WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - NYSE:WELL - US95040Q1040 - REIT
166.53 USD
+0.62 (+0.37%)
166.53 USD
0 (0%)
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. WELL has an average financial health and profitability rating. WELL shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
WELL had positive earnings in the past year.
In the past year WELL had a positive cash flow from operations.
WELL had positive earnings in each of the past 5 years.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
WELL's Return On Assets of 2.02% is fine compared to the rest of the industry. WELL outperforms 66.15% of its industry peers.
Looking at the Return On Equity, with a value of 3.15%, WELL is in line with its industry, outperforming 56.15% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.21%, WELL is in line with its industry, outperforming 43.08% 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 3 year average ROIC (1.79%) for WELL is below the current ROIC(2.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 3.15% | ||
| ROIC | 2.21% |
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 of 12.18%. This is in the better half of the industry: WELL outperforms 64.62% of its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
WELL's Operating Margin of 15.88% is on the low side compared to the rest of the industry. WELL is outperformed by 63.85% of its industry peers.
In the last couple of years the Operating Margin of WELL has declined.
WELL's Gross Margin of 40.56% is on the low side compared to the rest of the industry. WELL is outperformed by 83.85% of its industry peers.
WELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.88% | ||
| PM (TTM) | 12.18% | ||
| GM | 40.56% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WELL is destroying value.
The number of shares outstanding for WELL has been increased compared to 1 year ago.
Compared to 5 years ago, WELL has more shares outstanding
The debt/assets ratio for WELL has been reduced compared to a year ago.
2.2 Solvency
WELL has an Altman-Z score of 3.44. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
WELL's Altman-Z score of 3.44 is amongst the best of the industry. WELL outperforms 97.69% of its industry peers.
The Debt to FCF ratio of WELL is 6.15, which is on the high side as it means it would take WELL, 6.15 years of fcf income to pay off all of its debts.
WELL has a better Debt to FCF ratio (6.15) than 96.15% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that WELL is not too dependend on debt financing.
The Debt to Equity ratio of WELL (0.45) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.15 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.28
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.92 indicates that WELL should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.92, WELL is doing good in the industry, outperforming 78.46% of the companies in the same industry.
WELL has a Quick Ratio of 1.92. This is a normal value and indicates that WELL is financially healthy and should not expect problems in meeting its short term obligations.
WELL's Quick ratio of 1.92 is fine compared to the rest of the industry. WELL outperforms 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
WELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.84%, 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 -10.72% yearly.
Looking at the last year, WELL shows a very strong growth in Revenue. The Revenue has grown by 30.74%.
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)71.84%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%7.14%
Revenue 1Y (TTM)30.74%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%39.64%
3.2 Future
WELL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.90% yearly.
The Revenue is expected to grow by 18.76% on average over the next years. This is quite good.
EPS Next Y20.8%
EPS Next 2Y24.48%
EPS Next 3Y24.69%
EPS Next 5Y20.9%
Revenue Next Year29.79%
Revenue Next 2Y21.45%
Revenue Next 3Y18.92%
Revenue Next 5Y18.76%
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 94.08, which means the current valuation is very expensive for WELL.
WELL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.41. WELL is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 68.89 indicates a quite expensive valuation of WELL.
The rest of the industry has a similar Price/Forward Earnings ratio as WELL.
The average S&P500 Price/Forward Earnings ratio is at 22.88. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.08 | ||
| Fwd PE | 68.89 |
4.2 Price Multiples
95.38% of the companies in the same industry are cheaper than WELL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.62 | ||
| EV/EBITDA | 36.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WELL does not grow enough to justify the current Price/Earnings ratio.
WELL's earnings are expected to grow with 24.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.52
PEG (5Y)N/A
EPS Next 2Y24.48%
EPS Next 3Y24.69%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.77%.
Compared to an average industry Dividend Yield of 6.66, WELL's dividend is way lower than its industry peers. On top of this 89.23% of the companies listed in the same industry pay a better dividend than WELL!
WELL's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of WELL decreases each year by -6.10%.
WELL has paid a dividend for at least 10 years, which is 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
150.35% of the earnings are spent on dividend by WELL. This is not a sustainable payout ratio.
DP150.35%
EPS Next 2Y24.48%
EPS Next 3Y24.69%
166.53
+0.62 (+0.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.13%
Inst Owner Change1.36%
Ins Owners0.03%
Ins Owner Change-0.03%
Market Cap111.38B
Analysts83.2
Price Target185.88 (11.62%)
Short Float %1.9%
Short Ratio5.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.1%
DP150.35%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.22%
Min EPS beat(2)-3.19%
Max EPS beat(2)-1.25%
EPS beat(4)1
Avg EPS beat(4)7.71%
Min EPS beat(4)-54.71%
Max EPS beat(4)90%
EPS beat(8)3
Avg EPS beat(8)2.19%
EPS beat(12)4
Avg EPS beat(12)-19.83%
EPS beat(16)6
Avg EPS beat(16)-10.02%
Revenue beat(2)2
Avg Revenue beat(2)1.94%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.59%
Revenue beat(4)4
Avg Revenue beat(4)2.52%
Min Revenue beat(4)1.3%
Max Revenue beat(4)3.87%
Revenue beat(8)6
Avg Revenue beat(8)1.41%
Revenue beat(12)7
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)1.49%
PT rev (1m)5.2%
PT rev (3m)7.76%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)4.04%
EPS NY rev (1m)0.61%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)7.56%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.08 | ||
| Fwd PE | 68.89 | ||
| P/S | 12 | ||
| P/FCF | 42.62 | ||
| P/OCF | 42.62 | ||
| P/B | 3.1 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 36.22 |
EPS(TTM)1.77
EY1.06%
EPS(NY)2.42
Fwd EY1.45%
FCF(TTM)3.91
FCFY2.35%
OCF(TTM)3.91
OCFY2.35%
SpS13.87
BVpS53.68
TBVpS53.36
PEG (NY)4.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 3.15% | ||
| ROCE | 2.8% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.42% | ||
| OM | 15.88% | ||
| PM (TTM) | 12.18% | ||
| GM | 40.56% | ||
| FCFM | 28.17% |
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%
ROICexcg growth 3Y4.53%
ROICexcg 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 | 0.45 | ||
| Debt/FCF | 6.15 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 77.19% | ||
| Profit Quality | 231.32% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 3.44 |
F-Score6
WACC7.99%
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)71.84%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%7.14%
EPS Next Y20.8%
EPS Next 2Y24.48%
EPS Next 3Y24.69%
EPS Next 5Y20.9%
Revenue 1Y (TTM)30.74%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%39.64%
Revenue Next Year29.79%
Revenue Next 2Y21.45%
Revenue Next 3Y18.92%
Revenue Next 5Y18.76%
EBIT growth 1Y41.7%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year207.04%
EBIT Next 3Y60.22%
EBIT Next 5Y34.03%
FCF growth 1Y86.43%
FCF growth 3Y20.95%
FCF growth 5Y8%
OCF growth 1Y86.43%
OCF growth 3Y20.95%
OCF growth 5Y8%