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.
