Welltower (WELL) AI Stock Analysis

• Market Cap: $99.87B
• Dividend Yield: 1.75%
• Average Volume (3M): 3.31M
• Price to Earnings (P/E): 164.6
• Beta (1Y): 0.41
• Revenue Growth: 23.31%
• EPS Growth: 36.07%
• Country: US
• Employees: 685
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.40
• Shares Outstanding: 653,951,600
• 10 Day Avg. Volume: 2,653,808
• 30 Day Avg. Volume: 3,312,384
• PEG Ratio: 6.10
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.16
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 40.43
• Enterprise Value/Ebitda: 8.71
• 1Y Price Target: $174.33
• Price Target Upside: 12.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 79 Outperform
• Price Target: $171.00 ▲(10.21%Upside)

Welltower's overall score reflects its robust financial performance and positive earnings call, indicating strong operational efficiency and strategic growth initiatives. However, a high P/E ratio and low dividend yield suggest potential overvaluation, which, along with macroeconomic uncertainties, are notable risks.

Positive Factors

Earnings

Welltower reported Normalized FFO above consensus, driven by strong NOI and other income.

Investment Activity

Welltower's external activity is seen positively with $6.2 billion of investments expected for 2025, exceeding prior levels.

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

Cost of Capital

Investment activity has the potential to reach $10B given an opportunistic balance sheet and cost of capital.

Market Volatility

The acquisition pipeline remains strong with management leaning into opportunities created by current capital markets volatility.

Welltower Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Welltower makes money primarily through the ownership, management, and leasing of real estate properties focused on health care and senior living. The company generates revenue from rental income by leasing its properties to senior housing operators, health systems, and other healthcare providers. Additionally, Welltower engages in strategic partnerships and joint ventures to expand its portfolio and enhance its service offerings, which further contribute to its income. Revenue is also bolstered by property management fees and interest income from loans made to real estate operators and developers. The company's financial performance is influenced by factors such as occupancy rates, rental rate escalations, and the overall demand for senior living and healthcare facilities.

Welltower Financial Statement Overview

Summary

Welltower exhibits strong financial performance with impressive revenue growth, profitability, and a stable balance sheet. The company has managed to improve margins and leverage profitability while maintaining a healthy level of equity. Cash flows are solid, though some fluctuations in free cash flow growth suggest the need for cautious cash management going forward.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.48B	7.85B	6.63B	5.86B	4.74B	4.61B
Gross Profit	2.42B	3.02B	2.68B	2.30B	1.97B	2.01B
EBITDA	2.98B	2.73B	2.40B	2.01B	1.70B	1.52B
Net Income	1.08B	951.68M	340.09M	141.21M	162.04M	-41.52M
Balance Sheet
Total Assets	53.29B	51.04B	44.01B	37.89B	34.91B	32.48B
Cash, Cash Equivalents and Short-Term Investments	3.50B	3.51B	1.99B	631.68M	269.26M	1.55B
Total Debt	2.50B	16.76B	16.12B	14.96B	14.68B	14.22B
Total Liabilities	18.71B	18.47B	17.64B	16.50B	15.91B	15.26B
Stockholders Equity	33.96B	31.96B	25.40B	20.29B	17.64B	15.97B
Cash Flow
Free Cash Flow	2.24B	2.20B	1.55B	1.30B	1.26B	1.35B
Operating Cash Flow	2.45B	2.26B	1.60B	1.33B	1.28B	1.36B
Investing Cash Flow	-6.96B	-5.51B	-5.71B	-3.70B	-4.52B	2.35B
Financing Cash Flow	5.63B	4.91B	5.45B	2.76B	1.57B	-2.08B

Welltower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 155.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 155.16 is above the 20-day moving average (MA) of 152.68, above the 50-day MA of 151.13, and above the 200-day MA of 140.08, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 68.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WELL.

Welltower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WELL	79 Outperform	$99.87B	164.64	3.52%	1.75%	23.31%	36.07%
CTRE	78 Outperform	$5.87B	33.39	7.02%	4.36%	43.27%	80.97%
OHI	75 Outperform	$10.61B	22.98	10.53%	7.31%	10.56%	45.37%
DOC	68 Neutral	$13.18B	46.72	3.26%	6.61%	23.65%	12.82%
VTR	68 Neutral	$85.67B	191.29	1.36%	2.96%	10.00%	―
Sector *	59 Neutral	C$1.26B	-0.04	-8.19%	4.99%	10.83%	-22.67%
HR	59 Neutral	$5.66B	―	-6.83%	7.70%	-7.26%	18.45%

Welltower Corporate Events

Welltower Issues $1.25 Billion in New Notes

On June 27, 2025, Welltower OP LLC issued $1.25 billion in notes, comprising $600 million of 4.500% Notes due 2030 and $650 million of 5.125% Notes due 2035. The proceeds from these notes are intended for general corporate purposes, including debt repayment and investment in healthcare and seniors housing properties, reflecting the company’s strategic focus on expanding its real estate portfolio in these sectors.

The most recent analyst rating on (WELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Welltower stock, see the WELL Stock Forecast page.

Welltower Shareholders Elect Directors and Approve Plans

At the 2025 Annual Meeting of Shareholders on May 22, 2025, Welltower Inc. shareholders elected nine directors, ratified Ernst & Young LLP as the independent auditor for 2025, approved executive compensation, and amended the 2022 Long-Term Incentive Plan. These decisions reflect shareholder support for the company’s leadership and strategic direction, potentially strengthening its governance and financial oversight.

The most recent analyst rating on (WELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Welltower stock, see the WELL Stock Forecast page.