Welltower (WELL) AI Stock Analysis

• Market Cap: $140.22B
• Dividend Yield: 1.38%
• Average Volume (3M): 3.30M
• Price to Earnings (P/E): 154.0
• Beta (1Y): 0.29
• Revenue Growth: 32.27%
• EPS Growth: 67.00%
• Country: US
• Employees: 685
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.41
• Shares Outstanding: 686,328,060
• 10 Day Avg. Volume: 2,564,745
• 30 Day Avg. Volume: 3,302,985
• PEG Ratio: 0.57
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 9.68
• P/FCF Ratio: 34.57
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 13.65
• Enterprise Value/Gross Profit: 34.81
• Enterprise Value/Ebitda: 38.20
• 1Y Price Target: $208.91
• Price Target Upside: 2.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.83
• Revenue Forecast (FY): $10.30B

• Rating: 77 Outperform
• Price Target: $232.00 ▲(13.55% Upside)

Welltower's overall stock score reflects strong financial performance and strategic initiatives that position the company well for future growth. The high P/E ratio suggests potential overvaluation, but positive earnings call sentiment and corporate events support a favorable outlook. Technical indicators show bullish momentum, though caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Welltower's healthcare properties, enhancing its market position in the healthcare REIT sector.

Strategic Expansion

The acquisition of high-quality assets in the UK strengthens Welltower's international presence and diversifies its revenue streams.

Cash Flow Generation

Strong cash flow generation supports Welltower's ability to reinvest in growth opportunities and maintain financial stability.

Negative Factors

Operational Cost Pressures

Decreasing margins suggest rising operational costs, which could pressure profitability if not managed effectively.

Earnings Dilution

Earnings dilution from new acquisitions may impact near-term profitability, requiring careful management to realize long-term benefits.

High Upfront Costs

Significant upfront costs for new incentive plans could strain short-term financials, affecting net income and cash reserves.

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 generates revenue primarily through rental income from its real estate investments in senior housing and healthcare facilities. The company typically enters into long-term leases with experienced operators, ensuring a stable cash flow. Additionally, Welltower may earn revenue from property management fees and financing arrangements with its tenants. Key revenue streams include rental payments, which are often structured with built-in escalations tied to inflation or market rates. The company's strategic partnerships with leading healthcare operators, such as Brookdale Senior Living and ProMedica, enhance its earning potential by ensuring high occupancy rates and operational efficiencies in its facilities. Furthermore, Welltower's focus on acquiring and developing properties in high-demand markets contributes to its long-term financial growth.

Welltower Financial Statement Overview

Summary

Welltower exhibits strong financial health with significant revenue growth and improved profitability. The balance sheet shows prudent leverage management, though return on equity could be enhanced. Cash flow metrics are solid, reflecting efficient cash generation and utilization. Overall, the company is well-positioned in the REIT healthcare facilities sector.

Income Statement

Welltower has demonstrated strong revenue growth with a TTM increase of 7.39% and consistent gross profit margins around 39%. The net profit margin has improved to 9.77% in the TTM, indicating enhanced profitability. However, the EBIT and EBITDA margins have slightly decreased, suggesting some operational cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.47 in the TTM, reflecting better leverage management. Return on equity remains modest at 2.73%, indicating room for improvement in generating returns for shareholders. The equity ratio is stable, suggesting a solid asset base.

Cash Flow

Welltower's free cash flow growth is robust at 7.32% in the TTM, and the operating cash flow to net income ratio is strong at 1.37, indicating efficient cash generation. The free cash flow to net income ratio is nearly 1, showing effective conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.81B	7.85B	6.48B	5.78B	4.71B	4.59B
Gross Profit	3.85B	3.02B	2.53B	2.22B	1.93B	1.99B
EBITDA	3.50B	2.78B	2.40B	2.04B	1.71B	1.53B
Net Income	957.98M	951.68M	340.09M	141.21M	336.14M	978.84M
Balance Sheet
Total Assets	59.50B	51.04B	44.01B	37.89B	34.91B	32.48B
Cash, Cash Equivalents and Short-Term Investments	6.81B	3.51B	1.99B	631.68M	269.26M	1.55B
Total Debt	18.16B	16.76B	16.12B	14.96B	14.68B	14.22B
Total Liabilities	20.48B	18.47B	17.64B	16.50B	15.91B	15.26B
Stockholders Equity	38.76B	31.96B	25.40B	20.29B	17.64B	15.97B
Cash Flow
Free Cash Flow	2.77B	2.20B	1.55B	1.30B	1.26B	1.35B
Operating Cash Flow	2.79B	2.26B	1.60B	1.33B	1.28B	1.36B
Investing Cash Flow	-7.26B	-5.51B	-5.71B	-3.70B	-4.52B	2.35B
Financing Cash Flow	7.56B	4.91B	5.45B	2.76B	1.57B	-2.08B

Welltower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 204.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 204.31 is above the 20-day moving average (MA) of 198.90, above the 50-day MA of 184.93, and above the 200-day MA of 161.72, indicating a bullish trend. The MACD of 5.96 indicates Positive momentum. The RSI at 69.13 is Neutral, neither overbought nor oversold. The STOCH value of 55.48 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
OHI	78 Outperform	$13.51B	25.69	11.28%	5.86%	13.50%	31.56%
CTRE	78 Outperform	$8.42B	28.09	8.13%	3.44%	59.25%	88.37%
WELL	77 Outperform	$140.22B	153.99	2.78%	1.38%	32.27%	67.00%
SBRA	74 Outperform	$4.81B	26.52	6.29%	6.22%	8.12%	75.95%
VTR	68 Neutral	$38.79B	152.35	2.15%	2.34%	15.69%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DOC	59 Neutral	$12.08B	―	-0.48%	6.57%	9.58%	-111.99%

Welltower Corporate Events

Welltower Announces New $7.5 Billion Equity Agreement

On October 28, 2025, Welltower Inc. announced a new equity distribution agreement allowing for the sale of up to $7.5 billion in common stock through various sales agents. This move, which replaces a previous agreement from March 2025, is part of Welltower’s strategy to manage its capital structure and potentially fund future acquisitions. Additionally, Welltower filed prospectus supplements with the SEC to register the resale of shares issued for recent acquisitions and the possible issuance of shares related to redemption of OP Units, indicating ongoing strategic financial maneuvers to support its growth and operational flexibility.

Welltower Launches Ten-Year Executive Continuity Program

On October 27, 2025, Welltower Inc. announced the adoption of a Ten-Year Executive Continuity and Alignment Program, aimed at securing its senior leadership team and aligning their interests with shareholders. This program includes a long-term equity-based incentive structure for its executives, with a focus on achieving market capitalization and total shareholder return milestones. The initiative is expected to drive long-term shareholder returns and reinforce Welltower’s position as a leader in the healthcare REIT sector, particularly as it intensifies its focus on seniors housing and technology-driven operational excellence.

Welltower Reports Strong Q3 Results and Major Investments

On October 27, 2025, Welltower Inc. announced its third-quarter results, highlighting a 20.7% increase in normalized funds from operations and a 14.5% growth in same-store NOI, driven by strong performance in its Seniors Housing Operating portfolio. The company completed $1.9 billion in investments and announced $23 billion in transaction activities, including significant acquisitions in the U.S. and U.K., which are expected to enhance its market position and growth potential. Additionally, Welltower introduced a Ten Year Executive Continuity and Alignment Program to secure its leadership team, aiming for long-term stability and alignment with shareholder interests.