WELLTOWER INC (WELL)
US95040Q1040 - REIT
Taking everything into account, WELL scores 4 out of 10 in our fundamental rating. WELL was compared to 126 industry peers in the Diversified REITs industry. WELL has an average financial health and profitability rating. 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.
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
WELL has a Return On Assets (0.77%) which is comparable to the rest of the industry.
The Return On Equity of WELL (1.34%) is comparable to the rest of the industry.
WELL has a worse Return On Invested Capital (1.86%) than 69.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WELL is in line with the industry average of 2.95%.
The 3 year average ROIC (1.75%) for WELL is below the current ROIC(1.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 1.34% | ||
| ROIC | 1.86% |
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
Looking at the Profit Margin, with a value of 5.12%, WELL is in line with its industry, outperforming 51.22% of the companies in the same industry.
WELL's Profit Margin has declined in the last couple of years.
WELL has a worse Operating Margin (14.94%) than 65.85% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
The Gross Margin of WELL (40.85%) is worse than 87.80% of its industry peers.
In the last couple of years the Gross Margin of WELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.94% | ||
| PM (TTM) | 5.12% | ||
| GM | 40.85% |
OM growth 3Y0.57%
OM growth 5Y-8.21%
PM growth 3Y-37.76%
PM growth 5Y-20.5%
GM growth 3Y-2.91%
GM growth 5Y-3.42%
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
Compared to 5 years ago, WELL has more shares outstanding
Compared to 1 year ago, WELL has an improved debt to assets ratio.
2.2 Solvency
WELL has an Altman-Z score of 1.80. This is a bad value and indicates that WELL is not financially healthy and even has some risk of bankruptcy.
WELL's Altman-Z score of 1.80 is amongst the best of the industry. WELL outperforms 94.31% of its industry peers.
The Debt to FCF ratio of WELL is 9.82, which is on the high side as it means it would take WELL, 9.82 years of fcf income to pay off all of its debts.
WELL has a Debt to FCF ratio of 9.82. This is amongst the best in the industry. WELL outperforms 89.43% of its industry peers.
WELL has a Debt/Equity ratio of 0.62. This is a neutral value indicating WELL is somewhat dependend on debt financing.
WELL has a Debt to Equity ratio of 0.62. This is amongst the best in the industry. WELL outperforms 82.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 9.82 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.23
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.81 indicates that WELL should not have too much problems paying its short term obligations.
WELL's Current ratio of 1.81 is fine compared to the rest of the industry. WELL outperforms 72.36% of its industry peers.
WELL has a Quick Ratio of 1.81. This is a normal value and indicates that WELL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WELL (1.81) is better than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
WELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
Measured over the past years, WELL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.29% on average per year.
WELL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.27%.
WELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.15% yearly.
EPS 1Y (TTM)100%
EPS 3Y-34.84%
EPS 5Y-20.29%
EPS growth Q2Q1600%
Revenue 1Y (TTM)13.27%
Revenue growth 3Y12.95%
Revenue growth 5Y7.15%
Revenue growth Q2Q15.23%
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 46.20% on average per year.
WELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.21% yearly.
EPS Next Y154.3%
EPS Next 2Y60.42%
EPS Next 3Y46.33%
EPS Next 5Y46.2%
Revenue Next Year6.51%
Revenue Next 2Y14.2%
Revenue Next 3Y10.21%
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 147.44, WELL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WELL indicates a slightly more expensive valuation: WELL is more expensive than 60.98% of the companies listed in the same industry.
WELL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.55.
Based on the Price/Forward Earnings ratio of 55.40, the valuation of WELL can be described as expensive.
WELL's Price/Forward Earnings ratio is in line with the industry average.
WELL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.44 | ||
| Fwd PE | 55.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued more expensive than 92.68% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WELL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.04 | ||
| EV/EBITDA | 28.25 |
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 46.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y60.42%
EPS Next 3Y46.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, WELL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.00, WELL's dividend is way lower than its industry peers. On top of this 80.49% of the companies listed in the same industry pay a better dividend than WELL!
Compared to an average S&P500 Dividend Yield of 2.39, WELL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
The dividend of WELL decreases each year by -11.16%.
WELL has been paying a dividend for at least 10 years, so it has a reliable track record.
WELL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.16%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
WELL pays out 370.64% of its income as dividend. This is not a sustainable payout ratio.
DP370.64%
EPS Next 2Y60.42%
EPS Next 3Y46.33%
WELLTOWER INC
NYSE:WELL (5/1/2024, 7:04:00 PM)
After market: 94.36 0 (0%)94.36
-0.92 (-0.97%)
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 Cap54.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.44 | ||
| Fwd PE | 55.4 | ||
| 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)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 1.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.94% | ||
| PM (TTM) | 5.12% | ||
| GM | 40.85% | ||
| 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 | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| 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)
Growth
EPS 1Y (TTM)100%
EPS 3Y-34.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y154.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.27%
Revenue growth 3Y12.95%
Revenue growth 5Y
Revenue growth 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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y