WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - NYSE:WELL - US95040Q1040 - REIT
181.04 USD
+0.16 (+0.09%)
181.04 USD
0 (0%)
Overall WELL gets a fundamental rating of 5 out of 10. We evaluated WELL against 127 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.
WELL had a positive operating cash flow in the past year.
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 comparable to the rest of the industry.
The Return On Equity of WELL (2.48%) is comparable to the rest of the industry.
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 3.04%.
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
With a Profit Margin value of 9.69%, WELL perfoms like the industry average, outperforming 55.12% 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 (16.41%) than 63.78% of its industry peers.
In the last couple of years the Operating Margin of WELL has declined.
The Gross Margin of WELL (40.85%) is worse than 83.46% 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.
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 3.66. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.66, WELL belongs to the top of the industry, outperforming 98.43% 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 96.85% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that WELL is not too dependend on debt financing.
The Debt to Equity ratio of WELL (0.44) is better than 91.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.66 |
ROIC/WACC0.28
WACC8.09%
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.
Looking at the Current ratio, with a value of 2.77, WELL belongs to the top of the industry, outperforming 88.19% 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.
The Quick ratio of WELL (2.77) is better than 88.19% 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
WELL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.62% yearly.
The Revenue is expected to grow by 18.76% on average over the next years. This is quite good.
EPS Next Y24.64%
EPS Next 2Y28.11%
EPS Next 3Y25.78%
EPS Next 5Y22.62%
Revenue Next Year30.67%
Revenue Next 2Y22.05%
Revenue Next 3Y18.85%
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.
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
WELL is valuated quite expensively with a Price/Earnings ratio of 124.86.
WELL's Price/Earnings ratio is a bit more expensive when compared to the industry. WELL is more expensive than 60.63% of the companies in the same industry.
WELL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.10.
A Price/Forward Earnings ratio of 70.71 indicates a quite expensive valuation of WELL.
WELL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.52. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 124.86 | ||
| Fwd PE | 70.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued expensively inside the industry as 95.28% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than 66.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.45 | ||
| EV/EBITDA | 35.99 |
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 25.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.07
PEG (5Y)N/A
EPS Next 2Y28.11%
EPS Next 3Y25.78%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.67, WELL pays less dividend than the industry average, which is at 6.35. 88.19% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.35, WELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 2Y28.11%
EPS Next 3Y25.78%
181.04
+0.16 (+0.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change0.1%
Ins Owners0.03%
Ins Owner Change-0.03%
Market Cap121.08B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.96
Price Target193.37 (6.81%)
Short Float %1.64%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)2.68%
PT rev (3m)9.38%
EPS NQ rev (1m)3.91%
EPS NQ rev (3m)4.8%
EPS NY rev (1m)2.01%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)3.25%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 124.86 | ||
| Fwd PE | 70.71 | ||
| P/S | 12.22 | ||
| P/FCF | 43.45 | ||
| P/OCF | 43.45 | ||
| P/B | 3.12 | ||
| P/tB | 3.14 | ||
| EV/EBITDA | 35.99 |
EPS(TTM)1.45
EY0.8%
EPS(NY)2.56
Fwd EY1.41%
FCF(TTM)4.17
FCFY2.3%
OCF(TTM)4.17
OCFY2.3%
SpS14.81
BVpS57.95
TBVpS57.64
PEG (NY)5.07
PEG (5Y)N/A
Graham Number43.48
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 | 3.66 |
F-Score6
WACC8.09%
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 Y24.64%
EPS Next 2Y28.11%
EPS Next 3Y25.78%
EPS Next 5Y22.62%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year30.67%
Revenue Next 2Y22.05%
Revenue Next 3Y18.85%
Revenue Next 5Y18.76%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year210.09%
EBIT Next 3Y61.6%
EBIT Next 5Y35.33%
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 124.86 and the Price/Book (PB) ratio is 3.12.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.