WELLTOWER INC (WELL)
US95040Q1040 - REIT
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 130 industry peers in the Diversified REITs industry. While WELL has a great health rating, its profitability is only average at the moment. WELL is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years WELL has been profitable.
WELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.87%, WELL is doing good in the industry, outperforming 64.84% of the companies in the same industry.
WELL has a Return On Equity of 3.02%. This is comparable to the rest of the industry: WELL outperforms 58.59% of its industry peers.
WELL has a worse Return On Invested Capital (1.91%) than 69.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WELL is in line with the industry average of 3.08%.
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
The Profit Margin of WELL (12.22%) is better than 62.50% of its industry peers.
WELL's Profit Margin has declined in the last couple of years.
WELL's Operating Margin of 15.18% is on the low side compared to the rest of the industry. WELL is outperformed by 64.84% of its industry peers.
In the last couple of years the Operating Margin of WELL has declined.
With a Gross Margin value of 40.86%, WELL is not doing good in the industry: 86.72% of the companies in the same industry are doing better.
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
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.
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 2.58. 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 (2.58) than 96.09% of its industry peers.
WELL has a debt to FCF ratio of 7.67. This is a slightly negative value and a sign of low solvency as WELL would need 7.67 years to pay back of all of its debts.
WELL's Debt to FCF ratio of 7.67 is amongst the best of the industry. WELL outperforms 93.75% of its industry peers.
WELL has a Debt/Equity ratio of 0.52. This is a neutral value indicating WELL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, WELL belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.23
WACC8.23%
2.3 Liquidity
A Current Ratio of 2.48 indicates that WELL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.48, WELL belongs to the top of the industry, outperforming 80.47% of the companies in the same industry.
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 better Quick ratio (2.48) than 81.25% 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.
WELL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.54% yearly.
Looking at the last year, WELL shows a quite strong growth in Revenue. The Revenue has grown by 16.91% in the last year.
The Revenue has been growing slightly by 7.15% on average over the past years.
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
The Earnings Per Share is expected to grow by 38.87% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.34% on average over the next years. This is quite good.
EPS Next Y154.68%
EPS Next 2Y71.11%
EPS Next 3Y51.66%
EPS Next 5Y38.87%
Revenue Next Year18.51%
Revenue Next 2Y16.44%
Revenue Next 3Y14.15%
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 82.00.
WELL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, WELL is valued quite expensively.
With a Price/Forward Earnings ratio of 66.52, WELL can be considered very expensive at the moment.
WELL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WELL to the average of the S&P500 Index (22.83), we can say WELL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82 | ||
| Fwd PE | 66.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WELL indicates a rather expensive valuation: WELL more expensive than 96.09% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WELL indicates a somewhat cheap valuation: WELL is cheaper than 60.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.54 | ||
| EV/EBITDA | 33 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WELL's earnings are expected to grow with 51.66% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y71.11%
EPS Next 3Y51.66%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 15.49, WELL's dividend is way lower than its industry peers. On top of this 83.59% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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
160.04% of the earnings are spent on dividend by WELL. This is not a sustainable payout ratio.
DP160.04%
EPS Next 2Y71.11%
EPS Next 3Y51.66%
WELLTOWER INC
NYSE:WELL (12/20/2024, 8:04:00 PM)
After market: 124.64 0 (0%)124.64
+0.86 (+0.69%)
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 Change3.68%
Ins Owners0.04%
Ins Owner Change-0.33%
Market Cap77.61B
Analysts79.2
Price Target143.48 (15.12%)
Short Float %1.72%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Dividend Growth(5Y)-7.71%
DP160.04%
Div Incr Years1
Div Non Decr Years3
Ex-Date
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)7.33%
PT rev (3m)17.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)5.34%
EPS NY rev (3m)-4.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)14.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82 | ||
| Fwd PE | 66.52 | ||
| P/S | 10.36 | ||
| P/FCF | 37.54 | ||
| P/OCF | 37.54 | ||
| P/B | 2.56 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 33 |
EPS(TTM)1.52
EY1.22%
EPS(NY)1.87
Fwd EY1.5%
FCF(TTM)3.32
FCFY2.66%
OCF(TTM)3.32
OCFY2.66%
SpS12.03
BVpS48.71
TBVpS48.61
PEG (NY)0.53
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 | 2.58 |
F-Score7
WACC8.23%
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 Year18.51%
Revenue Next 2Y16.44%
Revenue Next 3Y14.15%
Revenue Next 5Y13.34%
EBIT growth 1Y25.99%
EBIT growth 3Y13.6%
EBIT growth 5Y-1.65%
EBIT Next Year210.79%
EBIT Next 3Y59.32%
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%