Welltower Inc.
Welltower Inc. Fundamental Analysis
Welltower Inc. (WELL) shows moderate financial fundamentals with a PE ratio of 107.19, profit margin of 12.15%, and ROE of 3.51%. The company generates $11.7B in annual revenue with strong year-over-year growth of 35.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WELL's fundamental strength across five key dimensions:
Efficiency Score
WeakWELL struggles to generate sufficient returns from assets.
Valuation Score
WeakWELL trades at a premium to fair value.
Growth Score
ModerateWELL shows steady but slowing expansion.
Financial Health Score
ExcellentWELL maintains a strong and stable balance sheet.
Profitability Score
WeakWELL struggles to sustain strong margins.
Key Financial Metrics
Is WELL Expensive or Cheap?
P/E Ratio
WELL trades at 107.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WELL's PEG of 6.25 indicates potential overvaluation.
Price to Book
The market values Welltower Inc. at 3.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 51.91 times EBITDA. This signals the market has high growth expectations.
How Well Does WELL Make Money?
Net Profit Margin
For every $100 in sales, Welltower Inc. keeps $12.15 as profit after all expenses.
Operating Margin
Core operations generate 4.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.51 in profit for every $100 of shareholder equity.
ROA
Welltower Inc. generates $2.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Welltower Inc. generates strong operating cash flow of $2.98B, reflecting robust business health.
Free Cash Flow
Welltower Inc. generates strong free cash flow of $2.56B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.63 in free cash annually.
FCF Yield
WELL converts 1.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
107.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How WELL Stacks Against Its Sector Peers
| Metric | WELL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 107.19 | 23.46 | Worse (Expensive) |
| ROE | 3.51% | 662.00% | Weak |
| Net Margin | 12.15% | 1977.00% | Weak |
| Debt/Equity | 0.46 | -16.98 (disorted) | Distorted |
| Current Ratio | 3.20 | 23.42 | Strong Liquidity |
| ROA | 2.09% | -758.00% (disorted) | Weak |
WELL outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Welltower Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.16%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-40.26%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
31.79%
Industry Style: Income, Inflation Hedge, REIT
High Growth