WELLTOWER INC (WELL)
US95040Q1040 - REIT
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 129 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 not valued too expensively and it also shows 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.
Each year in the past 5 years WELL has been profitable.
Each year in the past 5 years WELL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.87%, WELL is in the better half of the industry, outperforming 66.14% of the companies in the same industry.
WELL's Return On Equity of 3.02% is in line compared to the rest of the industry. WELL outperforms 59.84% of its industry peers.
The Return On Invested Capital of WELL (1.91%) is worse than 70.87% 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 3.07%.
The last Return On Invested Capital (1.91%) for WELL is above the 3 year average (1.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 3.02% | ||
| ROIC | 1.91% |
ROA(3y)0.7%
ROA(5y)1.76%
ROE(3y)1.31%
ROE(5y)3.6%
ROIC(3y)1.75%
ROIC(5y)1.99%
1.3 Margins
WELL has a better Profit Margin (12.22%) than 63.78% of its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
The Operating Margin of WELL (15.18%) is worse than 65.35% of its industry peers.
In the last couple of years the Operating Margin of WELL has declined.
WELL has a Gross Margin of 40.86%. This is amonst the worse of the industry: WELL underperforms 86.61% of its industry peers.
WELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.18% | ||
| PM (TTM) | 12.22% | ||
| GM | 40.86% |
OM growth 3Y0.57%
OM growth 5Y-8.21%
PM growth 3Y-37.76%
PM growth 5Y-20.5%
GM growth 3Y-2.58%
GM growth 5Y-3.22%
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.
Compared to 1 year ago, WELL has more shares outstanding
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 2.78. This is not the best score and indicates that WELL is in the grey zone with still only limited risk for bankruptcy at the moment.
WELL's Altman-Z score of 2.78 is amongst the best of the industry. WELL outperforms 96.06% of its industry peers.
The Debt to FCF ratio of WELL is 7.67, which is on the high side as it means it would take WELL, 7.67 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.67, WELL belongs to the top of the industry, outperforming 93.70% of the companies in the same industry.
WELL has a Debt/Equity ratio of 0.52. This is a neutral value indicating WELL is somewhat dependend on debt financing.
WELL has a Debt to Equity ratio of 0.52. This is amongst the best in the industry. WELL outperforms 87.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.23
WACC8.18%
2.3 Liquidity
A Current Ratio of 2.48 indicates that WELL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.48, WELL belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
WELL has a Quick Ratio of 2.48. This indicates that WELL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.48, WELL belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
WELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 216.67%, 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 -20.54% yearly.
Looking at the last year, WELL shows a quite strong growth in Revenue. The Revenue has grown by 16.91% in the last year.
The Revenue has been growing slightly by 7.15% on average over the past years.
EPS 1Y (TTM)216.67%
EPS 3Y-35%
EPS 5Y-20.54%
EPS Q2Q%204.17%
Revenue 1Y (TTM)16.91%
Revenue growth 3Y12.95%
Revenue growth 5Y7.15%
Sales Q2Q%23.69%
3.2 Future
WELL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.38% yearly.
WELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
EPS Next Y141.77%
EPS Next 2Y70.27%
EPS Next 3Y51.57%
EPS Next 5Y37.38%
Revenue Next Year18.25%
Revenue Next 2Y16.15%
Revenue Next 3Y12.67%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 88.43, WELL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WELL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.81, WELL is valued quite expensively.
A Price/Forward Earnings ratio of 72.45 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 23.56. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.43 | ||
| Fwd PE | 72.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued expensively inside the industry as 96.06% of the companies are valued cheaper.
WELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WELL is cheaper than 64.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.48 | ||
| EV/EBITDA | 35.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WELL's earnings are expected to grow with 51.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y70.27%
EPS Next 3Y51.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, WELL has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.96, WELL pays less dividend than the industry average, which is at 6.20. 83.46% 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 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of WELL decreases each year by -7.71%.
WELL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WELL decreased in the last 3 years.
Dividend Growth(5Y)-7.71%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
WELL pays out 160.04% of its income as dividend. This is not a sustainable payout ratio.
DP160.04%
EPS Next 2Y70.27%
EPS Next 3Y51.57%
WELLTOWER INC
NYSE:WELL (11/14/2024, 7:52:28 PM)
After market: 134.42 0 (0%)134.42
-0.53 (-0.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap83.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.43 | ||
| Fwd PE | 72.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 3.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.18% | ||
| PM (TTM) | 12.22% | ||
| GM | 40.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)216.67%
EPS 3Y-35%
EPS 5Y
EPS Q2Q%
EPS Next Y141.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.91%
Revenue growth 3Y12.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 5Y
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OCF growth 5Y