WELLTOWER INC (WELL) Stock Fundamental Analysis
NYSE:WELL - New York Stock Exchange, Inc. - US95040Q1040 - REIT - Currency: USD
Overall WELL gets a fundamental rating of 5 out of 10. We evaluated WELL against 130 industry peers in the Diversified REITs industry. WELL has only an average score on both its financial health and profitability. WELL shows excellent growth, but is valued quite expensive already.
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.
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's Return On Assets of 2.02% is fine compared to the rest of the industry. WELL outperforms 67.69% of its industry peers.
WELL has a better Return On Equity (3.15%) than 60.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.21%, WELL is doing worse than 60.00% 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 3.16%.
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
WELL's Profit Margin of 12.18% is fine compared to the rest of the industry. WELL outperforms 64.62% of its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
With a Operating Margin value of 15.88%, WELL is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
WELL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 40.56%, WELL is not doing good in the industry: 83.85% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, WELL has more shares outstanding
The number of shares outstanding for WELL has been increased compared to 5 years ago.
Compared to 1 year ago, WELL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.45 indicates that WELL is not in any danger for bankruptcy at the moment.
WELL has a Altman-Z score of 3.45. This is amongst the best in the industry. WELL outperforms 97.69% 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.
With an excellent Debt to FCF ratio value of 6.15, WELL belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that WELL is not too dependend on debt financing.
WELL has a better Debt to Equity ratio (0.45) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.15 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.27
WACC8.14%
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.
The Current ratio of WELL (1.92) is better than 79.23% of its industry peers.
A Quick Ratio of 1.92 indicates that WELL should not have too much problems paying its short term obligations.
WELL has a Quick ratio of 1.92. This is in the better half of the industry: WELL outperforms 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
WELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.84%, which is quite impressive.
The earnings per share for WELL have been decreasing by -10.72% on average. This is quite bad
The Revenue has grown by 30.74% 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)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.
The Revenue is expected to grow by 17.75% on average over the next years. This is quite good.
EPS Next Y20.06%
EPS Next 2Y23.99%
EPS Next 3Y23.63%
EPS Next 5Y20.9%
Revenue Next Year27.44%
Revenue Next 2Y19.5%
Revenue Next 3Y16.73%
Revenue Next 5Y17.75%
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 93.92, which means the current valuation is very expensive for WELL.
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 26.82, WELL is valued quite expensively.
WELL is valuated quite expensively with a Price/Forward Earnings ratio of 69.32.
The rest of the industry has a similar Price/Forward Earnings ratio as WELL.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, WELL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.92 | ||
| Fwd PE | 69.32 |
4.2 Price Multiples
WELL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WELL is more expensive than 95.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WELL indicates a somewhat cheap valuation: WELL is cheaper than 64.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.55 | ||
| EV/EBITDA | 36.29 |
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.
A more expensive valuation may be justified as WELL's earnings are expected to grow with 23.63% in the coming years.
PEG (NY)4.68
PEG (5Y)N/A
EPS Next 2Y23.99%
EPS Next 3Y23.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, WELL has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.79, WELL pays less dividend than the industry average, which is at 6.45. 86.92% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of WELL decreases each year by -6.10%.
WELL has been paying a dividend for at least 10 years, so it has 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 2Y23.99%
EPS Next 3Y23.63%
166.24
+1.17 (+0.71%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.14%
Inst Owner Change0.06%
Ins Owners0.04%
Ins Owner Change1.19%
Market Cap111.19B
Analysts84
Price Target174.48 (4.96%)
Short Float %1.54%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)0.24%
PT rev (3m)2.58%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)3.15%
EPS NY rev (1m)2.14%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)6.12%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.92 | ||
| Fwd PE | 69.32 | ||
| P/S | 11.98 | ||
| P/FCF | 42.55 | ||
| P/OCF | 42.55 | ||
| P/B | 3.1 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 36.29 |
EPS(TTM)1.77
EY1.06%
EPS(NY)2.4
Fwd EY1.44%
FCF(TTM)3.91
FCFY2.35%
OCF(TTM)3.91
OCFY2.35%
SpS13.87
BVpS53.68
TBVpS53.36
PEG (NY)4.68
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 | 3.45 |
F-Score6
WACC8.14%
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 Y20.06%
EPS Next 2Y23.99%
EPS Next 3Y23.63%
EPS Next 5Y20.9%
Revenue 1Y (TTM)30.74%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%39.64%
Revenue Next Year27.44%
Revenue Next 2Y19.5%
Revenue Next 3Y16.73%
Revenue Next 5Y17.75%
EBIT growth 1Y41.7%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year200.24%
EBIT Next 3Y57.73%
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%