WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
206.25 USD
+1.66 (+0.81%)
206.25 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 128 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 quite expensive at the moment. It does show a decent growth rate.
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.
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
The Return On Assets of WELL (1.61%) is better than 60.16% of its industry peers.
WELL's Return On Equity of 2.48% is in line compared to the rest of the industry. WELL outperforms 56.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.28%, WELL is in line with its industry, outperforming 43.75% of the companies in the same industry.
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
WELL's Profit Margin of 9.69% is in line compared to the rest of the industry. WELL outperforms 58.59% of its industry peers.
WELL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.41%, WELL is doing worse than 63.28% of the companies in the same industry.
In the last couple of years the Operating Margin of WELL has declined.
WELL has a worse Gross Margin (40.85%) than 84.38% 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.
WELL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WELL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.26 indicates that WELL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.26, WELL belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
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 has a better Debt to FCF ratio (6.09) than 96.88% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that WELL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, WELL belongs to the top 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 | 4.26 |
ROIC/WACC0.28
WACC8.07%
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.
WELL has a Current ratio of 2.77. This is amongst the best in the industry. WELL outperforms 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.
The Quick ratio of WELL (2.77) is better than 89.84% 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%.
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.
Looking at the last year, WELL shows a very strong growth in Revenue. 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.
Based on estimates for the next years, WELL will show a quite strong growth in Revenue. The Revenue will grow by 17.92% on average per year.
EPS Next Y21.76%
EPS Next 2Y26.05%
EPS Next 3Y24.4%
EPS Next 5Y22.85%
Revenue Next Year33.39%
Revenue Next 2Y26.26%
Revenue Next 3Y21.72%
Revenue Next 5Y17.92%
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
Based on the Price/Earnings ratio of 142.24, the valuation of WELL can be described as expensive.
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 (26.15), we can say WELL is valued expensively.
WELL is valuated quite expensively with a Price/Forward Earnings ratio of 83.21.
WELL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, WELL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 142.24 | ||
| Fwd PE | 83.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued expensively inside the industry as 94.53% 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 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.8 | ||
| EV/EBITDA | 41.63 |
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 24.40% in the coming years.
PEG (NY)6.54
PEG (5Y)N/A
EPS Next 2Y26.05%
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 6.59. 88.28% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.41, 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
WELL pays out 186.03% of its income as dividend. This is not a sustainable payout ratio.
DP186.03%
EPS Next 2Y26.05%
EPS Next 3Y24.4%
206.25
+1.66 (+0.81%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change1.53%
Ins Owners0.03%
Ins Owner Change-0.04%
Market Cap141.56B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.22
Price Target203.34 (-1.41%)
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)6.54%
PT rev (3m)15.07%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)6.42%
EPS NY rev (1m)-2.31%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)3.8%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)3.65%
Revenue NY rev (3m)6.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 142.24 | ||
| Fwd PE | 83.21 | ||
| P/S | 14.29 | ||
| P/FCF | 50.8 | ||
| P/OCF | 50.8 | ||
| P/B | 3.65 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 41.63 |
EPS(TTM)1.45
EY0.7%
EPS(NY)2.48
Fwd EY1.2%
FCF(TTM)4.06
FCFY1.97%
OCF(TTM)4.06
OCFY1.97%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.54
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 | 4.26 |
F-Score6
WACC8.07%
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 2Y26.05%
EPS Next 3Y24.4%
EPS Next 5Y22.85%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year33.39%
Revenue Next 2Y26.26%
Revenue Next 3Y21.72%
Revenue Next 5Y17.92%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year197.78%
EBIT Next 3Y60.95%
EBIT Next 5Y37.1%
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 142.24 and the Price/Book (PB) ratio is 3.65.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.