WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
183.94 USD
+0.45 (+0.25%)
183.63 USD
-0.31 (-0.17%)
Taking everything into account, WELL scores 5 out of 10 in our fundamental rating. WELL was compared to 124 industry peers in the Diversified REITs industry. While WELL has a great health rating, its profitability is only average at the moment. WELL is valied quite expensively at the moment, while it does show 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.
- 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
- WELL's Return On Assets of 1.61% is in line compared to the rest of the industry. WELL outperforms 58.06% of its industry peers.
- WELL has a Return On Equity of 2.48%. This is comparable to the rest of the industry: WELL outperforms 54.03% of its industry peers.
- WELL has a Return On Invested Capital (2.28%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for WELL is in line with the industry average of 3.05%.
- 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
- 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.
- WELL's Operating Margin of 16.41% is on the low side compared to the rest of the industry. WELL is outperformed by 62.90% of its industry peers.
- WELL's Operating Margin has declined in the last couple of years.
- WELL's Gross Margin of 40.85% is on the low side compared to the rest of the industry. WELL is outperformed by 83.06% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WELL is destroying value.
- WELL has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for WELL has been increased compared to 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 3.81. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.81, WELL belongs to the best of the industry, outperforming 99.19% 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 has a better Debt to FCF ratio (6.09) than 96.77% 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.
- The Debt to Equity ratio of WELL (0.44) is better than 91.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.28
WACC8.23%
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.
- With an excellent Current ratio value of 2.77, WELL belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- A Quick Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
- WELL's Quick ratio of 2.77 is amongst the best of the industry. WELL outperforms 90.32% 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%.
- WELL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.72% yearly.
- 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
- Based on estimates for the next years, WELL will show a very strong growth in Earnings Per Share. The EPS will grow by 22.85% on average per year.
- The Revenue is expected to grow by 18.37% on average over the next years. This is quite good.
EPS Next Y16.25%
EPS Next 2Y28.25%
EPS Next 3Y23.51%
EPS Next 5Y22.85%
Revenue Next Year32.97%
Revenue Next 2Y25.57%
Revenue Next 3Y20%
Revenue Next 5Y18.37%
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
- A Price/Earnings ratio of 126.86 indicates a quite expensive valuation of WELL.
- 61.29% of the companies in the same industry are cheaper than WELL, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, WELL is valued quite expensively.
- With a Price/Forward Earnings ratio of 71.68, WELL can be considered very expensive at the moment.
- WELL's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.86 | ||
| Fwd PE | 71.68 |
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 94.35% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.3 | ||
| EV/EBITDA | 37.35 |
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.
- WELL's earnings are expected to grow with 23.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.8
PEG (5Y)N/A
EPS Next 2Y28.25%
EPS Next 3Y23.51%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.63%, WELL has a reasonable but not impressive dividend return.
- With a Dividend Yield of 1.63, WELL pays less dividend than the industry average, which is at 6.82. 87.90% 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 1.82.
| 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 2Y28.25%
EPS Next 3Y23.51%
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 126.86 and the Price/Book (PB) ratio is 3.26.
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%.