WELLTOWER INC (WELL) Stock Fundamental Analysis
NYSE:WELL - New York Stock Exchange, Inc. - US95040Q1040 - REIT - Currency: USD
Overall WELL gets a fundamental rating of 5 out of 10. We evaluated WELL against 130 industry peers in the Diversified REITs industry. WELL has only an average score on both its financial health and profitability. WELL shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year WELL was profitable.
WELL had a positive operating cash flow in the past year.
In the past 5 years WELL has always been profitable.
WELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.86%, WELL is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
WELL's Return On Equity of 2.98% is in line compared to the rest of the industry. WELL outperforms 58.46% of its industry peers.
WELL has a Return On Invested Capital of 1.91%. This is in the lower half of the industry: WELL underperforms 67.69% of its industry peers.
WELL had an Average Return On Invested Capital over the past 3 years of 1.79%. This is in line with the industry average of 3.20%.
The 3 year average ROIC (1.79%) for WELL is below the current ROIC(1.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 2.98% | ||
| ROIC | 1.91% |
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
WELL has a Profit Margin of 11.91%. This is in the better half of the industry: WELL outperforms 65.38% of its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
WELL has a worse Operating Margin (14.59%) than 65.38% of its industry peers.
In the last couple of years the Operating Margin of WELL has declined.
WELL's Gross Margin of 40.16% is on the low side compared to the rest of the industry. WELL is outperformed by 83.08% of its industry peers.
WELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.59% | ||
| PM (TTM) | 11.91% | ||
| GM | 40.16% |
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.89%
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.
The number of shares outstanding for WELL has been increased compared to 1 year ago.
Compared to 5 years ago, WELL has more shares outstanding
Compared to 1 year ago, WELL has an improved debt to assets ratio.
2.2 Solvency
WELL has an Altman-Z score of 3.06. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WELL (3.06) is better than 97.69% of its industry peers.
WELL has a debt to FCF ratio of 6.92. This is a slightly negative value and a sign of low solvency as WELL would need 6.92 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 6.92, WELL belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that WELL is not too dependend on debt financing.
WELL's Debt to Equity ratio of 0.49 is amongst the best of the industry. WELL outperforms 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.92 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.24
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
The Current ratio of WELL (1.77) is better than 72.31% of its industry peers.
A Quick Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
WELL's Quick ratio of 1.77 is fine compared to the rest of the industry. WELL outperforms 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 143.75% over the past year.
The earnings per share for WELL have been decreasing by -10.72% on average. This is quite bad
Looking at the last year, WELL shows a very strong growth in Revenue. The Revenue has grown by 20.38%.
Measured over the past years, WELL shows a quite strong growth in Revenue. The Revenue has been growing by 9.31% on average per year.
EPS 1Y (TTM)143.75%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%26.67%
Revenue 1Y (TTM)20.38%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%28.64%
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 20.03% on average per year.
Based on estimates for the next years, WELL will show a quite strong growth in Revenue. The Revenue will grow by 14.88% on average per year.
EPS Next Y20.16%
EPS Next 2Y23.81%
EPS Next 3Y23.31%
EPS Next 5Y20.03%
Revenue Next Year24.91%
Revenue Next 2Y18.28%
Revenue Next 3Y14.15%
Revenue Next 5Y14.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 94.40, the valuation of WELL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as WELL.
When comparing the Price/Earnings ratio of WELL to the average of the S&P500 Index (28.29), we can say WELL is valued expensively.
The Price/Forward Earnings ratio is 78.56, which means the current valuation is very expensive for WELL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WELL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WELL to the average of the S&P500 Index (21.08), we can say WELL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.4 | ||
| Fwd PE | 78.56 |
4.2 Price Multiples
93.08% of the companies in the same industry are cheaper than WELL, based on the Enterprise Value to EBITDA ratio.
WELL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.32 | ||
| EV/EBITDA | 37.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WELL's earnings are expected to grow with 23.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.68
PEG (5Y)N/A
EPS Next 2Y23.81%
EPS Next 3Y23.31%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.89%.
Compared to an average industry Dividend Yield of 28.82, WELL's dividend is way lower than its industry peers. On top of this 90.77% of the companies listed in the same industry pay a better dividend than WELL!
WELL's Dividend Yield is slightly below the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
The dividend of WELL decreases each year by -6.09%.
WELL has paid a dividend for at least 10 years, which is a reliable track record.
WELL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.09%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
162.37% of the earnings are spent on dividend by WELL. This is not a sustainable payout ratio.
DP162.37%
EPS Next 2Y23.81%
EPS Next 3Y23.31%
147.27
+1.64 (+1.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.52%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change0.91%
Market Cap95.49B
Analysts83.2
Price Target170.22 (15.58%)
Short Float %1.68%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.09%
DP162.37%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.65%
Min EPS beat(2)-54.71%
Max EPS beat(2)90%
EPS beat(4)2
Avg EPS beat(4)10.67%
Min EPS beat(4)-54.71%
Max EPS beat(4)90%
EPS beat(8)4
Avg EPS beat(8)-2.16%
EPS beat(12)5
Avg EPS beat(12)-20.65%
EPS beat(16)6
Avg EPS beat(16)-14.07%
Revenue beat(2)2
Avg Revenue beat(2)3.1%
Min Revenue beat(2)2.32%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)7.62%
Revenue beat(8)5
Avg Revenue beat(8)1.14%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)10
Avg Revenue beat(16)1.08%
PT rev (1m)5.96%
PT rev (3m)16.93%
EPS NQ rev (1m)-2.77%
EPS NQ rev (3m)-4.87%
EPS NY rev (1m)2.29%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)7.12%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)8.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.4 | ||
| Fwd PE | 78.56 | ||
| P/S | 11.95 | ||
| P/FCF | 42.32 | ||
| P/OCF | 42.32 | ||
| P/B | 2.99 | ||
| P/tB | 3 | ||
| EV/EBITDA | 37.81 |
EPS(TTM)1.56
EY1.06%
EPS(NY)1.87
Fwd EY1.27%
FCF(TTM)3.48
FCFY2.36%
OCF(TTM)3.48
OCFY2.36%
SpS12.32
BVpS49.28
TBVpS49.05
PEG (NY)4.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 2.98% | ||
| ROCE | 2.42% | ||
| ROIC | 1.91% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 2.07% | ||
| OM | 14.59% | ||
| PM (TTM) | 11.91% | ||
| GM | 40.16% | ||
| FCFM | 28.24% |
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%
ROICexcg growth 3Y4.53%
ROICexcg growth 5Y-7.23%
ROICexc growth 3Y4.48%
ROICexc growth 5Y-7.26%
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.89%
PM growth 5Y-13.12%
GM growth 3Y-1.59%
GM growth 5Y-3.55%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.92 | ||
| Debt/EBITDA | 5.49 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | 79.3% | ||
| Profit Quality | 237.1% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 3.06 |
F-Score6
WACC8.13%
ROIC/WACC0.24
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)549.7%
Profit Quality(5y)433.6%
High Growth Momentum
Growth
EPS 1Y (TTM)143.75%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%26.67%
EPS Next Y20.16%
EPS Next 2Y23.81%
EPS Next 3Y23.31%
EPS Next 5Y20.03%
Revenue 1Y (TTM)20.38%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%28.64%
Revenue Next Year24.91%
Revenue Next 2Y18.28%
Revenue Next 3Y14.15%
Revenue Next 5Y14.88%
EBIT growth 1Y17.52%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year195.07%
EBIT Next 3Y55.25%
EBIT Next 5Y31.83%
FCF growth 1Y40.86%
FCF growth 3Y20.95%
FCF growth 5Y8%
OCF growth 1Y40.86%
OCF growth 3Y20.95%
OCF growth 5Y8%