NYSE:WELL

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 23.1% below its fair value

Earnings grew by 103.7% over the past year

Pays a high and reliable dividend of 4.14%

Risk Analysis

Earnings are forecast to decline by an average of -22.2% per year for the next 3 years

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer with proven track record.


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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

4.5%

WELL

2.3%

US REITs

0.8%

US Market


1 Year Return

19.6%

WELL

20.0%

US REITs

25.1%

US Market

Return vs Industry: WELL matched the US REITs industry which returned 17.9% over the past year.

Return vs Market: WELL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

WELLIndustryMarket
7 Day4.5%2.3%0.8%
30 Day9.2%4.3%3.1%
90 Day-3.6%0.3%10.9%
1 Year24.9%19.6%24.9%20.0%27.7%25.1%
3 Year51.8%30.5%36.0%18.9%51.3%41.6%
5 Year35.5%5.8%47.5%17.1%77.2%57.6%

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?

19.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WELL ($84.03) is trading below our estimate of fair value ($109.25)

Significantly Below Fair Value: WELL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WELL is good value based on its PE Ratio (29.9x) compared to the REITs industry average (37.8x).

PE vs Market: WELL is poor value based on its PE Ratio (29.9x) compared to the US market (18.9x).


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 is overvalued based on its PB Ratio (2.2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

-22.2%

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 (-22.2% per year).

Earnings vs Market: WELL's earnings are forecast to decline over the next 3 years (-22.2% per year).

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

Revenue vs Market: WELL's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: WELL's revenue (2.1% 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 (5.9%).


Next Steps

Past Performance

How has Welltower performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WELL has a large one-off gain of $592.2M impacting its September 30 2019 financial results.

Growing Profit Margin: WELL's current net profit margins (21.8%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: WELL's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: WELL's earnings growth over the past year (103.7%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: WELL earnings growth over the past year (103.7%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: WELL's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Welltower's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: WELL has a high level of physical assets or inventory.

Debt Coverage by Assets: WELL's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: WELL's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if WELL has a sufficient allowance for bad loans.

Low Risk Liabilities: WELL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if WELL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WELL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if WELL has an appropriate level of bad loans.


Next Steps

Dividend

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

3.96%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: WELL's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: WELL's dividend (4.14%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: WELL's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (94.2%), WELL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WELL's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

What is the CEO of Welltower's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Tom DeRosa (61yo)

5.8yrs

Tenure

US$12,884,453

Compensation

Mr. Thomas J. DeRosa, also known as Tom, serves as a Chairman of the Board at Welltower Inc. since 2019. He serves as Director of Empire State Realty Trust Inc. since October 2013, is currently Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD12.88M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

46yo

Average Age

Experienced Management: WELL's management team is considered experienced (2 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

62yo

Average Age

Experienced Board: WELL's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$1,503,97715 May 19
Thomas DeRosa
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares19,307
Max PriceUS$77.90
SellUS$4415 Mar 19
John Goodey
EntityIndividual
Shares0.57
Max PriceUS$77.13
SellUS$372,50001 Mar 19
Mercedes Kerr
EntityIndividual
Shares5,000
Max PriceUS$74.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.2%.


Management Team

  • Tom DeRosa (61yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$12.88m
  • Joe Weisenburger

    Senior Vice President of Relationship Management

    • Tenure: 2yrs
  • Justin Skiver

    Senior VP & Global Head of Seniors Housing

    • Tenure: 4.3yrs
  • Mary Pisanelli

    Senior Vice President of Legal & Administration

    • Tenure: 3yrs
  • Matt McQueen (46yo)

    Senior VP

    • Tenure: 3.5yrs
    • Compensation: US$1.70m
  • Shankh Mitra (38yo)

    Executive VP & Chief Investment Officer

    • Tenure: 2yrs
    • Compensation: US$4.93m
  • Tim McHugh

    Senior VP

    • Tenure: 0.3yrs
  • Nicholas Rumanes

    Head of Development

    • Tenure: 0.8yrs
  • Ryan Rothacker

    Vice President of Portfolio Management & Operations

    • Tenure: 0.8yrs
  • Pam Byrne

    VP & Head of Human Capital

    • Tenure: 0.3yrs

Board Members

  • R. Trumbull (70yo)

    Independent Director

    • Tenure: 21yrs
    • Compensation: US$296.49k
  • Jeff Donahue (72yo)

    Independent Lead Director

    • Tenure: 1yrs
    • Compensation: US$416.99k
  • Ken Bacon (64yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$259.99k
  • Sharon Oster (70yo)

    Independent Director

    • Tenure: 26yrs
    • Compensation: US$296.49k
  • Tom DeRosa (61yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$12.88m
  • Kathryn Sullivan (62yo)

    Independent Director

    • Tenure: 0.9yrs
  • Johnese Spisso (58yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$22.29k
  • Serge Rivera (56yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$267.49k
  • Karen Desalvo (54yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$22.29k

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$35.629b
  • Shares outstanding: 405.80m
  • 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

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-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower<sup>™</sup>, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 23:44
End of Day Share Price2020/01/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.