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 shows excellent growth, but is valued quite expensive already.
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
With a decent Return On Assets value of 2.03%, WELL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 3.19%, WELL is doing good in the industry, outperforming 60.47% of the companies in the same industry.
WELL has a Return On Invested Capital of 1.94%. This is in the lower half of the industry: WELL underperforms 68.22% of its industry peers.
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 3.15%.
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
WELL has a better Profit Margin (12.65%) than 65.12% of its industry peers.
In the last couple of years the Profit Margin of WELL has declined.
WELL's Operating Margin of 14.45% is on the low side compared to the rest of the industry. WELL is outperformed by 66.67% of its industry peers.
WELL's Operating Margin has declined in the last couple of years.
WELL has a worse Gross Margin (40.03%) than 84.50% of its industry peers.
WELL's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for WELL has been increased compared to 1 year ago.
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 3.13 indicates that WELL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.13, WELL belongs to the best of the industry, outperforming 96.90% of the companies in the same industry.
WELL has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as WELL would need 6.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.47, WELL belongs to the top of the industry, outperforming 96.12% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that WELL is not too dependend on debt financing.
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 | 3.13 |
ROIC/WACC0.23
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.77 indicates that WELL should not have too much problems paying its short term obligations.
WELL has a better Current ratio (1.77) than 75.19% of its industry peers.
WELL has a Quick 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 has a Quick ratio of 1.77. This is in the better half of the industry: WELL outperforms 75.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 114.81% over the past year.
WELL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.72% yearly.
The Revenue has grown by 23.32% 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)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
The Earnings Per Share is expected to grow by 20.03% 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 14.88% on average per year.
EPS Next Y20.38%
EPS Next 2Y23.63%
EPS Next 3Y23.54%
EPS Next 5Y20.03%
Revenue Next Year26.34%
Revenue Next 2Y18.81%
Revenue Next 3Y15.99%
Revenue Next 5Y14.88%
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
With a Price/Earnings ratio of 86.44, WELL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WELL.
Compared to an average S&P500 Price/Earnings ratio of 26.60, WELL is valued quite expensively.
A Price/Forward Earnings ratio of 63.08 indicates a quite expensive valuation of WELL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WELL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, WELL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.44 | ||
| Fwd PE | 63.08 |
4.2 Price Multiples
WELL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WELL is more expensive than 94.57% of the companies in the same industry.
65.12% 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 | 40.17 | ||
| EV/EBITDA | 36.62 |
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 23.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.24
PEG (5Y)N/A
EPS Next 2Y23.63%
EPS Next 3Y23.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, WELL has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.82, WELL pays less dividend than the industry average, which is at 6.62. 86.05% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 2Y23.63%
EPS Next 3Y23.54%
NYSE:WELL (5/21/2025, 1:04:19 PM)
150.41
-0.81 (-0.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.52%
Inst Owner Change3.03%
Ins Owners0.04%
Ins Owner Change0.91%
Market Cap98.36B
Analysts84
Price Target171.42 (13.97%)
Short Float %1.81%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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)0.7%
PT rev (3m)12.62%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-2.18%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)1.15%
Revenue NY rev (3m)9.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.44 | ||
| Fwd PE | 63.08 | ||
| P/S | 11.5 | ||
| P/FCF | 40.17 | ||
| P/OCF | 40.17 | ||
| P/B | 2.9 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 36.62 |
EPS(TTM)1.74
EY1.16%
EPS(NY)2.38
Fwd EY1.59%
FCF(TTM)3.74
FCFY2.49%
OCF(TTM)3.74
OCFY2.49%
SpS13.08
BVpS51.93
TBVpS51.62
PEG (NY)4.24
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 | 3.13 |
F-Score6
WACC8.26%
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 5Y20.03%
Revenue 1Y (TTM)23.32%
Revenue growth 3Y19%
Revenue growth 5Y9.31%
Sales Q2Q%30.29%
Revenue Next Year26.34%
Revenue Next 2Y18.81%
Revenue Next 3Y15.99%
Revenue Next 5Y14.88%
EBIT growth 1Y9.94%
EBIT growth 3Y15.62%
EBIT growth 5Y-0.68%
EBIT Next Year195.07%
EBIT Next 3Y55.25%
EBIT Next 5Y31.83%
FCF growth 1Y77.39%
FCF growth 3Y20.95%
FCF growth 5Y8%
OCF growth 1Y77.39%
OCF growth 3Y20.95%
OCF growth 5Y8%