WELLTOWER INC (WELL) Stock Fundamental Analysis
NYSE:WELL - New York Stock Exchange, Inc. - US95040Q1040 - REIT
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 129 industry peers in the Diversified REITs industry. While WELL has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years WELL had a positive operating cash flow.
1.2 Ratios
WELL has a better Return On Assets (1.87%) than 65.87% of its industry peers.
WELL has a Return On Equity of 3.02%. This is comparable to the rest of the industry: WELL outperforms 59.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.91%, WELL is doing worse than 70.63% of the companies in the same industry.
WELL had an Average Return On Invested Capital over the past 3 years of 1.75%. This is in line with the industry average of 3.11%.
The last Return On Invested Capital (1.91%) for WELL is above the 3 year average (1.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 3.02% | ||
| ROIC | 1.91% |
ROA(3y)0.7%
ROA(5y)1.76%
ROE(3y)1.31%
ROE(5y)3.6%
ROIC(3y)1.75%
ROIC(5y)1.99%
1.3 Margins
Looking at the Profit Margin, with a value of 12.22%, WELL is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
In the last couple of years the Profit Margin of WELL has declined.
With a Operating Margin value of 15.18%, WELL is not doing good in the industry: 65.87% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WELL has declined.
WELL has a worse Gross Margin (40.86%) than 86.51% of its industry peers.
WELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.18% | ||
| PM (TTM) | 12.22% | ||
| GM | 40.86% |
OM growth 3Y0.57%
OM growth 5Y-8.21%
PM growth 3Y-37.76%
PM growth 5Y-20.5%
GM growth 3Y-2.58%
GM growth 5Y-3.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WELL is destroying value.
WELL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WELL has been increased compared to 5 years ago.
WELL has a better debt/assets ratio than last year.
2.2 Solvency
WELL has an Altman-Z score of 2.76. This is not the best score and indicates that WELL is in the grey zone with still only limited risk for bankruptcy at the moment.
WELL has a better Altman-Z score (2.76) than 96.83% of its industry peers.
The Debt to FCF ratio of WELL is 7.67, which is on the high side as it means it would take WELL, 7.67 years of fcf income to pay off all of its debts.
WELL's Debt to FCF ratio of 7.67 is amongst the best of the industry. WELL outperforms 93.65% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that WELL is somewhat dependend on debt financing.
WELL's Debt to Equity ratio of 0.52 is amongst the best of the industry. WELL outperforms 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.23
WACC8.32%
2.3 Liquidity
WELL has a Current Ratio of 2.48. This indicates that WELL is financially healthy and has no problem in meeting its short term obligations.
WELL has a better Current ratio (2.48) than 80.95% of its industry peers.
WELL has a Quick Ratio of 2.48. This indicates that WELL is financially healthy and has no problem in meeting its short term obligations.
WELL has a Quick ratio of 2.48. This is amongst the best in the industry. WELL outperforms 81.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
WELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 216.67%, which is quite impressive.
Measured over the past years, WELL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.54% on average per year.
WELL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.91%.
WELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.15% yearly.
EPS 1Y (TTM)216.67%
EPS 3Y-35%
EPS 5Y-20.54%
EPS Q2Q%204.17%
Revenue 1Y (TTM)16.91%
Revenue growth 3Y12.95%
Revenue growth 5Y7.15%
Sales Q2Q%23.69%
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 38.87% 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 13.34% on average per year.
EPS Next Y154.68%
EPS Next 2Y71.11%
EPS Next 3Y51.66%
EPS Next 5Y38.87%
Revenue Next Year19.13%
Revenue Next 2Y17.27%
Revenue Next 3Y14.8%
Revenue Next 5Y13.34%
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
WELL is valuated quite expensively with a Price/Earnings ratio of 87.94.
WELL's Price/Earnings is on the same level as the industry average.
WELL is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 71.34 indicates a quite expensive valuation of WELL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WELL is on the same level as its industry peers.
WELL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.94 | ||
| Fwd PE | 71.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued more expensive than 96.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WELL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.26 | ||
| EV/EBITDA | 35.06 |
4.3 Compensation for Growth
WELL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WELL's earnings are expected to grow with 51.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y71.11%
EPS Next 3Y51.66%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 2.08%.
With a Dividend Yield of 2.08, WELL pays less dividend than the industry average, which is at 18.51. 84.13% of the companies listed in the same industry pay a better dividend than WELL!
WELL's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
The dividend of WELL decreases each year by -7.71%.
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)-7.71%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
WELL pays out 160.04% of its income as dividend. This is not a sustainable payout ratio.
DP160.04%
EPS Next 2Y71.11%
EPS Next 3Y51.66%
WELLTOWER INC
NYSE:WELL (1/21/2025, 8:04:00 PM)
After market: 133.67 0 (0%)133.67
+4.33 (+3.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.5%
Inst Owner Change0.04%
Ins Owners0.04%
Ins Owner Change-0.3%
Market Cap83.23B
Analysts79.2
Price Target145.58 (8.91%)
Short Float %1.52%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend2.39
Dividend Growth(5Y)-7.71%
DP160.04%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)55.33%
Min EPS beat(2)20.66%
Max EPS beat(2)90%
EPS beat(4)2
Avg EPS beat(4)13.22%
Min EPS beat(4)-44.51%
Max EPS beat(4)90%
EPS beat(8)4
Avg EPS beat(8)-9.09%
EPS beat(12)5
Avg EPS beat(12)-17.34%
EPS beat(16)7
Avg EPS beat(16)-3.7%
Revenue beat(2)1
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-5.1%
Max Revenue beat(2)2.32%
Revenue beat(4)2
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)7.62%
Revenue beat(8)4
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)9
Avg Revenue beat(16)0.64%
PT rev (1m)1.46%
PT rev (3m)16.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)0%
EPS NY rev (3m)15.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.94 | ||
| Fwd PE | 71.34 | ||
| P/S | 11.11 | ||
| P/FCF | 40.26 | ||
| P/OCF | 40.26 | ||
| P/B | 2.74 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 35.06 |
EPS(TTM)1.52
EY1.14%
EPS(NY)1.87
Fwd EY1.4%
FCF(TTM)3.32
FCFY2.48%
OCF(TTM)3.32
OCFY2.48%
SpS12.03
BVpS48.71
TBVpS48.61
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 3.02% | ||
| ROCE | 2.42% | ||
| ROIC | 1.91% | ||
| ROICexc | 2.07% | ||
| ROICexgc | 2.08% | ||
| OM | 15.18% | ||
| PM (TTM) | 12.22% | ||
| GM | 40.86% | ||
| FCFM | 27.61% |
ROA(3y)0.7%
ROA(5y)1.76%
ROE(3y)1.31%
ROE(5y)3.6%
ROIC(3y)1.75%
ROIC(5y)1.99%
ROICexc(3y)1.79%
ROICexc(5y)2.04%
ROICexgc(3y)1.8%
ROICexgc(5y)2.04%
ROCE(3y)2.21%
ROCE(5y)2.52%
ROICexcg growth 3Y2.55%
ROICexcg growth 5Y-7.86%
ROICexc growth 3Y2.57%
ROICexc growth 5Y-7.85%
OM growth 3Y0.57%
OM growth 5Y-8.21%
PM growth 3Y-37.76%
PM growth 5Y-20.5%
GM growth 3Y-2.58%
GM growth 5Y-3.22%
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 7.67 | ||
| Debt/EBITDA | 5.82 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.91 | ||
| Cash Conversion | 75.89% | ||
| Profit Quality | 225.82% | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z | 2.76 |
F-Score7
WACC8.32%
ROIC/WACC0.23
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)597.15%
Profit Quality(5y)411.11%
High Growth Momentum
Growth
EPS 1Y (TTM)216.67%
EPS 3Y-35%
EPS 5Y-20.54%
EPS Q2Q%204.17%
EPS Next Y154.68%
EPS Next 2Y71.11%
EPS Next 3Y51.66%
EPS Next 5Y38.87%
Revenue 1Y (TTM)16.91%
Revenue growth 3Y12.95%
Revenue growth 5Y7.15%
Sales Q2Q%23.69%
Revenue Next Year19.13%
Revenue Next 2Y17.27%
Revenue Next 3Y14.8%
Revenue Next 5Y13.34%
EBIT growth 1Y25.99%
EBIT growth 3Y13.6%
EBIT growth 5Y-1.65%
EBIT Next Year210.28%
EBIT Next 3Y60.29%
EBIT Next 5Y33.55%
FCF growth 1Y52.19%
FCF growth 3Y5.48%
FCF growth 5Y0.23%
OCF growth 1Y52.19%
OCF growth 3Y5.48%
OCF growth 5Y0.23%