WELLTOWER INC (WELL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WELL • US95040Q1040
188.05 USD
+2.36 (+1.27%)
Last: Jan 30, 2026, 03:46 PM
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. WELL has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
- 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 has a Return On Assets (1.61%) which is in line with its industry peers.
- WELL has a Return On Equity (2.48%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 2.28%, WELL perfoms like the industry average, outperforming 44.35% 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 3.05%.
- 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 56.45% of its industry peers.
- WELL's Profit Margin has declined in the last couple of years.
- The Operating Margin of WELL (16.41%) is worse than 62.90% 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 40.85%, WELL is doing worse than 83.06% of the companies in the same industry.
- 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
- 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.
- WELL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.85 indicates that WELL is not in any danger for bankruptcy at the moment.
- WELL has a better Altman-Z score (3.85) than 99.19% of its industry peers.
- 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.
- 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 91.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.28
WACC8.25%
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 90.32% of its industry peers.
- A Quick Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
- The Quick ratio of WELL (2.77) is better than 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
- The earnings per share for WELL have decreased by -4.61% in the last year.
- WELL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.72% yearly.
- The Revenue has grown by 32.28% in the past year. This is a very strong growth!
- 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
- Based on estimates for the next years, WELL will show a quite strong growth in Revenue. The Revenue will grow by 18.37% on average per year.
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
- The Price/Earnings ratio is 129.69, which means the current valuation is very expensive for WELL.
- WELL's Price/Earnings ratio is a bit more expensive when compared to the industry. WELL is more expensive than 62.10% of the companies in the same industry.
- WELL is valuated expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 73.28, WELL can be considered very expensive at the moment.
- 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 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.69 | ||
| Fwd PE | 73.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WELL is valued expensively inside the industry as 94.35% 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 69.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.32 | ||
| EV/EBITDA | 37.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as WELL's earnings are expected to grow with 23.51% in the coming years.
PEG (NY)7.98
PEG (5Y)N/A
EPS Next 2Y28.25%
EPS Next 3Y23.51%
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 6.82. 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
- WELL pays out 186.03% of its income as dividend. 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 129.69 and the Price/Book (PB) ratio is 3.33.
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%.