WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
189.64 USD
+1.78 (+0.95%)
189.84 USD
+0.2 (+0.11%)
Taking everything into account, WELL scores 5 out of 10 in our fundamental rating. WELL was compared to 127 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. WELL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years WELL has been profitable.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
WELL's Return On Assets of 1.61% is in line compared to the rest of the industry. WELL outperforms 56.69% of its industry peers.
The Return On Equity of WELL (2.48%) is comparable to the rest of the industry.
WELL's Return On Invested Capital of 2.28% is in line compared to the rest of the industry. WELL outperforms 43.31% of its industry peers.
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 3.06%.
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
WELL has a Profit Margin (9.69%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
WELL has a Operating Margin of 16.41%. This is in the lower half of the industry: WELL underperforms 63.78% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
WELL has a Gross Margin of 40.85%. This is amonst the worse of the industry: WELL underperforms 84.25% 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.
The number of shares outstanding for WELL has been increased compared to 1 year ago.
WELL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WELL has an improved debt to assets ratio.
2.2 Solvency
WELL has an Altman-Z score of 3.89. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
WELL has a better Altman-Z score (3.89) than 99.21% of its industry peers.
The Debt to FCF ratio of WELL is 6.09, which is on the high side as it means it would take WELL, 6.09 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WELL (6.09) is better than 96.85% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that WELL is not too dependend on debt financing.
WELL has a better Debt to Equity ratio (0.44) than 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.28
WACC8.16%
2.3 Liquidity
A Current Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
The Current ratio of WELL (2.77) is better than 89.76% of its industry peers.
A Quick Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
WELL has a better Quick ratio (2.77) than 89.76% of its industry peers.
| 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
The Revenue has grown by 32.28% in the past year. This is a very strong growth!
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
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 18.37% on average over the next years. This is quite good.
EPS Next Y18.81%
EPS Next 2Y28.56%
EPS Next 3Y23.91%
EPS Next 5Y22.85%
Revenue Next Year32.67%
Revenue Next 2Y25.03%
Revenue Next 3Y20.52%
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.
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
With a Price/Earnings ratio of 130.79, WELL can be considered very expensive at the moment.
62.20% of the companies in the same industry are cheaper than WELL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WELL to the average of the S&P500 Index (26.84), we can say WELL is valued expensively.
Based on the Price/Forward Earnings ratio of 73.55, the valuation of WELL can be described as expensive.
WELL's Price/Forward Earnings ratio is in line with the industry average.
WELL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 130.79 | ||
| Fwd PE | 73.55 |
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 95.28% of the companies listed in the same industry.
WELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WELL is cheaper than 66.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.71 | ||
| EV/EBITDA | 38.17 |
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 23.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.95
PEG (5Y)N/A
EPS Next 2Y28.56%
EPS Next 3Y23.91%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.58, WELL pays less dividend than the industry average, which is at 6.43. 89.76% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.00, WELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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
186.03% of the earnings are spent on dividend by WELL. This is not a sustainable payout ratio.
DP186.03%
EPS Next 2Y28.56%
EPS Next 3Y23.91%
189.64
+1.78 (+0.95%)
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-0.03%
Market Cap130.16B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.96
Price Target217.11 (14.49%)
Short Float %2.14%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)6.77%
PT rev (3m)16.8%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)6.44%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)5.23%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 130.79 | ||
| Fwd PE | 73.55 | ||
| P/S | 13.14 | ||
| P/FCF | 46.71 | ||
| P/OCF | 46.71 | ||
| P/B | 3.36 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 38.17 |
EPS(TTM)1.45
EY0.76%
EPS(NY)2.58
Fwd EY1.36%
FCF(TTM)4.06
FCFY2.14%
OCF(TTM)4.06
OCFY2.14%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.95
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 | 3.89 |
F-Score6
WACC8.16%
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 2Y28.56%
EPS Next 3Y23.91%
EPS Next 5Y22.85%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year32.67%
Revenue Next 2Y25.03%
Revenue Next 3Y20.52%
Revenue Next 5Y18.37%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year202.35%
EBIT Next 3Y63.98%
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 130.79 and the Price/Book (PB) ratio is 3.36.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.