NYSE:WPC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,216 net lease properties covering approximately 142 million square feet as of June 30, 2020. More Details


Snowflake Analysis

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has W. P. Carey's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WPC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

WPC

-1.2%

US REITs

-0.8%

US Market


1 Year Return

-27.2%

WPC

-14.9%

US REITs

18.0%

US Market

Return vs Industry: WPC underperformed the US REITs industry which returned -15.9% over the past year.

Return vs Market: WPC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

WPCIndustryMarket
7 Day0.3%-1.2%-0.8%
30 Day4.9%4.2%6.8%
90 Day0.6%1.9%8.9%
1 Year-22.5%-27.2%-11.5%-14.9%20.7%18.0%
3 Year16.6%-2.4%14.6%1.1%41.5%32.1%
5 Year42.5%5.4%39.7%11.8%84.6%63.8%

Price Volatility Vs. Market

How volatile is W. P. Carey's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is W. P. Carey undervalued compared to its fair value and its price relative to the market?

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPC ($66.17) is trading below our estimate of fair value ($114.2)

Significantly Below Fair Value: WPC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WPC is good value based on its PE Ratio (33.5x) compared to the US REITs industry average (34.5x).

PE vs Market: WPC is poor value based on its PE Ratio (33.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WPC is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: WPC is overvalued based on its PB Ratio (1.7x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is W. P. Carey forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPC's forecast earnings growth (4.8% per year) is above the savings rate (2.2%).

Earnings vs Market: WPC's earnings (4.8% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: WPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: WPC's revenue (1.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: WPC's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WPC's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has W. P. Carey performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPC has high quality earnings.

Growing Profit Margin: WPC's current net profit margins (27.8%) are lower than last year (36.7%).


Past Earnings Growth Analysis

Earnings Trend: WPC's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: WPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WPC had negative earnings growth (-15.4%) over the past year, making it difficult to compare to the REITs industry average (1.6%).


Return on Equity

High ROE: WPC's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is W. P. Carey's financial position?


Financial Position Analysis

Short Term Liabilities: WPC's short term assets ($1.0B) exceed its short term liabilities ($638.8M).

Long Term Liabilities: WPC's short term assets ($1.0B) do not cover its long term liabilities ($6.5B).


Debt to Equity History and Analysis

Debt Level: WPC's debt to equity ratio (89.9%) is considered high.

Reducing Debt: WPC's debt to equity ratio has reduced from 121.6% to 89.9% over the past 5 years.

Debt Coverage: WPC's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: WPC's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is W. P. Carey current dividend yield, its reliability and sustainability?

6.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WPC's dividend (6.31%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: WPC's dividend (6.31%) is in the top 25% of dividend payers in the US market (4.67%)


Stability and Growth of Payments

Stable Dividend: WPC's dividends per share have been stable in the past 10 years.

Growing Dividend: WPC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.3%), WPC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WPC's dividends in 3 years are forecast to be covered by earnings (89.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Jason Fox (47 yo)

2.75yrs

Tenure

US$6,918,604

Compensation

Mr. Jason E. Fox has been Chief Executive Officer, President and Director of Corporate Property Associates 18 - Global Incorporated since January 1, 2018. Mr. Fox serves as the Chief Executive Officer of W ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD6.92M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Jason's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jason Fox
CEO & Director2.75yrsUS$6.92m0.24%
$ 28.0m
John Park
President2.75yrsUS$3.57m0.29%
$ 33.3m
Toni Sanzone
MD & CFO4yrsUS$2.31m0.013%
$ 1.5m
Gino Sabatini
MD & Head of Investments3.83yrsUS$2.89m0.38%
$ 43.9m
Brooks Gordon
MD & Head of Asset Management3.58yrsUS$1.65m0.037%
$ 4.3m
John Miller
Chief Investment Officer & MD16.75yrsUS$1.03mno data
Arjun Mahalingam
Chief Accounting Officer4yrsno data0.0038%
$ 442.5k
Susan Hyde
MD, Chief Administrative Officer3yrsno datano data
Peter Sands
Executive Director & Head of Investor Relationsno datano datano data
Edward LaPuma
MD & Head of International Investments18.58yrsUS$1.98mno data
Kathleen Barthmaier
Managing Director of North American Investments Team3.75yrsno datano data
Will Carey
Senior Vice Presidentno datano datano data

3.8yrs

Average Tenure

47yo

Average Age

Experienced Management: WPC's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Fox
CEO & Director2.75yrsUS$6.92m0.24%
$ 28.0m
Mark Alexander
Independent Director4.08yrsUS$269.98k0.012%
$ 1.4m
Christopher Niehaus
Independent Non-Executive Chairman of the Board1.33yrsUS$336.23k0.0098%
$ 1.1m
Axel Hansing
Independent Director9.33yrsUS$249.98k0.0084%
$ 974.5k
Robert Flanagan
Independent Director2.58yrsUS$249.98k0.0040%
$ 461.1k
Margaret Lewis
Independent Director3.08yrsUS$256.23k0.0037%
$ 430.9k
Peter Farrell
Independent Director4.33yrsUS$266.23k0.0066%
$ 766.6k
Nicolaas J. van Ommen
Independent Director9.33yrsUS$249.98k0.012%
$ 1.4m
Jean Hoysradt
Independent Director6.58yrsUS$249.98k0.0076%
$ 888.6k
Tonit Calaway
Director0.083yrno data0.00096%
$ 111.5k

3.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: WPC's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

W. P. Carey Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: W. P. Carey Inc.
  • Ticker: WPC
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: US$11.615b
  • Shares outstanding: 173.91m
  • Website: https://www.wpcarey.com

Number of Employees


Location

  • W. P. Carey Inc.
  • 50 Rockefeller Plaza
  • New York
  • New York
  • 10020
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1998
WPYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1998
0LS8LSE (London Stock Exchange)YesCommon StockGBUSDJan 1998
WPC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1998

Biography

W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,216 ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:03
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.