W. P. Carey Inc. REIT (WPC)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $615 million in annual free cash flow (3.8% yield on market cap)
• Attractive 5.1% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($42) with negative 75% margin of safety—limited downside protection
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

W. P. Carey Inc. REIT is a mid-cap real estate company valued at $16.1 billion. The business generates $1.7 billion in annual revenue with a 8.7% net margin and $615 million in free cash flow. From a quality standpoint, W. shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is trading at a premium 34.9x earnings, with trades above its Graham Number with a negative 75% margin. Growth dynamics show revenue growing at 9.4% and profit growth of 215.4%. The 5.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $615 million in annual free cash flow (3.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 35x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer