WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - NYSE:WELL - US95040Q1040 - REIT
175.04 USD
-0.46 (-0.26%)
175.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WELL. WELL was compared to 129 industry peers in the Diversified REITs industry. Both the profitability and the financial health of WELL get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years WELL always reported a positive cash flow from operatings.
1.2 Ratios
WELL has a better Return On Assets (2.02%) than 65.89% of its industry peers.
WELL has a Return On Equity of 3.15%. This is comparable to the rest of the industry: WELL outperforms 55.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.21%, WELL is in line with its industry, outperforming 43.41% 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 3.04%.
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 has a Profit Margin of 12.18%. This is in the better half of the industry: WELL outperforms 64.34% of its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
WELL has a Operating Margin of 15.88%. This is in the lower half of the industry: WELL underperforms 63.57% of its industry peers.
In the last couple of years the Operating Margin of WELL has declined.
WELL has a Gross Margin of 40.56%. This is amonst the worse of the industry: WELL underperforms 83.72% of its industry peers.
In the last couple of years the Gross Margin of WELL has declined.
| 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.
The debt/assets ratio for WELL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.64 indicates that WELL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.64, WELL belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.15, WELL belongs to the top of the industry, outperforming 96.12% 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 Debt to Equity ratio of 0.45. This is amongst the best in the industry. WELL outperforms 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.15 | ||
| Altman-Z | 3.64 |
ROIC/WACC0.27
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.92 indicates that WELL should not have too much problems paying its short term obligations.
WELL has a Current ratio of 1.92. This is in the better half of the industry: WELL outperforms 78.29% 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 better Quick ratio (1.92) than 78.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.84% over the past year.
The earnings per share for WELL have been decreasing by -10.72% on average. This is quite bad
WELL shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.74%.
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
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.
WELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.76% yearly.
EPS Next Y22.19%
EPS Next 2Y26.65%
EPS Next 3Y26.09%
EPS Next 5Y20.9%
Revenue Next Year29.79%
Revenue Next 2Y21.45%
Revenue Next 3Y18.92%
Revenue Next 5Y18.76%
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
Based on the Price/Earnings ratio of 98.89, the valuation of WELL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as WELL.
When comparing the Price/Earnings ratio of WELL to the average of the S&P500 Index (27.86), we can say WELL is valued expensively.
Based on the Price/Forward Earnings ratio of 69.95, the valuation of WELL can be described as expensive.
WELL's Price/Forward Earnings ratio is in line with the industry average.
WELL is valuated expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.89 | ||
| Fwd PE | 69.95 |
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 95.35% 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 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.8 | ||
| EV/EBITDA | 38.12 |
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 26.09% in the coming years.
PEG (NY)4.46
PEG (5Y)N/A
EPS Next 2Y26.65%
EPS Next 3Y26.09%
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 6.41. 89.92% of the companies listed in the same industry pay a better dividend than WELL!
Compared to the average S&P500 Dividend Yield of 2.41, WELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
WELL pays out 150.35% of its income as dividend. This is not a sustainable payout ratio.
DP150.35%
EPS Next 2Y26.65%
EPS Next 3Y26.09%
175.04
-0.46 (-0.26%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change1.09%
Ins Owners0.03%
Ins Owner Change-0.03%
Market Cap117.07B
Analysts83.2
Price Target185.88 (6.19%)
Short Float %1.84%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)2.31%
PT rev (3m)6.79%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)1.15%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.89 | ||
| Fwd PE | 69.95 | ||
| P/S | 12.62 | ||
| P/FCF | 44.8 | ||
| P/OCF | 44.8 | ||
| P/B | 3.26 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 38.12 |
EPS(TTM)1.77
EY1.01%
EPS(NY)2.5
Fwd EY1.43%
FCF(TTM)3.91
FCFY2.23%
OCF(TTM)3.91
OCFY2.23%
SpS13.87
BVpS53.68
TBVpS53.36
PEG (NY)4.46
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 | 3.64 |
F-Score6
WACC8.08%
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 Y22.19%
EPS Next 2Y26.65%
EPS Next 3Y26.09%
EPS Next 5Y20.9%
Revenue 1Y (TTM)30.74%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%39.64%
Revenue Next Year29.79%
Revenue Next 2Y21.45%
Revenue Next 3Y18.92%
Revenue Next 5Y18.76%
EBIT growth 1Y41.7%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year208.76%
EBIT Next 3Y61.6%
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%