WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
185.65 USD
-0.01 (-0.01%)
185.65 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 127 industry peers in the Diversified REITs industry. WELL has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, WELL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WELL was profitable.
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
The Return On Assets of WELL (1.61%) is comparable to the rest of the industry.
WELL's Return On Equity of 2.48% is in line compared to the rest of the industry. WELL outperforms 53.54% of its industry peers.
WELL's Return On Invested Capital of 2.28% is in line compared to the rest of the industry. WELL outperforms 44.09% of its industry peers.
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 55.91% 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 62.99% of the companies in the same industry.
In the last couple of years the Operating Margin of WELL has declined.
WELL's Gross Margin of 40.85% is on the low side compared to the rest of the industry. WELL is outperformed by 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.
WELL has more shares outstanding than it did 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
WELL has an Altman-Z score of 3.85. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WELL (3.85) is better than 99.21% 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.
Looking at the Debt to FCF ratio, with a value of 6.09, WELL belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
WELL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
WELL's Debt to Equity ratio of 0.44 is amongst the best of the industry. WELL outperforms 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.28
WACC8.18%
2.3 Liquidity
A Current Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
WELL's Current ratio of 2.77 is amongst the best of the industry. WELL outperforms 90.55% 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.
With an excellent Quick ratio value of 2.77, WELL belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
| 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.
The Revenue has grown by 32.28% in the past year. This is a very strong growth!
WELL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.31% yearly.
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.
The Revenue is expected to grow by 18.37% on average over the next years. This is quite good.
EPS Next Y18.81%
EPS Next 2Y28.56%
EPS Next 3Y23.91%
EPS Next 5Y22.85%
Revenue Next Year32.67%
Revenue Next 2Y25.03%
Revenue Next 3Y20.52%
Revenue Next 5Y18.37%
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 128.03, WELL can be considered very expensive at the moment.
61.42% of the companies in the same industry are cheaper than WELL, based on the Price/Earnings ratio.
WELL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.92.
WELL is valuated quite expensively with a Price/Forward Earnings ratio of 72.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WELL is on the same level as its industry peers.
WELL is valuated expensively when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.03 | ||
| Fwd PE | 72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WELL indicates a rather expensive valuation: WELL more expensive than 94.49% of the companies listed in the same industry.
WELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WELL is cheaper than 66.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.73 | ||
| EV/EBITDA | 37.75 |
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.
WELL's earnings are expected to grow with 23.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.81
PEG (5Y)N/A
EPS Next 2Y28.56%
EPS Next 3Y23.91%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.59, WELL pays less dividend than the industry average, which is at 6.83. 88.98% 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 2Y28.56%
EPS Next 3Y23.91%
185.65
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.26%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change-0.03%
Market Cap127.42B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.96
Price Target217.11 (16.95%)
Short Float %1.77%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.1%
DP186.03%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
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)6.77%
PT rev (3m)16.8%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)6.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)5.23%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.03 | ||
| Fwd PE | 72 | ||
| P/S | 12.86 | ||
| P/FCF | 45.73 | ||
| P/OCF | 45.73 | ||
| P/B | 3.29 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 37.75 |
EPS(TTM)1.45
EY0.78%
EPS(NY)2.58
Fwd EY1.39%
FCF(TTM)4.06
FCFY2.19%
OCF(TTM)4.06
OCFY2.19%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.81
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 | 3.85 |
F-Score6
WACC8.18%
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 Y18.81%
EPS Next 2Y28.56%
EPS Next 3Y23.91%
EPS Next 5Y22.85%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.65%
Revenue Next Year32.67%
Revenue Next 2Y25.03%
Revenue Next 3Y20.52%
Revenue Next 5Y18.37%
EBIT growth 1Y42.97%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year202.35%
EBIT Next 3Y63.98%
EBIT Next 5Y38.63%
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.
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 128.03 and the Price/Book (PB) ratio is 3.29.
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%.