WELLTOWER INC (WELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WELL - US95040Q1040 - REIT
187.86 USD
+0.16 (+0.09%)
187.86 USD
0 (0%)
Taking everything into account, WELL scores 5 out of 10 in our fundamental rating. WELL was compared to 127 industry peers in the Diversified REITs industry. WELL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WELL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years WELL has been profitable.
Each year in the past 5 years WELL had a positive operating cash flow.
1.2 Ratios
WELL's Return On Assets of 1.61% is in line compared to the rest of the industry. WELL outperforms 57.03% of its industry peers.
WELL has a Return On Equity (2.48%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.28%, WELL perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WELL is in line with the industry average of 3.06%.
The 3 year average ROIC (1.79%) for WELL is below the current ROIC(2.28%), indicating increased profibility in the last year.
| 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 55.47% of its industry peers.
WELL's Profit Margin has declined in the last couple of years.
WELL's Operating Margin of 16.41% is on the low side compared to the rest of the industry. WELL is outperformed by 63.28% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 40.85%, WELL is doing worse than 84.38% of the companies in the same industry.
In the last couple of years the Gross Margin of WELL has declined.
| 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.
WELL has more shares outstanding than it did 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 3.89 indicates that WELL is not in any danger for bankruptcy at the moment.
WELL's Altman-Z score of 3.89 is amongst the best of the industry. WELL outperforms 99.22% of its industry peers.
The Debt to FCF ratio of WELL is 6.09, which is on the high side as it means it would take WELL, 6.09 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WELL (6.09) is better than 96.88% of its industry peers.
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 92.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.28
WACC8.15%
2.3 Liquidity
A Current Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
WELL has a better Current ratio (2.77) than 89.84% of its industry peers.
A Quick Ratio of 2.77 indicates that WELL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.77, WELL belongs to the top of the industry, outperforming 89.84% 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%.
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.
The Revenue has grown by 32.28% in the past year. This is a very strong growth!
The Revenue has been growing by 9.31% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 22.85% on average over the next years. This is a very strong growth
Based on estimates for the next years, WELL will show a quite strong growth in Revenue. The Revenue will grow by 18.37% on average per year.
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
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 129.56, which means the current valuation is very expensive for WELL.
WELL's Price/Earnings ratio is a bit more expensive when compared to the industry. WELL is more expensive than 61.72% of the companies in the same industry.
WELL is valuated expensively when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 72.86, WELL can be considered very expensive at the moment.
WELL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.46. WELL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.56 | ||
| Fwd PE | 72.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WELL is valued more expensive than 95.31% of the companies in the same industry.
67.19% of the companies in the same industry are more expensive than WELL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.27 | ||
| EV/EBITDA | 38.17 |
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)6.89
PEG (5Y)N/A
EPS Next 2Y28.56%
EPS Next 3Y23.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, WELL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.43, WELL's dividend is way lower than its industry peers. On top of this 89.84% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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
WELL pays out 186.03% of its income as dividend. This is not a sustainable payout ratio.
DP186.03%
EPS Next 2Y28.56%
EPS Next 3Y23.91%
187.86
+0.16 (+0.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.4%
Inst Owner Change1.55%
Ins Owners0.03%
Ins Owner Change-0.03%
Market Cap128.93B
Revenue(TTM)9.91B
Net Income(TTM)960.38M
Analysts82.96
Price Target217.11 (15.57%)
Short Float %2.14%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend2.58
Dividend Growth(5Y)-6.1%
DP186.03%
Div Incr Years1
Div Non Decr Years3
Ex-Date
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)1.15%
EPS NQ rev (3m)6.44%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)5.23%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.56 | ||
| Fwd PE | 72.86 | ||
| P/S | 13.01 | ||
| P/FCF | 46.27 | ||
| P/OCF | 46.27 | ||
| P/B | 3.33 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 38.17 |
EPS(TTM)1.45
EY0.77%
EPS(NY)2.58
Fwd EY1.37%
FCF(TTM)4.06
FCFY2.16%
OCF(TTM)4.06
OCFY2.16%
SpS14.44
BVpS56.47
TBVpS56.17
PEG (NY)6.89
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 | 3.89 |
F-Score6
WACC8.15%
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.
What is the valuation status of WELLTOWER INC (WELL) stock?
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.
What is the valuation of WELLTOWER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WELLTOWER INC (WELL) is 129.56 and the Price/Book (PB) ratio is 3.33.
How financially healthy is WELLTOWER INC?
The financial health rating of WELLTOWER INC (WELL) is 8 / 10.