WPC

W. P. CareyNYSE:WPC Stock Report

Market Cap

US$14.4b

7D

-1.6%

1Y

12.7%

Updated

16 Sep, 2021

Data

Company Financials +
WPC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends6/6

WPC Overview

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 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020.

W. P. Carey Competitors

Price History & Performance

Summary of all time highs, changes and price drops for W. P. Carey
Historical stock prices
Current Share PriceUS$76.27
52 Week HighUS$60.68
52 Week LowUS$82.37
Beta0.75
1 Month Change-3.43%
3 Month Change0.61%
1 Year Change12.68%
3 Year Change15.56%
5 Year Change13.57%
Change since IPO244.72%

Recent News & Updates

Aug 26

W. P. Carey: 3 Reasons Why Now Is One Of The Best Times Ever To Buy

WPC has recently pulled back from 52-week highs on news of management aggressively issuing new equity. We believe this creates an attractive buying opportunity for investors. We detail 3 reasons why in this article.

Aug 14

W. P. Carey: 5 Pros, 5 Cons, 1 Conclusion

W. P. Carey is a well-diversified REIT that is often revered by income investors for its big growing dividend (it currently yields 5.4%). However, the shares are not without risks. In this report, we review 5 W. P. Carey pros, 5 cons, and then conclude with our opinion on investing.

Aug 04

W. P. Carey: To Cut The Dividend Or Not

W. P. Carey is quite beloved by authors on Seeking Alpha. Yet in reality they are neither mature nor stabilized and their payout ratio remains dangerously high. This article examines how they got where they are, how they may avoid a dividend cut, and their potential for growth. This article shows why I have a hard time deciding whether they will be an OK investment or a great one. The risks are not zero either.

Jul 26

W. P. Carey: Slight Overvaluation But Manageable Risks

At its current price levels, W. P. Carey Inc. (WPC) represents a quality REIT business that is slightly overvalued. Although a healthy return on investment can still be expected from this quality stock. Finally, a yield spread analysis also suggests manageable short-term risk at the current price level.

Shareholder Returns

WPCUS REITsUS Market
7D-1.6%-0.7%-0.6%
1Y12.7%30.8%33.7%

Return vs Industry: WPC underperformed the US REITs industry which returned 28.4% over the past year.

Return vs Market: WPC underperformed the US Market which returned 30.7% over the past year.

Price Volatility

Is WPC's price volatile compared to industry and market?
WPC volatility
WPC Beta0.75
Industry Beta0.82
Market Beta1

Stable Share Price: WPC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: WPC's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1973188Jason Foxhttps://www.wpcarey.com

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 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.

W. P. Carey Fundamentals Summary

How do W. P. Carey's earnings and revenue compare to its market cap?
WPC fundamental statistics
Market CapUS$14.45b
Earnings (TTM)US$455.85m
Revenue (TTM)US$1.27b

31.7x

P/E Ratio

11.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WPC income statement (TTM)
RevenueUS$1.27b
Cost of RevenueUS$52.29m
Gross ProfitUS$1.22b
ExpensesUS$763.74m
EarningsUS$455.85m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.57
Gross Margin95.89%
Net Profit Margin35.84%
Debt/Equity Ratio93.4%

How did WPC perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

91%

Payout Ratio

Valuation

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

45.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPC ($76.27) is trading below our estimate of fair value ($132.41)

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 (31.7x) compared to the US REITs industry average (47.4x).

PE vs Market: WPC is poor value based on its PE Ratio (31.7x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: WPC is poor value based on its PEG Ratio (7.7x)


Price to Book Ratio

PB vs Industry: WPC's PB Ratio (2x) is in line with the US REITs industry average.


Future Growth

How is W. P. Carey forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPC's forecast earnings growth (4.1% per year) is above the savings rate (2%).

Earnings vs Market: WPC's earnings (4.1% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: WPC's revenue (4.4% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: WPC's revenue (4.4% 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 (9.3%).


Past Performance

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

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPC has high quality earnings.

Growing Profit Margin: WPC's current net profit margins (35.8%) are higher than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: WPC's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: WPC's earnings growth over the past year (33.3%) exceeds its 5-year average (13.1% per year).

Earnings vs Industry: WPC earnings growth over the past year (33.3%) exceeded the REITs industry 3.9%.


Return on Equity

High ROE: WPC's Return on Equity (6.2%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: WPC's short term assets ($935.8M) exceed its short term liabilities ($767.4M).

Long Term Liabilities: WPC's short term assets ($935.8M) do not cover its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: WPC's debt to equity ratio (93.4%) is considered high.

Reducing Debt: WPC's debt to equity ratio has reduced from 134.1% to 93.4% over the past 5 years.

Debt Coverage: WPC's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: WPC's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Dividend

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

5.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WPC's dividend (5.51%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: WPC's dividend (5.51%) is in the top 25% of dividend payers in the US market (3.6%)


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 (90.8%), 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 (87.8% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Jason Fox (48 yo)

3.67yrs

Tenure

US$7,405,905

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 ($USD7.41M) is below average for companies of similar size in the US market ($USD11.26M).

Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WPC's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: WPC's board of directors are considered experienced (4.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.9%.


Top Shareholders

Company Information

W. P. Carey Inc.'s 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$14.449b
  • Shares outstanding: 189.45m
  • Website: https://www.wpcarey.com

Number of Employees


Location

  • W. P. Carey Inc.
  • One Manhattan West
  • 395 9th Avenue,
  • New York
  • New York
  • 10001
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 04:58
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.