WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
186.68 USD
+0.6 (+0.32%)
186.68 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 126 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.
WELL had a positive operating cash flow in the past year.
WELL had positive earnings in each of the past 5 years.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
WELL has a Return On Assets of 1.61%. This is comparable to the rest of the industry: WELL outperforms 57.94% of its industry peers.
The Return On Equity of WELL (2.48%) is comparable to the rest of the industry.
WELL has a Return On Invested Capital of 2.28%. This is comparable to the rest of the industry: WELL outperforms 44.44% 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
The Profit Margin of WELL (9.69%) is comparable to the rest of the industry.
WELL's Profit Margin has declined in the last couple of years.
The Operating Margin of WELL (16.41%) is worse than 62.70% 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 83.33% 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
WELL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WELL has been increased compared to 1 year ago.
The number of shares outstanding for WELL has been increased compared to 5 years ago.
The debt/assets ratio for WELL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.86 indicates that WELL is not in any danger for bankruptcy at the moment.
WELL has a Altman-Z score of 3.86. This is amongst the best in the industry. WELL outperforms 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.
WELL's Debt to FCF ratio of 6.09 is amongst the best of the industry. WELL outperforms 96.83% of its industry peers.
WELL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
WELL has a Debt to Equity ratio of 0.44. This is amongst the best in the industry. WELL outperforms 92.06% 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 better Current ratio (2.77) than 90.48% of its industry peers.
A Quick Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.77, WELL belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| 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
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 22.85% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.91% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 128.74 indicates a quite expensive valuation of WELL.
WELL's Price/Earnings ratio is a bit more expensive when compared to the industry. WELL is more expensive than 61.11% of the companies in the same industry.
WELL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
Based on the Price/Forward Earnings ratio of 75.32, the valuation of WELL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WELL is on the same level as its industry peers.
WELL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.74 | ||
| Fwd PE | 75.32 |
4.2 Price Multiples
WELL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WELL is more expensive than 94.44% of the companies in the same industry.
69.05% of the companies in the same industry are more expensive than WELL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.98 | ||
| EV/EBITDA | 37.83 |
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 23.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.84
PEG (5Y)N/A
EPS Next 2Y26.05%
EPS Next 3Y23.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, WELL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.86, WELL's dividend is way lower than its industry peers. On top of this 90.48% 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 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 2Y26.05%
EPS Next 3Y23.49%
186.68
+0.6 (+0.32%)
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 Change0.17%
Ins Owners0.03%
Ins Owner Change-0.02%
Market Cap128.12B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.22
Price Target217.11 (16.3%)
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 | 128.74 | ||
| Fwd PE | 75.32 | ||
| P/S | 12.93 | ||
| P/FCF | 45.98 | ||
| P/OCF | 45.98 | ||
| P/B | 3.31 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 37.83 |
EPS(TTM)1.45
EY0.78%
EPS(NY)2.48
Fwd EY1.33%
FCF(TTM)4.06
FCFY2.17%
OCF(TTM)4.06
OCFY2.17%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.84
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 128.74 and the Price/Book (PB) ratio is 3.31.
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%.