WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
186.08 USD
-0.23 (-0.12%)
186.08 USD
0 (0%)
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 126 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.
WELL had a positive operating cash flow in the past year.
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
WELL has a Return On Assets of 1.61%. This is comparable to the rest of the industry: WELL outperforms 57.48% of its industry peers.
Looking at the Return On Equity, with a value of 2.48%, WELL is in line with its industry, outperforming 53.54% of the companies in the same industry.
The Return On Invested Capital of WELL (2.28%) is comparable to the rest of the 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 3 year average ROIC (1.79%) for WELL is below the current ROIC(2.28%), indicating increased profibility in the last year.
| 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 55.91% of the companies in the same industry.
WELL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.41%, WELL is doing worse than 62.99% of the companies in the same industry.
In the last couple of years the Operating Margin of WELL has declined.
WELL's Gross Margin of 40.85% is on the low side compared to the rest of the industry. WELL is outperformed by 83.46% of its industry peers.
WELL's Gross Margin has declined in the last couple of years.
| 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
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 3.86. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.86, WELL belongs to the top of the industry, outperforming 99.21% 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's Debt to FCF ratio of 6.09 is amongst the best of the industry. WELL outperforms 96.85% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that WELL is not too dependend on debt financing.
WELL's Debt to Equity ratio of 0.44 is amongst the best of the industry. WELL outperforms 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.28
WACC8.18%
2.3 Liquidity
A Current Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
WELL has a Current ratio of 2.77. This is amongst the best in the industry. WELL outperforms 90.55% of its industry peers.
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.
WELL's Quick ratio of 2.77 is amongst the best of the industry. WELL outperforms 90.55% 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%.
Measured over the past years, WELL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.72% on average per year.
WELL shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.28%.
The Revenue has been growing by 9.31% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 22.85% on average over the next years. This is a very strong growth
Based on estimates for the next years, WELL will show a quite strong growth in Revenue. The Revenue will grow by 18.91% on average per year.
EPS Next Y18.81%
EPS Next 2Y26.05%
EPS Next 3Y23.49%
EPS Next 5Y22.85%
Revenue Next Year35.01%
Revenue Next 2Y25.03%
Revenue Next 3Y20.73%
Revenue Next 5Y18.91%
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
The Price/Earnings ratio is 128.33, which means the current valuation is very expensive for WELL.
Based on the Price/Earnings ratio, WELL is valued a bit more expensive than the industry average as 61.42% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.19, WELL is valued quite expensively.
Based on the Price/Forward Earnings ratio of 75.07, 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.33 | ||
| Fwd PE | 75.07 |
4.2 Price Multiples
WELL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WELL is more expensive than 94.49% of the companies 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 68.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.83 | ||
| EV/EBITDA | 37.83 |
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.
A more expensive valuation may be justified as WELL's earnings are expected to grow with 23.49% in the coming years.
PEG (NY)6.82
PEG (5Y)N/A
EPS Next 2Y26.05%
EPS Next 3Y23.49%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.86, WELL's dividend is way lower than its industry peers. On top of this 90.55% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 3Y23.49%
186.08
-0.23 (-0.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.26%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change-0.03%
Market Cap127.71B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.22
Price Target217.11 (16.68%)
Short Float %1.77%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.1%
DP186.03%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
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)1.19%
PT rev (3m)13.76%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)4.08%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.33 | ||
| Fwd PE | 75.07 | ||
| P/S | 12.89 | ||
| P/FCF | 45.83 | ||
| P/OCF | 45.83 | ||
| P/B | 3.3 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 37.83 |
EPS(TTM)1.45
EY0.78%
EPS(NY)2.48
Fwd EY1.33%
FCF(TTM)4.06
FCFY2.18%
OCF(TTM)4.06
OCFY2.18%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.82
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 | 3.86 |
F-Score6
WACC8.18%
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 2Y26.05%
EPS Next 3Y23.49%
EPS Next 5Y22.85%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year35.01%
Revenue Next 2Y25.03%
Revenue Next 3Y20.73%
Revenue Next 5Y18.91%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year214.71%
EBIT Next 3Y63.92%
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.
Can you provide the valuation status for WELLTOWER INC?
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.
Can you provide the PE and PB ratios for WELL stock?
The Price/Earnings (PE) ratio for WELLTOWER INC (WELL) is 128.33 and the Price/Book (PB) ratio is 3.3.
Can you provide the dividend sustainability for WELL stock?
The dividend rating of WELLTOWER INC (WELL) is 3 / 10 and the dividend payout ratio is 186.03%.