WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
203.87 USD
+1.95 (+0.97%)
203.87 USD
0 (0%)
Taking everything into account, WELL scores 5 out of 10 in our fundamental rating. WELL was compared to 128 industry peers in the Diversified REITs industry. WELL has an excellent financial health rating, but there are some minor concerns on its profitability. WELL is valied quite expensively at the moment, while it does show 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.
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
The Return On Assets of WELL (1.61%) is better than 60.16% of its industry peers.
Looking at the Return On Equity, with a value of 2.48%, WELL is in line with its industry, outperforming 56.25% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for WELL is in line with the industry average of 3.06%.
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
With a Profit Margin value of 9.69%, WELL perfoms like the industry average, outperforming 58.59% of the companies in the same industry.
In the last couple of years the Profit Margin of WELL has declined.
WELL has a worse Operating Margin (16.41%) than 63.28% 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 84.38% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WELL is destroying value.
Compared to 1 year ago, WELL has more shares outstanding
The number of shares outstanding for WELL has been increased compared to 5 years ago.
The debt/assets ratio for WELL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.21 indicates that WELL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.21, 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.
WELL has a better Debt to FCF ratio (6.09) than 96.88% 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.
With an excellent Debt to Equity ratio value of 0.44, WELL belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 4.21 |
ROIC/WACC0.28
WACC8.12%
2.3 Liquidity
A Current Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
Looking at the Current 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.
WELL has a Quick Ratio of 2.77. This indicates that WELL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.77, WELL belongs to the best 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
Looking at the last year, WELL shows a very strong growth in Revenue. 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
Based on estimates for the next years, WELL will show a very strong growth in Earnings Per Share. The EPS will grow by 22.85% on average per year.
The Revenue is expected to grow by 17.92% on average over the next years. This is quite good.
EPS Next Y21.76%
EPS Next 2Y26.05%
EPS Next 3Y24.4%
EPS Next 5Y22.85%
Revenue Next Year33.39%
Revenue Next 2Y26.26%
Revenue Next 3Y21.72%
Revenue Next 5Y17.92%
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
A Price/Earnings ratio of 140.60 indicates a quite expensive valuation of WELL.
WELL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WELL to the average of the S&P500 Index (26.41), we can say WELL is valued expensively.
A Price/Forward Earnings ratio of 82.25 indicates a quite expensive valuation of WELL.
WELL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.40. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.6 | ||
| Fwd PE | 82.25 |
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.
Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.21 | ||
| EV/EBITDA | 41.19 |
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 24.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.46
PEG (5Y)N/A
EPS Next 2Y26.05%
EPS Next 3Y24.4%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 6.34, WELL's dividend is way lower than its industry peers. On top of this 88.28% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.32, 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 2Y26.05%
EPS Next 3Y24.4%
203.87
+1.95 (+0.97%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change1.53%
Ins Owners0.03%
Ins Owner Change-0.04%
Market Cap139.92B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.22
Price Target203.34 (-0.26%)
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)5.15%
PT rev (3m)11.92%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)5.23%
EPS NY rev (1m)-2.31%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)3.8%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)3.65%
Revenue NY rev (3m)4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.6 | ||
| Fwd PE | 82.25 | ||
| P/S | 14.12 | ||
| P/FCF | 50.21 | ||
| P/OCF | 50.21 | ||
| P/B | 3.61 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 41.19 |
EPS(TTM)1.45
EY0.71%
EPS(NY)2.48
Fwd EY1.22%
FCF(TTM)4.06
FCFY1.99%
OCF(TTM)4.06
OCFY1.99%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.46
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 | 4.21 |
F-Score6
WACC8.12%
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 Y21.76%
EPS Next 2Y26.05%
EPS Next 3Y24.4%
EPS Next 5Y22.85%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year33.39%
Revenue Next 2Y26.26%
Revenue Next 3Y21.72%
Revenue Next 5Y17.92%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year197.78%
EBIT Next 3Y60.95%
EBIT Next 5Y37.1%
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 140.6 and the Price/Book (PB) ratio is 3.61.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.