WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
201.92 USD
-1.28 (-0.63%)
201.92 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 128 industry peers in the Diversified REITs industry. WELL has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, WELL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WELL was profitable.
In the past year WELL had a positive cash flow from operations.
WELL had positive earnings in each of the past 5 years.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
WELL has a better Return On Assets (1.61%) than 60.16% of its industry peers.
WELL's Return On Equity of 2.48% is in line compared to the rest of the industry. WELL outperforms 56.25% of its industry peers.
With a Return On Invested Capital value of 2.28%, WELL perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WELL is in line with the industry average of 3.06%.
The last Return On Invested Capital (2.28%) for WELL is above the 3 year average (1.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 2.48% | ||
| ROIC | 2.28% |
ROA(3y)1%
ROA(5y)1.4%
ROE(3y)1.67%
ROE(5y)2.61%
ROIC(3y)1.79%
ROIC(5y)1.78%
1.3 Margins
The Profit Margin of WELL (9.69%) is comparable to the rest of the industry.
WELL's Profit Margin has declined in the last couple of years.
The Operating Margin of WELL (16.41%) is worse than 63.28% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
WELL has a worse Gross Margin (40.85%) than 84.38% of its industry peers.
In the last couple of years the Gross Margin of WELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.41% | ||
| PM (TTM) | 9.69% | ||
| GM | 40.85% |
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.88%
PM growth 5Y-13.12%
GM growth 3Y-1.59%
GM growth 5Y-3.55%
2. Health
2.1 Basic Checks
WELL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WELL has more shares outstanding than it did 1 year ago.
WELL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WELL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.17 indicates that WELL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.17, WELL belongs to the best of the industry, outperforming 99.22% of the companies in the same industry.
The Debt to FCF ratio of WELL is 6.09, which is on the high side as it means it would take WELL, 6.09 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WELL (6.09) is better than 96.88% of its industry peers.
WELL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
WELL's Debt to Equity ratio of 0.44 is amongst the best of the industry. WELL outperforms 92.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 4.17 |
ROIC/WACC0.28
WACC8.14%
2.3 Liquidity
WELL has a Current Ratio of 2.77. This indicates that WELL is financially healthy and has no problem in meeting its short term obligations.
WELL has a better Current ratio (2.77) than 89.84% of its industry peers.
A Quick Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.77, WELL belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
The earnings per share for WELL have decreased by -4.61% in the last year.
WELL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.72% yearly.
Looking at the last year, WELL shows a very strong growth in Revenue. The Revenue has grown by 32.28%.
The Revenue has been growing by 9.31% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.61%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%-43.84%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
3.2 Future
Based on estimates for the next years, WELL will show a very strong growth in Earnings Per Share. The EPS will grow by 22.85% on average per year.
WELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.92% yearly.
EPS Next Y21.76%
EPS Next 2Y26.05%
EPS Next 3Y24.4%
EPS Next 5Y22.85%
Revenue Next Year33.39%
Revenue Next 2Y26.26%
Revenue Next 3Y21.72%
Revenue Next 5Y17.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 139.26, WELL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WELL.
WELL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.37.
The Price/Forward Earnings ratio is 81.47, which means the current valuation is very expensive for WELL.
The rest of the industry has a similar Price/Forward Earnings ratio as WELL.
When comparing the Price/Forward Earnings ratio of WELL to the average of the S&P500 Index (36.20), we can say WELL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.26 | ||
| Fwd PE | 81.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued expensively inside the industry as 95.31% of the companies are valued cheaper.
WELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WELL is cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.73 | ||
| EV/EBITDA | 40.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WELL does not grow enough to justify the current Price/Earnings ratio.
WELL's earnings are expected to grow with 24.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.4
PEG (5Y)N/A
EPS Next 2Y26.05%
EPS Next 3Y24.4%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.63, WELL pays less dividend than the industry average, which is at 6.34. 88.28% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.32, WELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of WELL decreases each year by -6.10%.
WELL has been paying a dividend for at least 10 years, so it has a reliable track record.
WELL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.1%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
WELL pays out 186.03% of its income as dividend. This is not a sustainable payout ratio.
DP186.03%
EPS Next 2Y26.05%
EPS Next 3Y24.4%
201.92
-1.28 (-0.63%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change1.53%
Ins Owners0.03%
Ins Owner Change-0.04%
Market Cap138.58B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.22
Price Target203.34 (0.7%)
Short Float %1.81%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.1%
DP186.03%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.13%
Min EPS beat(2)-23.07%
Max EPS beat(2)-3.19%
EPS beat(4)0
Avg EPS beat(4)-20.55%
Min EPS beat(4)-54.71%
Max EPS beat(4)-1.25%
EPS beat(8)2
Avg EPS beat(8)-3.67%
EPS beat(12)4
Avg EPS beat(12)-12.91%
EPS beat(16)5
Avg EPS beat(16)-18.15%
Revenue beat(2)2
Avg Revenue beat(2)2.2%
Min Revenue beat(2)1.81%
Max Revenue beat(2)2.59%
Revenue beat(4)4
Avg Revenue beat(4)2.39%
Min Revenue beat(4)1.3%
Max Revenue beat(4)3.87%
Revenue beat(8)6
Avg Revenue beat(8)1.58%
Revenue beat(12)8
Avg Revenue beat(12)1.13%
Revenue beat(16)11
Avg Revenue beat(16)1.2%
PT rev (1m)5.15%
PT rev (3m)11.92%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)5.23%
EPS NY rev (1m)-2.31%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)3.8%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)3.65%
Revenue NY rev (3m)4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.26 | ||
| Fwd PE | 81.47 | ||
| P/S | 13.99 | ||
| P/FCF | 49.73 | ||
| P/OCF | 49.73 | ||
| P/B | 3.58 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 40.82 |
EPS(TTM)1.45
EY0.72%
EPS(NY)2.48
Fwd EY1.23%
FCF(TTM)4.06
FCFY2.01%
OCF(TTM)4.06
OCFY2.01%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.4
PEG (5Y)N/A
Graham Number42.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 2.48% | ||
| ROCE | 2.89% | ||
| ROIC | 2.28% | ||
| ROICexc | 2.6% | ||
| ROICexgc | 2.61% | ||
| OM | 16.41% | ||
| PM (TTM) | 9.69% | ||
| GM | 40.85% | ||
| FCFM | 28.12% |
ROA(3y)1%
ROA(5y)1.4%
ROE(3y)1.67%
ROE(5y)2.61%
ROIC(3y)1.79%
ROIC(5y)1.78%
ROICexc(3y)1.88%
ROICexc(5y)1.85%
ROICexgc(3y)1.88%
ROICexgc(5y)1.85%
ROCE(3y)2.26%
ROCE(5y)2.25%
ROICexgc growth 3Y4.53%
ROICexgc growth 5Y-7.23%
ROICexc growth 3Y4.49%
ROICexc growth 5Y-7.26%
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.88%
PM growth 5Y-13.12%
GM growth 3Y-1.59%
GM growth 5Y-3.55%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 4.65 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.82 | ||
| Cash Conversion | 76.47% | ||
| Profit Quality | 290.15% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 4.17 |
F-Score6
WACC8.14%
ROIC/WACC0.28
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)549.67%
Profit Quality(5y)433.57%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.61%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%-43.84%
EPS Next Y21.76%
EPS Next 2Y26.05%
EPS Next 3Y24.4%
EPS Next 5Y22.85%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year33.39%
Revenue Next 2Y26.26%
Revenue Next 3Y21.72%
Revenue Next 5Y17.92%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year197.78%
EBIT Next 3Y60.95%
EBIT Next 5Y37.1%
FCF growth 1Y87.68%
FCF growth 3Y20.95%
FCF growth 5Y8%
OCF growth 1Y87.68%
OCF growth 3Y20.95%
OCF growth 5Y8%
WELLTOWER INC / WELL FAQ
What is the ChartMill fundamental rating of WELLTOWER INC (WELL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WELL.
What is the valuation status of WELLTOWER INC (WELL) stock?
ChartMill assigns a valuation rating of 2 / 10 to WELLTOWER INC (WELL). This can be considered as Overvalued.
What is the profitability of WELL stock?
WELLTOWER INC (WELL) has a profitability rating of 4 / 10.
What is the valuation of WELLTOWER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WELLTOWER INC (WELL) is 139.26 and the Price/Book (PB) ratio is 3.58.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.