Quick Update for WPC Investors

It's been a great evening session for W. P. Carey investors, who saw their shares rise 2.4% to a price of $64.87 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.

W. P. Carey Has Attractive P/B and P/E Ratios:

Celebrating its 50th anniversary, W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,413 net lease properties covering approximately 171 million square feet and a portfolio of 86 self-storage operating properties, pro forma for the Spin-Off of NLOP, as of September 30, 2023. 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 company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 25.55 and an average price to book (P/B) ratio of 2.1. In contrast, W. P. Carey has a trailing 12 month P/E ratio of 17.8 and a P/B ratio of 1.52.

W. P. Carey has moved -18.0% over the last year compared to 15.0% for the S&P 500 — a difference of -33.0%. W. P. Carey has a 52 week high of $84.17 and a 52 week low of $50.3.

The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:

2018 2019 2020 2021 2022 2023
Revenue (MM) $886 $1,233 $1,209 $1,332 $1,479 $1,732
Revenue Growth n/a 39.18% -1.9% 10.11% 11.08% 17.07%
Operating Margins 50% 27% 37% 33% 42% 47%
Net Margins 48% 25% 39% 31% 41% 45%
Net Income (MM) $424 $307 $466 $410 $599 $774
Net Interest Expense (MM) $178 $233 $210 $197 $219 $287
Depreciation & Amort. (MM) $298 $460 $456 $491 $520 $605
Diluted Shares (MM) 118 171 175 183 200 252
Free Cash Flow (MM) $509 $812 $802 $926 $1,004 $1,114
Long Term Debt (MM) $6,379 $6,054 $6,696 $6,792 $7,878 $8,288
Net Debt / EBITDA 8.36 7.39 7.15 7.13 6.73 5.76

W. P. Carey has growing revenues and no capital expenditures, a pattern of improving cash flows, and decent operating margins with a stable trend. However, the firm suffers from negative expected EPS Growth and a highly leveraged balance sheet.

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.