Macroaxis provides impartial trading advice on W P Carey, which should be used to supplement the current
analysts and expert consensus on the company. Our recommendation engine assesses the company's growth potential solely from the viewpoint of an investor's current risk tolerance and investment horizon.
The firm's dividends can offer insight into the current value of the stock. The company's expected dividend income for the next year is approximately $3.18 per share. Stocks that pay dividends often display more stable price movements during market downturns compared to those that do not. The regular income from dividends can provide a cushion against potential capital losses during periods of market volatility.
However, it's crucial to understand that dividend payments are not guaranteed. Companies like W P Carey can reduce or halt dividend payments if they encounter financial difficulties or prioritize other cash uses. Furthermore, stocks that pay dividends may not provide the same level of capital appreciation as those that do not, particularly in high-growth sectors.
Extended review
W P Carey (WPC), a REIT-Diversified industry player, boasts a strong fundamental profile. The company has a market capitalization of
15.55B and a robust cash flow from operations of
1B, providing a solid financial backbone. WPC also shows a reasonable PE Ratio of 20.43, which suggests the stock is not overvalued. On the liabilities side, the company's debt to equity ratio stands at a healthy 0.88%, indicating a balanced capital structure. However, investors should be aware of the company's probability of bankruptcy at 42.17%, which could be a risk factor. Despite this, the company's five-year return of 5.67% demonstrates a stable performance over the long term.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include W P income statement, its balance sheet, and the statement of cash flows. Potential W P investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although W P investors may use each financial statement separately, they are all related. The changes in W P's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on W P's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of W P
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of W P performance into the future periods or doing a reasonable stock valuation. The intrinsic value of W P shares is the value that is considered the true value of the share. If
the intrinsic value of WPC is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares W P. Please read more on our
fundamental analysis page.
How effective is W P in utilizing its assets?
W P Carey reports assets on its Balance Sheet. It represents the amount of WPC resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, W P aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Diversified REITs space. To get a better handle on how balance sheet or income statements item affect WPC volatility, please check the breakdown of all its
fundamentals.
Are W P Earnings Expected to grow?
The
future earnings power of W P involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of W P factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. W P
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of WPC
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of W P earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. W P dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. WPC one year expected dividend income is about USD2.58 per share.
At present, W P's
Dividend Yield is projected to increase slightly based on the last few years of reporting.
Investing in dividend-paying stocks, such as W P Carey is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in W P must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for W P. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
W P Gross Profit
W P Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing W P previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show W P Gross Profit growth over the last 10 years. Please check W P's
gross profit and other
fundamental indicators for more details.
Going after WPC Financials
Institutional investors typically avoid acquiring a high percentage of W P stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of WPC is distributed among investors.
Ownership Allocation
W P Carey owns a total of 213.9 Million outstanding shares. Over half of W P Carey outstanding shares are owned by
institutional investors. These institutional investors are typically referred to corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Therefore, these
institutional investors. class="underlinedLink" href="/invest/ratio/WPC/Shares-Owned-by-Institutions">institutions are subject to different rules and regulation than regular investors in W P Carey. Please watch out for any change in the
institutional holdings of W P Carey as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors34.3% | | Institutions64.6% |
| Retail Investors | 34.3 |
| Insiders | 1.1 |
| Institutions | 64.6 |
| 2020 | 2021 | 2022 | 2023 (projected) |
Consolidated Income | 465.95 M | 410.12 M | 598.48 M | 493.49 M | Direct Expenses | 44.07 M | 47.9 M | 50.75 M | 42.01 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. W P has an asset utilization ratio of 8.17 percent. This indicates that the company is making $0.0817 for each dollar of assets. An increasing asset utilization means that W P Carey is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 180.02 Million | 15.01 |
| Goodwill | 1.02 Billion | 84.99 |
W P Carey (WPC), a prominent player in the Equity Real Estate Investment Trusts (REITs) sector, has shown some promising
fundamental indicators that suggest stability in August. The company's forward dividend rate stands at 4.28, with a payout ratio of 1.1972, indicating a strong commitment to returning capital to shareholders. The firm's five-year return is 5.67%, demonstrating consistent performance over the medium term. W P Carey's balance sheet reveals a healthy financial position, with total assets amounting to
$18.1 billion and long-term investments of
$15.8 billion. However, the company has a high level of long-term debt at $7.9 billion, which is a point of concern. The firm's beta of 0.79 suggests lower volatility compared to the broader market, which could appeal to risk-averse investors. The company's quarterly revenue growth of 0.241 and a profit margin of 0.47% indicate a robust operational performance. The PE ratio of 20.427 is in line with industry averages, suggesting the stock is fairly valued. However, the negative net working capital of $625.2 million and retained earnings total equity of -$2.5 billion suggest some financial strain. In conclusion, while W P Carey shows some strong fundamental indicators, investors should also consider the company's high debt levels and negative net working capital.
Is WPC showing appearance of lower volatility?
W P Carey Inc. (WPC) recently noted a variance of 1.29, suggesting a potential shift towards lower volatility. This could signify a more stable trading environment for investors, marked by less dramatic price fluctuations. Therefore, investors who value stability might find WPC an increasingly appealing option. However, it's vital to closely monitor the stock's performance, as market conditions can change swiftly. W P Carey displays very low volatility, with a skewness of -0.23 and kurtosis of -0.38. Nevertheless, we recommend investors to further examine W P Carey's technical indicators to ensure that all market information is available and reliable. Comprehending different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure W P's stock risk against market volatility during both bullish and bearish trends. The elevated level of volatility that accompanies bear markets can directly influence
W P's stock price, while causing stress for investors as they watch the value of their shares decline. This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices drop.
Our Final Take On W P
When is the right time to buy or sell W P Carey? Buying stocks such as W P isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
On the whole, as of the 28th of July 2023, our concluding 90 days advice on the firm is
Buy. We believe W P is
undervalued with
below average probability of financial unrest for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of W P Carey. Please refer to our
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