WP CAREY INC (WPC) Stock Fundamental Analysis
USA - NYSE:WPC - US92936U1097 - REIT
67.53 USD
+0.67 (+1%)
67.53 USD
0 (0%)
Taking everything into account, WPC scores 4 out of 10 in our fundamental rating. WPC was compared to 129 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 quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years WPC has been profitable.
In the past 5 years WPC always reported a positive cash flow from operatings.
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.
WPC has a Return On Equity of 4.09%. This is in the better half of the industry: WPC outperforms 62.79% of its industry peers.
WPC's Return On Invested Capital of 3.88% is fine compared to the rest of the industry. WPC outperforms 75.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WPC is in line with the industry average of 3.01%.
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 has a better Profit Margin (20.42%) than 72.87% of its industry peers.
WPC's Profit Margin has improved in the last couple of years.
The Operating Margin of WPC (51.14%) is better than 93.02% of its industry peers.
WPC's Operating Margin has improved in the last couple of years.
The Gross Margin of WPC (89.03%) is better than 89.92% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WPC is destroying value.
Compared to 1 year ago, WPC has about the same amount of shares outstanding.
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
WPC has an Altman-Z score of 0.84. This is a bad value and indicates that WPC is not financially healthy and even has some risk of bankruptcy.
WPC's Altman-Z score of 0.84 is fine compared to the rest of the industry. WPC outperforms 71.32% 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.
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 | 0.84 |
ROIC/WACC0.6
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.29 indicates that WPC may have some problems paying its short term obligations.
WPC's Current ratio of 0.29 is on the low side compared to the rest of the industry. WPC is outperformed by 86.82% of its industry peers.
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
WPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.76%.
WPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
Looking at the last year, WPC shows a small growth in Revenue. The Revenue has grown by 0.23% in the last 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
WPC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.46% yearly.
WPC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.12% yearly.
EPS Next Y1.48%
EPS Next 2Y12.31%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year8.04%
Revenue Next 2Y5.67%
Revenue Next 3Y5.13%
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
WPC is valuated quite expensively with a Price/Earnings ratio of 44.43.
The rest of the industry has a similar Price/Earnings ratio as WPC.
WPC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.35.
A Price/Forward Earnings ratio of 25.62 indicates a quite expensive valuation of WPC.
Based on the Price/Forward Earnings ratio, WPC is valued cheaply inside the industry as 80.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WPC to the average of the S&P500 Index (22.86), we can say WPC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.43 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
75.19% of the companies in the same industry are cheaper than WPC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WPC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)29.95
PEG (5Y)40.86
EPS Next 2Y12.31%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
WPC has a Yearly Dividend Yield of 5.43%, which is a nice return.
WPC's Dividend Yield is comparable with the industry average which is at 7.01.
Compared to an average S&P500 Dividend Yield of 2.44, WPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
The dividend of WPC decreases each year by -3.50%.
WPC has been paying a dividend for at least 10 years, so it has 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 2Y12.31%
EPS Next 3Y8.46%
67.53
+0.67 (+1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner Change0.02%
Ins Owners0.96%
Ins Owner Change0.57%
Market Cap14.79B
Analysts66.67
Price Target68.14 (0.9%)
Short Float %2.78%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
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)1.37%
PT rev (3m)4.38%
EPS NQ rev (1m)-4.48%
EPS NQ rev (3m)-28.62%
EPS NY rev (1m)-35.08%
EPS NY rev (3m)-35.08%
Revenue NQ rev (1m)2.4%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.43 | ||
| Fwd PE | 25.62 | ||
| P/S | 8.99 | ||
| P/FCF | N/A | ||
| P/OCF | 11.8 | ||
| P/B | 1.8 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 17.16 |
EPS(TTM)1.52
EY2.25%
EPS(NY)2.64
Fwd EY3.9%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)5.72
OCFY8.48%
SpS7.51
BVpS37.5
TBVpS32.99
PEG (NY)29.95
PEG (5Y)40.86
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
WACC6.5%
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 Y1.48%
EPS Next 2Y12.31%
EPS Next 3Y8.46%
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 3Y5.13%
Revenue Next 5Y9.12%
EBIT growth 1Y8.48%
EBIT growth 3Y7.64%
EBIT growth 5Y7.83%
EBIT Next Year58.03%
EBIT Next 3Y24.53%
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%