WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - NYSE:WELL - US95040Q1040 - REIT
197.58 USD
+0.68 (+0.35%)
197.58 USD
0 (0%)
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 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
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.
Each year in the past 5 years WELL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.61%, WELL is doing good in the industry, outperforming 60.16% of the companies in the same industry.
With a Return On Equity value of 2.48%, WELL perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
WELL's Return On Invested Capital of 2.28% is in line compared to the rest of the industry. WELL outperforms 44.53% 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 3.04%.
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 58.59% of the companies in the same industry.
WELL's Profit Margin has declined in the last couple of years.
WELL has a Operating Margin of 16.41%. This is in the lower half of the industry: WELL underperforms 63.28% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 40.85%, WELL is not doing good in the industry: 83.59% of the companies in the same industry are doing better.
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
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
The number of shares outstanding for WELL has been increased compared to 5 years ago.
WELL has a better debt/assets ratio than last year.
2.2 Solvency
WELL has an Altman-Z score of 3.99. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
WELL's Altman-Z score of 3.99 is amongst the best of the industry. WELL outperforms 98.44% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 6.09, WELL belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that WELL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.44, WELL belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.99 |
ROIC/WACC0.28
WACC8.15%
2.3 Liquidity
WELL has a Current Ratio of 2.77. This indicates that WELL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WELL (2.77) is better than 89.84% 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.
With an excellent Quick ratio value of 2.77, WELL belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
The earnings per share for WELL have decreased by -4.61% in the last year.
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%.
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
The Earnings Per Share is expected to grow by 22.62% on average over the next years. This is a very strong growth
WELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.96% yearly.
EPS Next Y21.76%
EPS Next 2Y26.59%
EPS Next 3Y24.4%
EPS Next 5Y22.62%
Revenue Next Year31.1%
Revenue Next 2Y22.44%
Revenue Next 3Y19.04%
Revenue Next 5Y15.96%
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
Based on the Price/Earnings ratio of 136.26, the valuation of WELL can be described as expensive.
WELL's Price/Earnings ratio is a bit more expensive when compared to the industry. WELL is more expensive than 60.16% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, WELL is valued quite expensively.
Based on the Price/Forward Earnings ratio of 79.03, the valuation of WELL can be described as expensive.
WELL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WELL to the average of the S&P500 Index (34.08), we can say WELL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 136.26 | ||
| Fwd PE | 79.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued more expensive than 94.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than 64.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.42 | ||
| EV/EBITDA | 39.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as WELL's earnings are expected to grow with 24.40% in the coming years.
PEG (NY)6.26
PEG (5Y)N/A
EPS Next 2Y26.59%
EPS Next 3Y24.4%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.63%.
With a Dividend Yield of 1.63, WELL pays less dividend than the industry average, which is at 6.50. 89.06% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.44, WELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 2Y26.59%
EPS Next 3Y24.4%
197.58
+0.68 (+0.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change1.37%
Ins Owners0.03%
Ins Owner Change-0.07%
Market Cap132.15B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.22
Price Target193.37 (-2.13%)
Short Float %1.67%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)1.32%
PT rev (3m)9.43%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)7.25%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)2.63%
Revenue NQ rev (3m)3.46%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 136.26 | ||
| Fwd PE | 79.03 | ||
| P/S | 13.34 | ||
| P/FCF | 47.42 | ||
| P/OCF | 47.42 | ||
| P/B | 3.41 | ||
| P/tB | 3.43 | ||
| EV/EBITDA | 39.05 |
EPS(TTM)1.45
EY0.73%
EPS(NY)2.5
Fwd EY1.27%
FCF(TTM)4.17
FCFY2.11%
OCF(TTM)4.17
OCFY2.11%
SpS14.81
BVpS57.95
TBVpS57.64
PEG (NY)6.26
PEG (5Y)N/A
Graham Number43.48
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 | 3.99 |
F-Score6
WACC8.15%
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 Y21.76%
EPS Next 2Y26.59%
EPS Next 3Y24.4%
EPS Next 5Y22.62%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year31.1%
Revenue Next 2Y22.44%
Revenue Next 3Y19.04%
Revenue Next 5Y15.96%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year210.09%
EBIT Next 3Y61.6%
EBIT Next 5Y35.33%
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 136.26 and the Price/Book (PB) ratio is 3.41.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.