NYSE:WELL

Stock Analysis Report

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Executive Summary

Welltower Inc. (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. More Details


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

How has Welltower's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WELL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

WELL

-3.5%

US REITs

-2.4%

US Market


1 Year Return

-42.8%

WELL

-16.4%

US REITs

18.2%

US Market

Return vs Industry: WELL underperformed the US REITs industry which returned -15.1% over the past year.

Return vs Market: WELL underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

WELLIndustryMarket
7 Day-3.1%-3.5%-2.4%
30 Day-6.9%-0.5%4.2%
90 Day0.5%0.3%6.3%
1 Year-40.1%-42.8%-13.0%-16.4%20.9%18.2%
3 Year-8.6%-21.3%12.8%-0.4%41.2%31.8%
5 Year-0.8%-22.8%37.3%9.7%84.8%63.9%

Price Volatility Vs. Market

How volatile is Welltower's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Welltower undervalued compared to its fair value and its price relative to the market?

36.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WELL ($52.58) is trading below our estimate of fair value ($82.49)

Significantly Below Fair Value: WELL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WELL is good value based on its PE Ratio (16.5x) compared to the US REITs industry average (34x).

PE vs Market: WELL is good value based on its PE Ratio (16.5x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: WELL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WELL's PB Ratio (1.4x) is in line with the US REITs industry average.


Next Steps

Future Growth

How is Welltower forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WELL's earnings are forecast to decline over the next 3 years (-9.5% per year).

Earnings vs Market: WELL's earnings are forecast to decline over the next 3 years (-9.5% per year).

High Growth Earnings: WELL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WELL's revenue (4.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: WELL's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WELL's Return on Equity is forecast to be low in 3 years time (3.2%).


Next Steps

Past Performance

How has Welltower performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WELL has a large one-off gain of $760.8M impacting its June 30 2020 financial results.

Growing Profit Margin: WELL's current net profit margins (26.2%) are higher than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: WELL's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: WELL's earnings growth over the past year (120.9%) exceeds its 5-year average (4.8% per year).

Earnings vs Industry: WELL earnings growth over the past year (120.9%) exceeded the REITs industry 3.3%.


Return on Equity

High ROE: WELL's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Welltower's financial position?


Financial Position Analysis

Short Term Liabilities: WELL's short term assets ($3.6B) exceed its short term liabilities ($968.8M).

Long Term Liabilities: WELL's short term assets ($3.6B) do not cover its long term liabilities ($14.9B).


Debt to Equity History and Analysis

Debt Level: WELL's debt to equity ratio (83.6%) is considered high.

Reducing Debt: WELL's debt to equity ratio has increased from 75.5% to 83.6% over the past 5 years.

Debt Coverage: WELL's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: WELL's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Welltower current dividend yield, its reliability and sustainability?

4.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WELL's dividend (4.64%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: WELL's dividend (4.64%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: WELL's dividend payments have been volatile in the past 10 years.

Growing Dividend: WELL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.6%), WELL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WELL's dividends in 3 years are forecast to be covered by earnings (73.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Shankh Mitra (39 yo)

no data

Tenure

US$5,728,143

Compensation

Mr. Shankh Mitra serves as the Chief Executive Officer at Welltower Inc. since October 05, 2020 and also serves as its Director since April 13, 2020. He served as Vice Chair and Chief Operating Officer at ...


CEO Compensation Analysis

Compensation vs Market: Shankh's total compensation ($USD5.73M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Shankh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shankh Mitra
CEO, Chief Investment Officer & Directorno dataUS$5.73m0.0086%
$ 1.9m
Timothy McHugh
Executive VP & CFO1.08yrsUS$3.49m0.0023%
$ 509.0k
Matthew McQueen
Senior VP4.25yrsUS$1.95m0.0031%
$ 682.4k
Mary Pisanelli
Senior Vice President of Legal & Administration3.75yrsno datano data
Nicholas Rumanes
Head of Development1.58yrsno datano data
Pam Byrne
VP & Head of Human Capital1.08yrsno datano data
Joseph Weisenburger
Senior Vice President of Relationship Management2.75yrsno datano data
Justin Skiver
Senior VP & Global Head of Seniors Housing5.08yrsno datano data
Richard Hansen
Vice President of Asset Management17.17yrsno datano data
Mark Shaver
Senior Vice President of Business Strategy & Health Systems Initiatives2.75yrsno datano data
Keith Konkoli
Senior VP of Real Estate Services & Head of Outpatient Medical2.5yrsno datano data
Ayesha Menon
Senior Vice President of Strategic Investments1.42yrsno data0.0024%
$ 522.2k

2.8yrs

Average Tenure

39yo

Average Age

Experienced Management: WELL's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shankh Mitra
CEO, Chief Investment Officer & Directorno dataUS$5.73m0.0086%
$ 1.9m
Jeffrey Donahue
Lead Independent Directorno dataUS$362.20k0.011%
$ 2.3m
Philip Hawkins
Independent Directorno datano data0.00043%
$ 94.3k
Kenneth Bacon
Independent Chairmanno dataUS$274.32k0.0024%
$ 517.8k
Sharon Oster
Independent Director26.75yrsUS$282.71k0.013%
$ 3.0m
Kathryn Sullivan
Independent Director1.67yrsUS$255.05k0.00050%
$ 109.7k
Diana Reid
Independent Director0.25yrno datano data
Johnese Spisso
Independent Director1.92yrsUS$256.03k0.00054%
$ 118.5k
Sergio Rivera
Independent Director6.17yrsUS$277.64k0.0031%
$ 673.6k
Karen Desalvo
Independent Director1.92yrsUS$255.03k0.00054%
$ 118.5k

1.9yrs

Average Tenure

63yo

Average Age

Experienced Board: WELL's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Welltower Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Welltower Inc.
  • Ticker: WELL
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: US$21.942b
  • Shares outstanding: 417.30m
  • Website: https://www.welltower.com

Number of Employees


Location

  • Welltower Inc.
  • 4500 Dorr Street
  • Toledo
  • Ohio
  • 43615
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WELLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
HCWDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
0LUSLSE (London Stock Exchange)YesCommon StockGBUSDJan 1980
HCWETLX (Eurotlx)YesCommon StockITEURJan 1980
W1EL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Welltower Inc. (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:15
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.