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Welltower (WELL)
NYSE:WELL
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Welltower
(NYSE:WELL)
78Outperform
Positive Factors
Earnings
Welltower reported Normalized FFO above consensus, driven by strong NOI and other income.
Investment Activity
Welltower raised its normalized FFO guidance midpoint driven by stronger SHO SS NOI growth and significant investment activity.
Occupancy Growth
Welltower, Inc. achieved its highest occupancy gain in history, with a 400 basis points increase in SHOP occupancy year over year.
Negative Factors
Market Volatility
The acquisition pipeline remains strong with management leaning into opportunities created by current capital markets volatility.
Welltower (WELL) vs. S&P 500 (SPY)
Market Cap
$98.56B
Dividend Yield1.74%
Average Volume (3M)3.56M
Price to Earnings (P/E)162.5
Beta (1Y)0.48
Revenue Growth23.31%
EPS Growth36.07%
CountryUS
Employees685
SectorReal Estate
Sector Strength80
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.93
Shares Outstanding653,951,600
10 Day Avg. Volume2,657,897
30 Day Avg. Volume3,558,869
Financial Highlights & Ratios
PEG Ratio4.50
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.16
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit37.77
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$160.90Price Target Upside6.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Welltower Business Overview & Revenue Model
Company DescriptionWelltower 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.
How the Company Makes MoneyWelltower makes money primarily through the acquisition, ownership, and management of healthcare real estate properties. Its revenue streams include rental income from leasing properties to healthcare operators and facilities, as well as potential capital gains from the sale of properties. The company often enters long-term lease agreements with healthcare systems and operators, which provides a stable and predictable cash flow. Welltower's strategic partnerships with leading healthcare providers and its focus on high-demand sectors such as senior housing and medical office buildings contribute significantly to its earnings. Additionally, Welltower may earn revenue through property development and redevelopment projects, enhancing the value of its portfolio over time.
Welltower Financial Statement Overview
Summary
Welltower exhibits strong financial performance with impressive revenue growth and profitability. The income statement shows robust growth and improved margins, while the balance sheet is stable with moderate leverage. Cash flow generation is strong, but the volatility in free cash flow growth suggests the need for cautious cash management.Income Statement
Welltower's income statement shows robust growth and profitability. Revenue has consistently increased, with a TTM revenue growth rate of 7.94% from the previous year. Gross profit margin is strong at 51.55%, and net profit margin has improved significantly to 12.77%, indicating enhanced operational efficiency. EBIT and EBITDA margins are healthy at 15.09% and 35.87%, respectively, signaling good cost control and profitability.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.74, indicating moderate leverage. The equity ratio is robust at 63.72%, suggesting strong asset backing by equity. Return on equity has improved to 3.19%, showing better utilization of equity for generating profits. However, there is a need for vigilance regarding total liabilities management.78
Positive
Cash Flow
Cash flow statements indicate strong cash generation with a free cash flow growth rate of -26.77%, reflecting some volatility. The operating cash flow to net income ratio stands at 1.71, and free cash flow to net income is 1.53, indicating efficient cash conversion. The company should focus on sustaining positive cash flow trends amid fluctuating investment and financing activities.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.85B | 6.63B | 5.86B | 4.74B | 4.61B | Gross Profit |
| 3.02B | 2.68B | 2.30B | 1.97B | 2.01B | EBIT |
| 1.15B | 1.12B | 729.10M | 754.25M | 676.54M | EBITDA |
| 2.73B | 2.40B | 2.01B | 1.70B | 1.52B | Net Income Common Stockholders |
| 951.68M | 340.09M | 141.21M | 162.04M | -41.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.51B | 1.99B | 631.68M | 269.26M | 1.55B | Total Assets |
| 51.04B | 44.01B | 37.89B | 34.91B | 32.48B | Total Debt |
| 16.76B | 16.12B | 14.96B | 14.68B | 14.22B | Net Debt |
| 13.25B | 14.13B | 14.33B | 14.41B | 12.67B | Total Liabilities |
| 18.47B | 17.64B | 16.50B | 15.91B | 15.26B | Stockholders Equity |
| 31.96B | 25.40B | 20.29B | 17.64B | 15.97B |
| Cash Flow | Free Cash Flow | |||
| 2.20B | 1.55B | 1.30B | 1.26B | 1.35B | Operating Cash Flow |
| 2.26B | 1.60B | 1.33B | 1.28B | 1.36B | Investing Cash Flow |
| -5.51B | -5.71B | -3.70B | -4.52B | 2.35B | Financing Cash Flow |
| 4.91B | 5.45B | 2.76B | 1.57B | -2.08B |
Welltower Technical Analysis
Positive
150.72
Price Trends
148.55
Positive
140.58
Positive
132.45
Positive
Market Momentum
1.00
Negative
56.13
Neutral
76.23
Neutral
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 150.72 is above the 20-day moving average (MA) of 145.85, above the 50-day MA of 148.55, and above the 200-day MA of 132.45, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 76.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WELL.
Welltower Risk Analysis
Welltower disclosed 45 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.46B | 36.19 | 5.76% | 4.14% | 36.06% | 61.55% | |
78 Outperform | $98.56B | 162.48 | 3.52% | 1.74% | 23.31% | 36.07% | |
74 Outperform | $11.07B | 25.67 | 10.02% | 6.95% | 9.90% | 56.41% | |
69 Neutral | $12.99B | 44.81 | 3.26% | 6.78% | 23.65% | 12.82% | |
60 Neutral | $29.44B | 336.28 | 1.36% | 2.79% | 10.00% | ― | |
60 Neutral | $2.78B | 11.39 | 0.16% | 8531.54% | 5.92% | -14.67% | |
49 Neutral | $5.58B | ― | -10.95% | 7.80% | -5.62% | -140.10% |
* Real Estate Sector Average
Performance Comparison
WELL
Welltower
150.72
55.98
59.09%
DOC
Healthpeak Properties
17.81
-0.26
-1.44%
OHI
Omega Healthcare
37.02
7.46
25.24%
VTR
Ventas
66.56
20.93
45.87%
HR
Healthcare Realty Trust
15.21
1.29
9.27%
CTRE
CareTrust REIT
28.54
4.73
19.87%
Welltower Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 1.12%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook with strong FFO growth, significant acquisitions, and a solid balance sheet. While there is macroeconomic uncertainty and potential pressure on asset prices, the company remains optimistic about its strategic position and future growth.Q1-2025 Updates
Positive Updates
Strong FFO Growth
Reported approximately 19% growth in FFO per share, driven by better-than-expected results from the seniors' housing operating portfolio and significant acquisition activity.
Increase in Full-Year FFO Guidance
Raised the midpoint of full-year FFO guidance by $0.10 per share to $4.97.
Major Achievements
Launched a private fund management business, advanced the Welltower business system, solidified leadership with key promotions, rolled out a corporate rebranding, and received credit rating upgrades to A- from S&P and A3 from Moody's.
Seniors Housing Operating Portfolio Performance
10th consecutive quarter with same-store NOI growth exceeding 20%. Reported 400 basis points of year-over-year occupancy growth in Q1, highest level outside post-COVID recovery.
Significant Acquisition Activity
Announced $6.2 billion in pro rata acquisitions, including $4.6 billion Canadian acquisition of Amica Senior Living.
Strong Balance Sheet
Net debt to adjusted EBITDA declined to 3.3 times, a record low for the company, with $9 billion of liquidity.
Negative Updates
Macroeconomic Uncertainty
Acknowledged rise in macroeconomic uncertainty, particularly with summer leasing season approaching.
Potential Pressure on Asset Prices
Noted potential downward pressure on asset prices due to higher interest rates and wider debt spreads.
Company Guidance
In the first quarter of fiscal year 2025, Welltower reported a 19% growth in Funds From Operations (FFO) per share, raising the full-year FFO guidance midpoint by $0.10 to $4.97. This growth was driven by significant acquisition activities totaling $6.2 billion, including a major $4.6 billion Canadian acquisition of Amica Senior Living. The company also achieved a 400 basis points year-over-year occupancy growth in its senior housing operating portfolio, marking its highest growth outside post-COVID recovery. Same-store net operating income growth exceeded 20% for the tenth consecutive quarter. Furthermore, Welltower's successful rollout of its proprietary business platform and a corporate rebranding were highlighted as key achievements. The company also celebrated credit rating upgrades to A- and A3 by S&P and Moody's, respectively, and reported its net debt to adjusted EBITDA ratio at a record low of 3.3 times. The guidance for 2025 anticipates a total portfolio same-store NOI growth of 10% to 13.25%, with strong performance expected from the senior housing operating segment, projecting a growth range of 16.5% to 21.5%.Welltower Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Welltower Announces Executive Promotions and Leadership Changes
Positive
Jan 2, 2025
Welltower Inc. announced several executive promotions, highlighting its commitment to long-term growth and internal talent development. The appointments of Nikhil Chaudhri and Tim McHugh as Co-Presidents, along with other leadership changes, are expected to bolster Welltower’s operational capabilities and enhance its positioning within the healthcare real estate sector, aligning with its strategic goals for future expansion and success.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.