WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
184.97 USD
-6.1 (-3.19%)
184.97 USD
0 (0%)
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 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. While showing a medium growth rate, WELL is valued expensive at the moment.
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.
Each year in the past 5 years WELL had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.61%, WELL perfoms like the industry average, outperforming 57.03% of the companies in the same industry.
WELL's Return On Equity of 2.48% is in line compared to the rest of the industry. WELL outperforms 53.13% 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.
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 3.05%.
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
WELL has a Profit Margin (9.69%) which is in line with its industry peers.
WELL's Profit Margin has declined in the last couple of years.
WELL has a Operating Margin of 16.41%. This is in the lower half of the industry: WELL underperforms 63.28% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 40.85%, WELL is doing worse than 84.38% of the companies in the same industry.
WELL's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WELL 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.
The debt/assets ratio for WELL has been reduced compared to a year ago.
2.2 Solvency
WELL has an Altman-Z score of 3.84. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.84, WELL belongs to the top of the industry, outperforming 99.22% 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.
With an excellent Debt to FCF ratio value of 6.09, WELL belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that WELL is not too dependend on debt financing.
WELL has a Debt to Equity ratio of 0.44. This is amongst the best in the industry. WELL outperforms 92.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.28
WACC8.13%
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.
The Current ratio of WELL (2.77) is better 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.
Looking at the Quick ratio, with a value of 2.77, WELL belongs to the top 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
WELL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.61%.
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%.
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)-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
The Earnings Per Share is expected to grow by 22.85% on average over the next years. This is a very strong growth
Based on estimates for the next years, WELL will show a quite strong growth in Revenue. The Revenue will grow by 18.37% on average per year.
EPS Next Y18.81%
EPS Next 2Y28.42%
EPS Next 3Y23.9%
EPS Next 5Y22.85%
Revenue Next Year32.54%
Revenue Next 2Y24.88%
Revenue Next 3Y20.99%
Revenue Next 5Y18.37%
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
The Price/Earnings ratio is 127.57, which means the current valuation is very expensive for WELL.
60.94% of the companies in the same industry are cheaper than WELL, based on the Price/Earnings ratio.
WELL is valuated expensively when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 71.90, WELL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as WELL.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, WELL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127.57 | ||
| Fwd PE | 71.9 |
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 67.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.56 | ||
| EV/EBITDA | 37.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as WELL's earnings are expected to grow with 23.90% in the coming years.
PEG (NY)6.78
PEG (5Y)N/A
EPS Next 2Y28.42%
EPS Next 3Y23.9%
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 6.59. 86.72% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.31, 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 2Y28.42%
EPS Next 3Y23.9%
184.97
-6.1 (-3.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.4%
Inst Owner Change1.55%
Ins Owners0.03%
Ins Owner Change-0.02%
Market Cap126.95B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.96
Price Target214.56 (16%)
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)10.96%
PT rev (3m)17.17%
EPS NQ rev (1m)1.21%
EPS NQ rev (3m)6.72%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)4.72%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127.57 | ||
| Fwd PE | 71.9 | ||
| P/S | 12.81 | ||
| P/FCF | 45.56 | ||
| P/OCF | 45.56 | ||
| P/B | 3.28 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 37.63 |
EPS(TTM)1.45
EY0.78%
EPS(NY)2.57
Fwd EY1.39%
FCF(TTM)4.06
FCFY2.19%
OCF(TTM)4.06
OCFY2.19%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.78
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 | 3.84 |
F-Score6
WACC8.13%
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 Y18.81%
EPS Next 2Y28.42%
EPS Next 3Y23.9%
EPS Next 5Y22.85%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year32.54%
Revenue Next 2Y24.88%
Revenue Next 3Y20.99%
Revenue Next 5Y18.37%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year202.03%
EBIT Next 3Y64.05%
EBIT Next 5Y38.63%
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 127.57 and the Price/Book (PB) ratio is 3.28.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.