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.


Snowflake Analysis

6 star dividend payer 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

-3.6%

WELL

-1.3%

US REITs

-4.2%

US Market


1 Year Return

16.2%

WELL

15.6%

US REITs

14.0%

US Market

Return vs Industry: WELL matched the US REITs industry which returned 15.6% over the past year.

Return vs Market: WELL exceeded the US Market which returned 14% over the past year.


Shareholder returns

WELLIndustryMarket
7 Day-3.6%-1.3%-4.2%
30 Day-0.4%2.2%-1.8%
90 Day0.9%4.5%2.6%
1 Year21.2%16.2%20.3%15.6%16.3%14.0%
3 Year42.8%23.1%35.9%18.9%43.2%34.0%
5 Year43.1%11.7%57.8%25.2%65.9%47.6%

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?

18.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WELL ($86.63) is trading below our estimate of fair value ($105.96)

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 (28.2x) compared to the REITs industry average (37.7x).

PE vs Market: WELL is poor value based on its PE Ratio (28.2x) compared to the US market (17.7x).


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 (2.3x) 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 3 analysts?

-23.6%

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 (-23.6% per year).

Earnings vs Market: WELL's earnings are forecast to decline over the next 3 years (-23.6% per year).

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

Revenue vs Market: WELL's revenue (1.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WELL's revenue (1.1% 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 (6.1%).


Next Steps

Past Performance

How has Welltower performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WELL has a large one-off gain of $635.8M impacting its December 31 2019 financial results.

Growing Profit Margin: WELL's current net profit margins (24.1%) are higher than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: WELL's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: WELL's earnings growth over the past year (62.5%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: WELL earnings growth over the past year (62.5%) exceeded the REITs industry 6.9%.


Return on Equity

High ROE: WELL's Return on Equity (7.8%) is considered low.


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 0.2x 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?

4.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WELL's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: WELL's dividend (4.02%) is in the top 25% of dividend payers in the US market (3.77%)


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 (88.8%), 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

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

2.1yrs

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 ($USD12.88M) is about average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas DeRosa
Chairman & CEO5.8yrsUS$12.88m0.062% $22.2m
Shankh Mitra
Executive VP & Chief Investment Officer2.1yrsUS$4.93m0.0087% $3.1m
Matthew McQueen
Senior VP3.6yrsUS$1.70m0.0032% $1.1m
Tim McHugh
Senior VP0.4yrsno data0.0024% $838.9k
Ryan Rothacker
Vice President of Portfolio Management & Operations0.9yrsno datano data
Mary Pisanelli
Senior Vice President of Legal & Administration3.1yrsno datano data
Nicholas Rumanes
Head of Development0.9yrsno datano data
Pam Byrne
VP & Head of Human Capital0.4yrsno datano data
Joseph Weisenburger
Senior Vice President of Relationship Management2.1yrsno datano data
Justin Skiver
Senior VP & Global Head of Seniors Housing4.4yrsno datano data

2.1yrs

Average Tenure

46yo

Average Age

Experienced Management: WELL's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas DeRosa
Chairman & CEO5.8yrsUS$12.88m0.062% $22.2m
R. Trumbull
Independent Director21.1yrsUS$296.49k0.018% $6.3m
Jeffrey Donahue
Independent Lead Director1.1yrsUS$416.99k0.010% $3.6m
Kenneth Bacon
Independent Director4.1yrsUS$259.99k0.0019% $675.4k
Sharon Oster
Independent Director26.1yrsUS$296.49k0.013% $4.7m
Kathryn Sullivan
Independent Director1yrsno data0.00097% $344.8k
Johnese Spisso
Independent Director1.3yrsUS$22.29k0.0010% $359.0k
Sergio Rivera
Independent Director5.5yrsUS$267.49k0.0026% $931.3k
Karen Desalvo
Independent Director1.3yrsUS$22.29k0.0010% $359.0k

1.3yrs

Average Tenure

62yo

Average Age

Experienced Board: WELL's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.6%.


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$35.547b
  • Shares outstanding: 410.33m
  • 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
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-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, 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 Analysis2020/02/25 00:15
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.