is valued correctly, but it does not seem to be growing.
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.
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
With an excellent Return On Assets value of 3.94%, WPC belongs to the best of the industry, outperforming 84.55% of the companies in the same industry.
With an excellent Return On Equity value of 8.14%, WPC belongs to the best of the industry, outperforming 82.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.75%, WPC is in the better half of the industry, outperforming 78.86% 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 2.95%.
The 3 year average ROIC (3.44%) for WPC is below the current ROIC(3.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 8.14% | ||
| ROIC | 3.75% |
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
WPC's Profit Margin of 40.68% is amongst the best of the industry. WPC outperforms 89.43% of its industry peers.
In the last couple of years the Profit Margin of WPC has declined.
WPC's Operating Margin of 46.79% is amongst the best of the industry. WPC outperforms 89.43% of its industry peers.
WPC's Operating Margin has been stable in the last couple of years.
The Gross Margin of WPC (87.26%) is better than 90.24% of its industry peers.
WPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.79% | ||
| PM (TTM) | 40.68% | ||
| GM | 87.26% |
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.
The number of shares outstanding for WPC has been increased compared to 1 year ago.
Compared to 5 years ago, WPC has more shares outstanding
WPC has a worse debt/assets ratio than last year.
2.2 Solvency
WPC has an Altman-Z score of 0.79. 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 0.79. This is in the better half of the industry: WPC outperforms 65.85% 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 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.53
WACC7.02%
2.3 Liquidity
A Current Ratio of 0.83 indicates that WPC may have some problems paying its short term obligations.
WPC has a worse Current ratio (0.83) than 67.48% of its industry peers.
WPC has a Quick Ratio of 0.83. 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 0.78, WPC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.53%.
The Earnings Per Share has been decreasing by -1.22% on average over the past years.
WPC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.73%.
Measured over the past years, WPC shows a quite strong growth in Revenue. The Revenue has been growing by 14.48% on average per year.
EPS 1Y (TTM)-16.53%
EPS 3Y15.35%
EPS 5Y-1.22%
EPS growth Q2Q-48.84%
Revenue 1Y (TTM)17.73%
Revenue growth 3Y12.92%
Revenue growth 5Y14.48%
Revenue growth Q2Q2.44%
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 -20.37% on average per year.
Based on estimates for the next years, WPC will show a decrease in Revenue. The Revenue will decrease by -1.41% on average per year.
EPS Next Y-41.4%
EPS Next 2Y-20.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.34%
Revenue Next 2Y-1.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.88 indicates a correct valuation of WPC.
WPC's Price/Earnings ratio is rather cheap when compared to the industry. WPC is cheaper than 90.24% of the companies in the same industry.
WPC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.80.
Based on the Price/Forward Earnings ratio of 23.69, the valuation of WPC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPC indicates a rather cheap valuation: WPC is cheaper than 82.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, WPC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 23.69 |
4.2 Price Multiples
WPC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.81 |
4.3 Compensation for Growth
The excellent profitability rating of WPC may justify a higher PE ratio.
WPC's earnings are expected to decrease with -20.37% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 6.23%, which is a nice return.
WPC's Dividend Yield is a higher than the industry average which is at 5.97.
Compared to an average S&P500 Dividend Yield of 2.40, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.69%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
WPC pays out 129.39% 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.
DP129.39%
EPS Next 2Y-20.37%
EPS Next 3YN/A
WP CAREY INC
NYSE:WPC (4/19/2024, 9:21:58 AM)
55.39
+0.74 (+1.35%)
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 Cap12.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 13.88 | ||
| Fwd PE | 23.69 | ||
| 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 | 3.94% | ||
| ROE | 8.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 46.79% | ||
| PM (TTM) | 40.68% | ||
| GM | 87.26% | ||
| 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 Turnover0.1
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 | 0.83 | ||
| Quick Ratio | 0.78 | ||
| 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)
Growth
EPS 1Y (TTM)-16.53%
EPS 3Y15.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y-41.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.73%
Revenue growth 3Y12.92%
Revenue growth 5Y
Revenue growth 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