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Welltower
(NYSE:WELL)
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Rating:77Outperform
Price Target:
$263.00
â–²(24.93% Upside)
Action:Upgraded
Date:07/14/26
The score is driven primarily by strong financial quality (notably robust cash flow and re-accelerating revenue) and favorable technical momentum with the stock in a clear uptrend. The main constraint is valuation—very high P/E with only a modest yield—plus a watch item around compressed operating margin and near-term execution/dilution risk highlighted on the earnings call.
Positive Factors
Strong cash generation
Sustained operating cash flow (~$3.0B TTM) with free cash flow near parity provides durable funding for dividends, capital recycling, and acquisitions. High cash conversion reduces refinancing pressure, supports leverage reduction and funds capital-light growth over the next several quarters.
Negative Factors
Sharp operating margin compression
A collapse in EBIT margin to ~1.6% from mid-teens materially weakens operating leverage and obscures core cash-earnings quality. Even with positive net income, compressed operating margins limit incremental profit capture, constrain ROE improvement, and raise sensitivity to cost or occupancy setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating cash flow (~$3.0B TTM) with free cash flow near parity provides durable funding for dividends, capital recycling, and acquisitions. High cash conversion reduces refinancing pressure, supports leverage reduction and funds capital-light growth over the next several quarters.
Read all positive factors
Welltower Key Performance Indicators (KPIs)
Welltower (WELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$173.92B
Dividend Yield1.21%
Average Volume (3M)3.28M
Price to Earnings (P/E)119.6
Beta (1Y)0.23
Revenue Growth37.51%
EPS Growth-160.87%
CountryUS
Employees712
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)2.05
Shares Outstanding705,914,400
10 Day Avg. Volume2,674,563
30 Day Avg. Volume3,284,736
Financial Highlights & Ratios
PEG Ratio-12.23
Price to Book (P/B)2.93
Price to Sales (P/S)11.58
P/FCF Ratio43.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$244.25Price Target Upside16.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)2.9
Revenue Forecast (FY)$13.98B
Welltower Business Overview & Revenue Model
Company Description
Welltower Inc. (NYSE:WELL), an S&P 500 company based in Toledo, Ohio, is a leader in reshaping healthcare infrastructure. This Real Estate Investment Trust (REIT) strategically collaborates with premier operators in seniors housing, post-acute car...
How the Company Makes Money
Welltower makes money primarily by owning healthcare-related real estate and generating recurring income from that real estate through several main structures. (1) Senior housing operating portfolio income: For certain senior housing communities, ...
Welltower Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call portrayed strong operational momentum driven by a strategic mix shift into senior housing operating assets: record same-store NOI growth, robust revenue/FFO gains, margin expansion and active, disciplined deployment of capital. Management also emphasized rising fee-based data-science and fund businesses and strengthened liquidity and balance sheet metrics. Offsetting these positives are near-term dilution from heavy disposition activity, broader capital markets volatility (wider spreads, retrades and execution risk), and uneven performance across lower-growth triple-net segments. Overall, management presented confidence in long-term upside while acknowledging shorter-term market and execution headwinds.Positive Updates
Robust Top-Line and EBITDA Growth
Total revenue increased 38% year-over-year and adjusted EBITDA rose 36% year-over-year for the quarter, driven by strong organic growth and acquisition activity.
Negative Updates
Disposition-Related Near-Term Dilution
Aggressive capital recycling ($11 billion of dispositions since early 2025) has been 'meaningfully dilutive' to 2026 earnings per share, according to management — a conscious trade-off to extend growth capacity in future years.
Read all updates
Q1-2026 Updates
Positive
Negative
Robust Top-Line and EBITDA Growth
Total revenue increased 38% year-over-year and adjusted EBITDA rose 36% year-over-year for the quarter, driven by strong organic growth and acquisition activity.
Read all positive updates
Company Guidance
Welltower updated its 2026 outlook to net income attributable to common stockholders of $3.24–$3.38 per diluted share and normalized FFO of $6.21–$6.35 per diluted share (midpoint $6.28, raised $0.11), with the midpoint increase broken down as +$0.03 from senior housing operating NOI, +$0.07 from investment/financing activity and +$0.01 from better-than-expected taxes/other (partially offset by higher G&A). Management forecasts total portfolio same-store NOI growth of 12.25%–16%, anchored by senior housing operating growth of 16.5%–21.5%, senior housing triple-net 3%–4%, long-term post-acute 2%–3% and outpatient medical 2%–3%; underlying revenue growth midpoint of 9.2% is expected to come from RevPOR growth of ~5% and occupancy gains of ~350 basis points, with expense growth of ~5.3% (ExpPOR ~1.3%), and a targeted year-end net debt to adjusted EBITDA of approximately 3.0x.Welltower Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.58B | 10.67B | 7.85B | 6.48B | 5.78B | 4.71B |
| Gross Profit | 4.50B | 4.18B | 3.02B | 2.53B | 2.22B | 1.93B |
| EBITDA | 2.64B | 2.31B | 2.78B | 2.40B | 2.04B | 1.71B |
| Net Income | 1.41B | 936.85M | 951.68M | 340.09M | 141.21M | 336.14M |
Balance Sheet | ||||||
| Total Assets | 67.22B | 67.30B | 51.04B | 44.01B | 37.89B | 34.91B |
| Cash, Cash Equivalents and Short-Term Investments | 4.70B | 5.03B | 3.51B | 1.99B | 631.68M | 269.26M |
| Total Debt | 19.98B | 21.38B | 16.76B | 16.12B | 14.96B | 14.68B |
| Total Liabilities | 22.29B | 24.10B | 18.47B | 17.64B | 16.50B | 15.91B |
| Stockholders Equity | 43.79B | 42.13B | 31.96B | 25.40B | 20.29B | 17.64B |
Cash Flow | ||||||
| Free Cash Flow | 2.54B | 2.85B | 2.20B | 1.55B | 1.30B | 1.26B |
| Operating Cash Flow | 2.95B | 2.88B | 2.26B | 1.60B | 1.33B | 1.28B |
| Investing Cash Flow | -9.29B | -10.51B | -5.51B | -5.71B | -3.70B | -4.52B |
| Financing Cash Flow | 7.49B | 9.00B | 4.91B | 5.45B | 2.76B | 1.57B |
Welltower Technical Analysis
Positive
210.52
Price Trends
220.19
Positive
213.13
Positive
200.68
Positive
Market Momentum
7.47
Negative
69.00
Neutral
90.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WELL, the sentiment is Positive. The current price of 210.52 is below the 20-day moving average (MA) of 234.31, below the 50-day MA of 220.19, and above the 200-day MA of 200.68, indicating a bullish trend. The MACD of 7.47 indicates Negative momentum. The RSI at 69.00 is Neutral, neither overbought nor oversold. The STOCH value of 90.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WELL.
Welltower Risk Analysis
Welltower disclosed 47 risk factors in its most recent earnings report. Welltower reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Welltower Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $10.25B | 27.01 | 8.67% | 3.56% | 58.48% | 70.32% | |
77 Outperform | $173.92B | 119.56 | 3.51% | 1.51% | 37.51% | -160.87% | |
70 Outperform | $5.56B | 34.13 | 5.61% | 6.47% | 13.50% | 7.25% | |
69 Neutral | $15.97B | 70.40 | 2.88% | 7.73% | 2.71% | -19.70% | |
69 Neutral | $15.07B | 23.58 | 12.40% | 6.11% | 13.95% | 27.68% | |
69 Neutral | $48.57B | 173.11 | 2.10% | 2.45% | 20.67% | 67.64% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
WELL
Welltower
245.04
85.86
53.94%
DOC
Healthpeak Properties
22.19
4.39
24.63%
OHI
Omega Healthcare
50.61
13.94
38.00%
SBRA
Sabra Healthcare REIT
21.98
4.66
26.93%
VTR
Ventas
97.18
31.41
47.75%
CTRE
CareTrust REIT
42.38
12.31
40.92%
Welltower Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Welltower Issues Canadian Senior Notes to Fund Growth
Positive
Jul 13, 2026
On July 13, 2026, Welltower OP LLC issued C$750 million of 3.850% senior unsecured notes due 2031 and C$400 million of 4.150% senior unsecured notes due 2033, both fully and unconditionally guaranteed by Welltower Inc. The notes, sold through a sy...
Business Operations and StrategyDividends
Welltower Boosts Quarterly Dividend Amid Strong Growth Outlook
Positive
Jun 1, 2026
On June 1, 2026, Welltower Inc. announced that its board of directors had approved a 15% increase in the company’s quarterly common stock dividend, with an expected new rate of $0.85 per share beginning in the second quarter of 2026, subject...
Executive/Board ChangesShareholder Meetings
Welltower Shareholders Reject Executive Pay in Annual Meeting
Negative
May 22, 2026
At its 2026 Annual Meeting of Shareholders held on May 21, 2026, Welltower Inc. shareholders elected all nine board-nominated directors to serve until the 2027 meeting and ratified Ernst Young LLP as the company’s independent registered pub...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Welltower Registers Additional Shares to Enhance Capital Flexibility
Neutral
Apr 29, 2026
On April 29, 2026, Welltower Inc. filed a resale prospectus supplement with the SEC to register up to 138,740 shares of common stock to be issued in exchange for securities provided as consideration in its recent acquisition of certain properties,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.