W P Story

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WPC -- USA Stock  

USD 65.88  0.32  0.49%

As many millenniums are excited about real estate space, it is only fair to go over W P Carey. We will analyze why W P investors may still consider a stake in the business. Is the firm current valuation justified for 2020? Here i will cover my perspective on valuation to give W P investors a better outlook on taking a position in the stock.
Published over two months ago
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Is W P Carey well positioned for August economic uncertainties?
This firm has 6.13 B in debt with debt to equity (D/E) ratio of 0.9, which is OK given its current industry classification. The company has a current ratio of 1.84, which is typical for the industry and considered as normal. W P is OVERVALUED at 67.38 per share with modest projections ahead.
We determine the current worth of W P Carey using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of W P Carey based exclusively on its fundamental and basic technical indicators. By analyzing W P's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of W P's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of W P. We calculate exposure to W P's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to W P's related companies.

W P Carey Investment Alerts

W P investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring W P Carey performance across your portfolios.Please check all investment alerts for W P

W P Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare W P value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across W P competition to find correlations between indicators driving the intrinsic value of W P.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for W P, but it might be worth checking our own buy vs. sell analysis

Purchase by Gino Sabatini of 10000 shares of W P

Legal trades by W P insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
W P insider trading alert for perchase of common stock by Gino Sabatini, Managing Director, on 30th of August 2020. This event was filed by W P Carey Inc with SEC on 2020-03-19. SEC Form: Changes in beneficial ownership. Gino Sabatini currently serves as managing director and head of investments of W P Carey [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is W P valued fairly by the market?

W P Carey reported the last year's revenue of 1.21 B. Total Income to common stockholders was 302.78 M with profit before taxes, overhead, and interest of 1.13 B.
 2019 2020 (projected)
Consolidated Income166.7 M179.87 M
Direct Expenses39.55 M34.7 M

Margins Breakdown

W P profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or W P itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of W P profit margins.
24.92
Profit Margin
35.42
Operating Margin
67.93
EBITDA Margin
Operating Margin35.42
EBITDA Margin67.93
Gross Margin90.94
Profit Margin24.92


W P Revenue Per Employee is somewhat stable at the moment. Also, W P Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment.

Will price continue to build-up in August 2020?

Current mean deviation is at 2.21. W P Carey currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.23. However, we do advice investors to further question W P Carey expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on W P

Whereas some other firms within the reit?diversified industry are still a little expensive, even after the recent corrections, W P may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of W P nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to W P.

About Contributor

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 Terms of Use for any information regarding our disclosure principles.

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