WELLTOWER INC (WELL) Stock Fundamental Analysis
NYSE:WELL - New York Stock Exchange, Inc. - US95040Q1040 - REIT - Currency: USD
WELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. WELL has only an average score on both its financial health and profitability. WELL is valued quite expensively, but it does show have an excellent growth rating.
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.
WELL had positive earnings in each of the past 5 years.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
WELL has a better Return On Assets (2.03%) than 67.44% of its industry peers.
WELL has a better Return On Equity (3.19%) than 60.47% of its industry peers.
WELL has a worse Return On Invested Capital (1.94%) than 67.44% 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 3.15%.
The last Return On Invested Capital (1.94%) for WELL is above the 3 year average (1.79%), which is a sign of increasing profitability.
| 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
The Profit Margin of WELL (12.65%) is better than 65.12% 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 66.67% of the companies in the same industry.
WELL's Operating Margin has declined in the last couple of years.
WELL has a worse Gross Margin (40.03%) than 83.72% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WELL is destroying value.
The number of shares outstanding for WELL has been increased compared to 1 year ago.
Compared to 5 years ago, WELL has more shares outstanding
WELL has a better debt/assets ratio than last year.
2.2 Solvency
WELL has an Altman-Z score of 3.16. This indicates that WELL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.16, WELL belongs to the best of the industry, outperforming 96.90% 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.
With an excellent Debt to FCF ratio value of 6.47, WELL belongs to the best of the industry, outperforming 96.12% of the companies in the same industry.
WELL has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
WELL's Debt to Equity ratio of 0.47 is amongst the best of the industry. WELL outperforms 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.23
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.77, WELL is doing good in the industry, outperforming 74.42% of the companies in the same industry.
A Quick Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
WELL has a Quick ratio of 1.77. This is in the better half of the industry: WELL outperforms 75.19% 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 Y20.38%
EPS Next 2Y23.63%
EPS Next 3Y23.54%
EPS Next 5Y20.9%
Revenue Next Year27.7%
Revenue Next 2Y19.66%
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.
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
A Price/Earnings ratio of 87.59 indicates a quite expensive valuation of WELL.
WELL's Price/Earnings is on the same level as the industry average.
WELL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 63.91 indicates a quite expensive valuation of WELL.
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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.59 | ||
| Fwd PE | 63.91 |
4.2 Price Multiples
95.35% of the companies in the same industry are cheaper than WELL, based on the Enterprise Value to EBITDA ratio.
WELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WELL is cheaper than 65.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.7 | ||
| EV/EBITDA | 36.87 |
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 23.54% in the coming years.
PEG (NY)4.3
PEG (5Y)N/A
EPS Next 2Y23.63%
EPS Next 3Y23.54%
5. Dividend
5.1 Amount
WELL has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.77, WELL's dividend is way lower than its industry peers. On top of this 86.82% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of WELL decreases each year by -6.09%.
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)-6.09%
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 2Y23.63%
EPS Next 3Y23.54%
152.4
+0.49 (+0.32%)
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 Change1.21%
Market Cap99.66B
Analysts84
Price Target172.5 (13.19%)
Short Float %1.93%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)0.63%
PT rev (3m)7.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)5.42%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.59 | ||
| Fwd PE | 63.91 | ||
| P/S | 11.65 | ||
| P/FCF | 40.7 | ||
| P/OCF | 40.7 | ||
| P/B | 2.93 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 36.87 |
EPS(TTM)1.74
EY1.14%
EPS(NY)2.38
Fwd EY1.56%
FCF(TTM)3.74
FCFY2.46%
OCF(TTM)3.74
OCFY2.46%
SpS13.08
BVpS51.93
TBVpS51.62
PEG (NY)4.3
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 | 3.16 |
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 Y20.38%
EPS Next 2Y23.63%
EPS Next 3Y23.54%
EPS Next 5Y20.9%
Revenue 1Y (TTM)23.32%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.29%
Revenue Next Year27.7%
Revenue Next 2Y19.66%
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%