WPC Investors - Our Quick Report For You.

Now trading at a price of $72.98, W. P. Carey has moved -0.1% so far today.

W. P. Carey shares moved -12.9% over the last 52 weeks, with a high of $89.63 and a low of $67.77. During this time, the stock lagged the S&P 500 index by -12.0%. As of January 2022, the company's 50-day average price is $78.18. Celebrating its 50th anniversary, W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $24 billion and a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,449 net lease properties covering approximately 176 million square feet and a portfolio of 84 self-storage operating properties, as of December 31, 2022. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U. The large-cap Real Estate company has 193 full time employees and is based in New York, NY. W. P. Carey has returned a 5.8% dividend yield over the last 12 months.

Good EPS Growth with a Highly Leveraged Balance Sheet:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $1,233 $1,209 $1,332 $1,479
Revenue Growth n/a -1.9% 10.11% 11.08%
Operating Margins 43.3% 45.8% 46.9% 47.3%
Operating Margins Growth n/a 5.77% 2.4% 0.85%
Earnings Per Share $1.78 $2.6 $2.24 $2.99
EPS Growth n/a 46.07% -13.85% 33.48%
Diluted Shares (MM) 171 175 183 214
Free Cash Flow (MM) $812 $802 $926 $1,004
FCF Growth n/a -1.3% 15.59% 8.32%
Net Debt / EBITDA 6.42 5.93 5.96 5.71

W. P. Carey Is Reasonably Valued:

Compared to the Real Estate sector's average of 24.81, W. P. Carey has a trailing twelve month P/E ratio of 24.4 and, according to its EPS guidance of 3.89, an expected P/E ratio of 18.8. W. P. Carey's PEG ratio is 1.54 based on its 16.9% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 9.9%, because the growth rate implied by W. P. Carey's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 2.65, which suggests that the company's shares are actually overvalued.

However, W. P. Carey is likely undervalued in terms of its equity because its P/B ratio is 1.7 compared to its sector average of 2.24. The company's shares are currently trading 52.0% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.4 * 42.701) = $48.02

W. P. Carey Benefits From Positive Market Indicators:

8 analysts are following W. P. Carey and have set target prices ranging from $79.0 to $88.0 per share. On average, they have given the company a rating of buy. At the current price of $72.98, WPC is trading -13.38% away from its average analyst target price of $84.25 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 3.5% of the company's shares are tied to short positions. Institutions own 64.6% of W. P. Carey's shares, while the insider ownership rate stands at 1.1%. The biggest shareholder is the Vanguard Group, Inc. with a 14% stake in the company worth approximately $2,138,986,609.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.