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.
