WELLTOWER INC (WELL) Stock Fundamental Analysis
NYSE:WELL - New York Stock Exchange, Inc. - US95040Q1040 - REIT - Currency: USD
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. Both the profitability and the financial health of WELL get a neutral evaluation. Nothing too spectacular is happening here. WELL shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
WELL had positive earnings in the past year.
WELL had a positive operating cash flow in the past year.
In the past 5 years WELL has always been profitable.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WELL (2.03%) is better than 67.69% of its industry peers.
WELL's Return On Equity of 3.19% is fine compared to the rest of the industry. WELL outperforms 60.77% of its industry peers.
WELL has a Return On Invested Capital of 1.94%. This is in the lower half of the industry: WELL underperforms 67.69% 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 3.16%.
The 3 year average ROIC (1.79%) for WELL is below the current ROIC(1.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 3.19% | ||
| ROIC | 1.94% |
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 decent Profit Margin value of 12.65%, WELL is doing good in the industry, outperforming 65.38% of the companies in the same industry.
In the last couple of years the Profit Margin of WELL has declined.
The Operating Margin of WELL (14.45%) is worse than 66.92% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 40.03%, WELL is doing worse than 83.85% of the companies in the same industry.
WELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.45% | ||
| PM (TTM) | 12.65% | ||
| GM | 40.03% |
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.89%
PM growth 5Y-13.12%
GM growth 3Y-1.59%
GM growth 5Y-3.55%
2. Health
2.1 Basic Checks
WELL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WELL has more shares outstanding than it did 1 year ago.
WELL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WELL has been reduced compared to a year ago.
2.2 Solvency
WELL has an Altman-Z score of 3.15. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
WELL has a Altman-Z score of 3.15. This is amongst the best in the industry. WELL outperforms 97.69% of its industry peers.
The Debt to FCF ratio of WELL is 6.47, which is on the high side as it means it would take WELL, 6.47 years of fcf income to pay off all of its debts.
WELL's Debt to FCF ratio of 6.47 is amongst the best of the industry. WELL outperforms 96.15% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that WELL is not too dependend on debt financing.
The Debt to Equity ratio of WELL (0.47) is better than 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.23
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
WELL's Current ratio of 1.77 is fine compared to the rest of the industry. WELL outperforms 73.85% of its industry peers.
A Quick Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
WELL has a better Quick ratio (1.77) than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
WELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 114.81%, which is quite impressive.
The earnings per share for WELL have been decreasing by -10.72% on average. This is quite bad
WELL shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.32%.
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)114.81%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%81.82%
Revenue 1Y (TTM)23.32%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.29%
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 20.90% on average per year.
The Revenue is expected to grow by 17.75% on average over the next years. This is quite good.
EPS Next Y17.55%
EPS Next 2Y23.02%
EPS Next 3Y22.71%
EPS Next 5Y20.9%
Revenue Next Year27.69%
Revenue Next 2Y19.59%
Revenue Next 3Y16.75%
Revenue Next 5Y17.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 88.35, WELL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WELL.
When comparing the Price/Earnings ratio of WELL to the average of the S&P500 Index (27.15), we can say WELL is valued expensively.
The Price/Forward Earnings ratio is 65.12, which means the current valuation is very expensive for WELL.
WELL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.60. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.35 | ||
| Fwd PE | 65.12 |
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 95.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.06 | ||
| EV/EBITDA | 36.82 |
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 22.71% in the coming years.
PEG (NY)5.04
PEG (5Y)N/A
EPS Next 2Y23.02%
EPS Next 3Y22.71%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.64, WELL's dividend is way lower than its industry peers. On top of this 86.15% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.42, WELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of WELL decreases each year by -6.09%.
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)-6.09%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
WELL pays out 150.16% of its income as dividend. This is not a sustainable payout ratio.
DP150.16%
EPS Next 2Y23.02%
EPS Next 3Y22.71%
153.73
+1.6 (+1.05%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.14%
Inst Owner Change3.21%
Ins Owners0.04%
Ins Owner Change1.16%
Market Cap100.53B
Analysts84
Price Target174.06 (13.22%)
Short Float %1.54%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.09%
DP150.16%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.98%
Min EPS beat(2)-54.71%
Max EPS beat(2)-1.25%
EPS beat(4)2
Avg EPS beat(4)13.68%
Min EPS beat(4)-54.71%
Max EPS beat(4)90%
EPS beat(8)4
Avg EPS beat(8)5.28%
EPS beat(12)5
Avg EPS beat(12)-18.88%
EPS beat(16)6
Avg EPS beat(16)-12.47%
Revenue beat(2)2
Avg Revenue beat(2)2.58%
Min Revenue beat(2)1.3%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)3.87%
Revenue beat(8)6
Avg Revenue beat(8)1.41%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)1.49%
PT rev (1m)1.54%
PT rev (3m)8.35%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)-2.35%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)3.75%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.35 | ||
| Fwd PE | 65.12 | ||
| P/S | 11.75 | ||
| P/FCF | 41.06 | ||
| P/OCF | 41.06 | ||
| P/B | 2.96 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 36.82 |
EPS(TTM)1.74
EY1.13%
EPS(NY)2.36
Fwd EY1.54%
FCF(TTM)3.74
FCFY2.44%
OCF(TTM)3.74
OCFY2.44%
SpS13.08
BVpS51.93
TBVpS51.62
PEG (NY)5.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 3.19% | ||
| ROCE | 2.45% | ||
| ROIC | 1.94% | ||
| ROICexc | 2.08% | ||
| ROICexgc | 2.09% | ||
| OM | 14.45% | ||
| PM (TTM) | 12.65% | ||
| GM | 40.03% | ||
| FCFM | 28.62% |
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 3Y4.48%
ROICexc growth 5Y-7.26%
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.89%
PM growth 5Y-13.12%
GM growth 3Y-1.59%
GM growth 5Y-3.55%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 5.21 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 80.62% | ||
| Profit Quality | 226.2% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 3.15 |
F-Score6
WACC8.61%
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)549.7%
Profit Quality(5y)433.6%
High Growth Momentum
Growth
EPS 1Y (TTM)114.81%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%81.82%
EPS Next Y17.55%
EPS Next 2Y23.02%
EPS Next 3Y22.71%
EPS Next 5Y20.9%
Revenue 1Y (TTM)23.32%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.29%
Revenue Next Year27.69%
Revenue Next 2Y19.59%
Revenue Next 3Y16.75%
Revenue Next 5Y17.75%
EBIT growth 1Y9.94%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year200.24%
EBIT Next 3Y57.73%
EBIT Next 5Y34.03%
FCF growth 1Y77.39%
FCF growth 3Y20.95%
FCF growth 5Y8%
OCF growth 1Y77.39%
OCF growth 3Y20.95%
OCF growth 5Y8%