WELLTOWER INC (WELL) Stock Fundamental Analysis
NYSE:WELL - New York Stock Exchange, Inc. - US95040Q1040 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 130 industry peers in the Diversified REITs industry. WELL has an average financial health and profitability rating. WELL is valued quite expensive, but it does show an excellent growth.
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.
WELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.03%, WELL is doing good in the industry, outperforming 67.69% of the companies in the same industry.
WELL has a Return On Equity of 3.19%. This is in the better half of the industry: WELL outperforms 60.77% of its industry peers.
WELL's Return On Invested Capital of 1.94% is on the low side compared to the rest of the industry. WELL is outperformed by 67.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WELL is in line with the industry average of 3.16%.
The 3 year average ROIC (1.79%) for WELL is below the current ROIC(1.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 3.19% | ||
| ROIC | 1.94% |
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 has a better Profit Margin (12.65%) than 65.38% of its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
Looking at the Operating Margin, with a value of 14.45%, WELL is doing worse than 66.92% of the companies in the same industry.
In the last couple of years the Operating Margin of WELL has declined.
With a Gross Margin value of 40.03%, WELL is not doing good in the industry: 83.85% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of WELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.45% | ||
| PM (TTM) | 12.65% | ||
| GM | 40.03% |
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.89%
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
WELL has more shares outstanding than it did 5 years ago.
WELL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.19 indicates that WELL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, WELL belongs to the top of the industry, outperforming 97.69% of the companies in the same industry.
The Debt to FCF ratio of WELL is 6.47, which is on the high side as it means it would take WELL, 6.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WELL (6.47) is better than 96.15% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that WELL is not too dependend on debt financing.
WELL has a Debt to Equity ratio of 0.47. This is amongst the best in the industry. WELL outperforms 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.23
WACC8.61%
2.3 Liquidity
WELL has a Current Ratio of 1.77. This is a normal value and indicates that WELL is financially healthy and should not expect problems in meeting its short term obligations.
WELL's Current ratio of 1.77 is fine compared to the rest of the industry. WELL outperforms 73.85% of its industry peers.
A Quick Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
WELL's Quick ratio of 1.77 is fine compared to the rest of the industry. WELL outperforms 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
WELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 114.81%, which is quite impressive.
Measured over the past years, WELL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.72% on average per year.
Looking at the last year, WELL shows a very strong growth in Revenue. The Revenue has grown by 23.32%.
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)114.81%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%81.82%
Revenue 1Y (TTM)23.32%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.29%
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 20.90% on average per year.
The Revenue is expected to grow by 17.75% on average over the next years. This is quite good.
EPS Next Y17.55%
EPS Next 2Y23.02%
EPS Next 3Y22.71%
EPS Next 5Y20.9%
Revenue Next Year27.69%
Revenue Next 2Y19.59%
Revenue Next 3Y16.75%
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.
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 88.35.
WELL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.15, WELL is valued quite expensively.
The Price/Forward Earnings ratio is 65.12, which means the current valuation is very expensive for WELL.
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 21.60, WELL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.35 | ||
| Fwd PE | 65.12 |
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 95.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WELL is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.06 | ||
| EV/EBITDA | 37.16 |
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 22.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.04
PEG (5Y)N/A
EPS Next 2Y23.02%
EPS Next 3Y22.71%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.75%.
With a Dividend Yield of 1.75, WELL pays less dividend than the industry average, which is at 6.64. 86.15% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of WELL decreases each year by -6.09%.
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)-6.09%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
150.16% of the earnings are spent on dividend by WELL. This is not a sustainable payout ratio.
DP150.16%
EPS Next 2Y23.02%
EPS Next 3Y22.71%
153.73
+1.6 (+1.05%)
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 Change3.21%
Ins Owners0.04%
Ins Owner Change1.16%
Market Cap100.53B
Analysts84
Price Target174.06 (13.22%)
Short Float %1.72%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.09%
DP150.16%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.98%
Min EPS beat(2)-54.71%
Max EPS beat(2)-1.25%
EPS beat(4)2
Avg EPS beat(4)13.68%
Min EPS beat(4)-54.71%
Max EPS beat(4)90%
EPS beat(8)4
Avg EPS beat(8)5.28%
EPS beat(12)5
Avg EPS beat(12)-18.88%
EPS beat(16)6
Avg EPS beat(16)-12.47%
Revenue beat(2)2
Avg Revenue beat(2)2.58%
Min Revenue beat(2)1.3%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)3.87%
Revenue beat(8)6
Avg Revenue beat(8)1.41%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)1.49%
PT rev (1m)1.54%
PT rev (3m)8.35%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)-2.35%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)3.75%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.35 | ||
| Fwd PE | 65.12 | ||
| P/S | 11.75 | ||
| P/FCF | 41.06 | ||
| P/OCF | 41.06 | ||
| P/B | 2.96 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 37.16 |
EPS(TTM)1.74
EY1.13%
EPS(NY)2.36
Fwd EY1.54%
FCF(TTM)3.74
FCFY2.44%
OCF(TTM)3.74
OCFY2.44%
SpS13.08
BVpS51.93
TBVpS51.62
PEG (NY)5.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 3.19% | ||
| ROCE | 2.45% | ||
| ROIC | 1.94% | ||
| ROICexc | 2.08% | ||
| ROICexgc | 2.09% | ||
| OM | 14.45% | ||
| PM (TTM) | 12.65% | ||
| GM | 40.03% | ||
| FCFM | 28.62% |
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 3Y4.48%
ROICexc growth 5Y-7.26%
OM growth 3Y-2.84%
OM growth 5Y-9.14%
PM growth 3Y18.89%
PM growth 5Y-13.12%
GM growth 3Y-1.59%
GM growth 5Y-3.55%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 5.21 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 80.62% | ||
| Profit Quality | 226.2% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 3.19 |
F-Score6
WACC8.61%
ROIC/WACC0.23
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)549.7%
Profit Quality(5y)433.6%
High Growth Momentum
Growth
EPS 1Y (TTM)114.81%
EPS 3Y25.99%
EPS 5Y-10.72%
EPS Q2Q%81.82%
EPS Next Y17.55%
EPS Next 2Y23.02%
EPS Next 3Y22.71%
EPS Next 5Y20.9%
Revenue 1Y (TTM)23.32%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.29%
Revenue Next Year27.69%
Revenue Next 2Y19.59%
Revenue Next 3Y16.75%
Revenue Next 5Y17.75%
EBIT growth 1Y9.94%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year200.24%
EBIT Next 3Y57.73%
EBIT Next 5Y34.03%
FCF growth 1Y77.39%
FCF growth 3Y20.95%
FCF growth 5Y8%
OCF growth 1Y77.39%
OCF growth 3Y20.95%
OCF growth 5Y8%