WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
181.96 USD
-4.04 (-2.17%)
181.96 USD
0 (0%)
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. WELL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WELL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- WELL had positive earnings in the past year.
- WELL had a positive operating cash flow in the past year.
- WELL had positive earnings in each of the past 5 years.
- WELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WELL has a Return On Assets (1.61%) which is in line with its industry peers.
- The Return On Equity of WELL (2.48%) is comparable to the rest of the industry.
- The Return On Invested Capital of WELL (2.28%) is comparable to the rest of the industry.
- 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 3.07%.
- 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.
- In the last couple of years the Profit Margin of WELL has declined.
- WELL has a Operating Margin of 16.41%. This is in the lower half of the industry: WELL underperforms 63.20% of its industry peers.
- WELL's Operating Margin has declined in the last couple of years.
- WELL's Gross Margin of 40.85% is on the low side compared to the rest of the industry. WELL is outperformed by 83.20% 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.
- Compared to 1 year ago, WELL has more shares outstanding
- 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 3.86 indicates that WELL is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.86, WELL belongs to the top of the industry, outperforming 99.20% of the companies in the same industry.
- WELL has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as WELL would need 6.09 years to pay back of all of its debts.
- WELL has a better Debt to FCF ratio (6.09) than 96.80% 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.
- Looking at the Debt to Equity ratio, with a value of 0.44, WELL belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.28
WACC8.24%
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's Current ratio of 2.77 is amongst the best of the industry. WELL outperforms 90.40% of its industry peers.
- A Quick Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.77, WELL belongs to the top of the industry, outperforming 90.40% 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.
- The earnings per share for WELL have been decreasing by -10.72% on average. This is quite bad
- WELL shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.28%.
- WELL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.31% yearly.
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
- WELL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.85% yearly.
- The Revenue is expected to grow by 18.91% on average over the next years. This is quite good.
EPS Next Y16.25%
EPS Next 2Y26.05%
EPS Next 3Y23.49%
EPS Next 5Y22.85%
Revenue Next Year35.01%
Revenue Next 2Y25.33%
Revenue Next 3Y20.73%
Revenue Next 5Y18.91%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 125.49, which means the current valuation is very expensive for WELL.
- 61.60% of the companies in the same industry are cheaper than WELL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. WELL is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 73.41, which means the current valuation is very expensive for WELL.
- WELL's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 125.49 | ||
| Fwd PE | 73.41 |
4.2 Price Multiples
- WELL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WELL is more expensive than 94.40% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than the industry average as 68.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.82 | ||
| EV/EBITDA | 37.82 |
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 23.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.72
PEG (5Y)N/A
EPS Next 2Y26.05%
EPS Next 3Y23.49%
5. Dividend
5.1 Amount
- WELL has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 1.57, WELL pays less dividend than the industry average, which is at 6.59. 88.80% of the companies listed in the same industry pay a better dividend than WELL!
- Compared to an average S&P500 Dividend Yield of 1.83, WELL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 3Y23.49%
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.
Can you provide the valuation status for WELLTOWER INC?
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.
Can you provide the PE and PB ratios for WELL stock?
The Price/Earnings (PE) ratio for WELLTOWER INC (WELL) is 125.49 and the Price/Book (PB) ratio is 3.22.
Can you provide the dividend sustainability for WELL stock?
The dividend rating of WELLTOWER INC (WELL) is 3 / 10 and the dividend payout ratio is 186.03%.