WELLTOWER INC (WELL) Stock Fundamental Analysis
NYSE:WELL - US95040Q1040 - REIT
164.43 USD
-2.51 (-1.5%)
164.43 USD
0 (0%)
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. WELL has only an average score on both its financial health and profitability. WELL is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year WELL was profitable.
WELL had a positive operating cash flow in the past year.
Each year in the past 5 years WELL has been profitable.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.02%, WELL is doing good in the industry, outperforming 65.89% of the companies in the same industry.
WELL has a Return On Equity of 3.15%. This is comparable to the rest of the industry: WELL outperforms 55.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.21%, WELL is in line with its industry, outperforming 43.41% 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 3 year average ROIC (1.79%) for WELL is below the current ROIC(2.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 3.15% | ||
| ROIC | 2.21% |
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 decent Profit Margin value of 12.18%, WELL is doing good in the industry, outperforming 64.34% of the companies in the same industry.
In the last couple of years the Profit Margin of WELL has declined.
WELL has a worse Operating Margin (15.88%) than 63.57% of its industry peers.
In the last couple of years the Operating Margin of WELL has declined.
Looking at the Gross Margin, with a value of 40.56%, WELL is doing worse than 83.72% of the companies in the same industry.
WELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.88% | ||
| PM (TTM) | 12.18% | ||
| GM | 40.56% |
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.
WELL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WELL has more shares outstanding
The debt/assets ratio for WELL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.41 indicates that WELL is not in any danger for bankruptcy at the moment.
WELL has a better Altman-Z score (3.41) than 97.67% of its industry peers.
The Debt to FCF ratio of WELL is 6.15, which is on the high side as it means it would take WELL, 6.15 years of fcf income to pay off all of its debts.
WELL's Debt to FCF ratio of 6.15 is amongst the best of the industry. WELL outperforms 96.12% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that WELL is not too dependend on debt financing.
The Debt to Equity ratio of WELL (0.45) is better than 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.15 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.27
WACC8.16%
2.3 Liquidity
WELL has a Current Ratio of 1.92. This is a normal value and indicates that WELL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.92, WELL is in the better half of the industry, outperforming 78.29% of the companies in the same industry.
WELL has a Quick Ratio of 1.92. This is a normal value and indicates that WELL is financially healthy and should not expect problems in meeting its short term obligations.
WELL has a better Quick ratio (1.92) than 78.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.84% over the past year.
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 30.74%.
The Revenue has been growing by 9.31% on average over the past years. This is quite good.
EPS 1Y (TTM)71.84%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%7.14%
Revenue 1Y (TTM)30.74%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%39.64%
3.2 Future
WELL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.90% yearly.
Based on estimates for the next years, WELL will show a quite strong growth in Revenue. The Revenue will grow by 18.76% on average per year.
EPS Next Y20.8%
EPS Next 2Y24.48%
EPS Next 3Y24.69%
EPS Next 5Y20.9%
Revenue Next Year29.36%
Revenue Next 2Y21.19%
Revenue Next 3Y18.4%
Revenue Next 5Y18.76%
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
With a Price/Earnings ratio of 92.90, WELL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WELL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.24, WELL is valued quite expensively.
With a Price/Forward Earnings ratio of 68.02, WELL can be considered very expensive at the moment.
WELL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WELL to the average of the S&P500 Index (22.81), we can say WELL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.9 | ||
| Fwd PE | 68.02 |
4.2 Price Multiples
95.35% of the companies in the same industry are cheaper than WELL, based on the Enterprise Value to EBITDA ratio.
WELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WELL is cheaper than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.08 | ||
| EV/EBITDA | 35.93 |
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 24.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.47
PEG (5Y)N/A
EPS Next 2Y24.48%
EPS Next 3Y24.69%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.74, WELL pays less dividend than the industry average, which is at 6.31. 88.37% of the companies listed in the same industry pay a better dividend than WELL!
WELL's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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
150.35% of the earnings are spent on dividend by WELL. This is not a sustainable payout ratio.
DP150.35%
EPS Next 2Y24.48%
EPS Next 3Y24.69%
164.43
-2.51 (-1.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.13%
Inst Owner Change1.36%
Ins Owners0.03%
Ins Owner Change0.64%
Market Cap109.98B
Analysts83.2
Price Target181.68 (10.49%)
Short Float %1.53%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.1%
DP150.35%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.22%
Min EPS beat(2)-3.19%
Max EPS beat(2)-1.25%
EPS beat(4)1
Avg EPS beat(4)7.71%
Min EPS beat(4)-54.71%
Max EPS beat(4)90%
EPS beat(8)3
Avg EPS beat(8)2.19%
EPS beat(12)4
Avg EPS beat(12)-19.83%
EPS beat(16)6
Avg EPS beat(16)-10.02%
Revenue beat(2)2
Avg Revenue beat(2)1.94%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.59%
Revenue beat(4)4
Avg Revenue beat(4)2.52%
Min Revenue beat(4)1.3%
Max Revenue beat(4)3.87%
Revenue beat(8)6
Avg Revenue beat(8)1.41%
Revenue beat(12)7
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)1.49%
PT rev (1m)4.12%
PT rev (3m)5.99%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)3.45%
EPS NY rev (1m)0.61%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)7.4%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.9 | ||
| Fwd PE | 68.02 | ||
| P/S | 11.85 | ||
| P/FCF | 42.08 | ||
| P/OCF | 42.08 | ||
| P/B | 3.06 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 35.93 |
EPS(TTM)1.77
EY1.08%
EPS(NY)2.42
Fwd EY1.47%
FCF(TTM)3.91
FCFY2.38%
OCF(TTM)3.91
OCFY2.38%
SpS13.87
BVpS53.68
TBVpS53.36
PEG (NY)4.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 3.15% | ||
| ROCE | 2.8% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.42% | ||
| OM | 15.88% | ||
| PM (TTM) | 12.18% | ||
| GM | 40.56% | ||
| FCFM | 28.17% |
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%
ROICexcg growth 3Y4.53%
ROICexcg 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 | 0.45 | ||
| Debt/FCF | 6.15 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 77.19% | ||
| Profit Quality | 231.32% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 3.41 |
F-Score6
WACC8.16%
ROIC/WACC0.27
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)71.84%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%7.14%
EPS Next Y20.8%
EPS Next 2Y24.48%
EPS Next 3Y24.69%
EPS Next 5Y20.9%
Revenue 1Y (TTM)30.74%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%39.64%
Revenue Next Year29.36%
Revenue Next 2Y21.19%
Revenue Next 3Y18.4%
Revenue Next 5Y18.76%
EBIT growth 1Y41.7%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year207.04%
EBIT Next 3Y60.22%
EBIT Next 5Y34.03%
FCF growth 1Y86.43%
FCF growth 3Y20.95%
FCF growth 5Y8%
OCF growth 1Y86.43%
OCF growth 3Y20.95%
OCF growth 5Y8%