WELL Welltower Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
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Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Welltower trades at a massive premium to sector and peer valuations without corresponding profitability or growth support—PLD, AMT, and EQIX all trade at lower multiples despite weaker revenue growth, highlighting a potential mispricing
- Price/Book of 3.42 is in line with high-quality REITs, reflecting some asset value recognition
- EV/EBITDA and EV/Revenue not available, but low Debt/Equity may support higher multiple justification
- P/E of 133.67 is over 2.9x the sector average (45.80) and 3.8x the median peer (PLD: 35.71)
- Forward P/E of 106.49 implies excessive growth expectations despite negative earnings momentum
Despite strong price momentum (up 46.7% in 1Y and 12.9% in 1M), the disconnect between revenue growth and lagging earnings raises caution about future inflection sustainability
- Revenue growth of 30.6% YoY is exceptional for a REIT and suggests strong demand tailwinds in healthcare facilities
- Recent EPS growth of +34.1% YoY and +22.2% Q/Q indicates a potential turnaround in earnings trajectory
- Negative earnings growth over the past year (-43.7%) creates uncertainty about forward sustainability
- Lack of FCF and OCF data prevents validation of earnings quality and reinvestment capacity
While quarterly earnings have improved recently and long-term price performance is stellar, historical inconsistency and weak profitability relative to sector averages (25.05% margin, 14.17% ROE) undermine quality perception
- Consistent earnings beat trend: 3 of last 4 quarters beat estimates, with an average surprise of 3.92%
- Impressive 5-year share price appreciation of +233.5%, demonstrating long-term investor confidence and outperformance
- Erratic earnings history: multiple large misses (e.g., -67.9% in 2022, -59.6% in 2020) indicate volatility in execution
- Profit margins (9.69%) and returns (ROE 2.75%) have remained weak despite top-line strength
Welltower’s balance sheet appears healthier than peers like AMT (Debt/Equity 4.18) and EQIX (1.48), but missing cash and debt data introduces uncertainty despite favorable ratios
- Debt/Equity of 0.46 is significantly below sector average of 2.10, reducing refinancing and interest rate risk
- Exceptional liquidity with current ratio of 6.99 and quick ratio of 4.09, indicating strong short-term financial resilience
- Total debt and cash figures are unavailable, limiting full assessment of net leverage and cash runway
- ROIC not reported, preventing full capital efficiency analysis
The dividend is currently unsustainable based on earnings coverage, especially compared to peers that maintain lower payout ratios despite higher yields or ROE
- Dividend yield of 1.53% provides modest income, typical for growth-oriented REITs
- Company maintains dividend payment, signaling policy continuity
- Payout ratio of 189.66% is critically high, indicating dividends are not covered by earnings and may be at risk
- No data on dividend growth history or consistency, limiting confidence in long-term policy
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for WELL and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
WELL
Welltower Inc.
Primary
|
+233.5% | +200.3% | +46.7% | +31.4% | +12.9% | +2.3% |
|
PLD
Prologis, Inc.
Peer
|
+36.6% | +19.6% | +11.0% | +13.2% | +0.1% | -2.2% |
|
AMT
American Tower Corporation
Peer
|
-11.4% | -7.7% | -2.5% | -12.5% | -3.4% | +3.2% |
|
EQIX
Equinix, Inc.
Peer
|
+14.3% | +26.5% | -11.1% | -9.3% | -4.5% | -4.8% |
|
SPG
Simon Property Group, Inc.
Peer
|
+202.9% | +79.3% | +7.6% | +13.4% | +2.5% | -0.5% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Real Estate Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
WELL
Welltower Inc.
|
NEUTRAL | $133.02B | 133.67 | 2.8% | 9.7% | $193.82 | |
|
PLD
Prologis, Inc.
|
NEUTRAL | $115.18B | 35.71 | 6.0% | 35.2% | $122.83 | |
|
AMT
American Tower Corporation
|
NEUTRAL | $85.95B | 29.23 | 28.8% | 28.1% | $183.59 | |
|
EQIX
Equinix, Inc.
|
NEUTRAL | $77.23B | 72.47 | 7.7% | 11.8% | $785.57 | |
|
SPG
Simon Property Group, Inc.
|
NEUTRAL | $69.25B | 26.6 | 82.5% | 36.5% | $182.73 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-08-21 | LOPEZ DENNIS G | Director | Stock Award | 73 | $12,187 |
| 2025-06-30 | GUNDLACH ANDREW | Director | Purchase | 20,000 | $3,029,200 |
| 2025-06-17 | MITRA SHANKH | Chief Executive Officer | Gift | 495 | - |
| 2025-05-30 | MCQUEEN MATTHEW GRANT | Officer | Stock Award | 81 | $12,497 |
| 2025-05-30 | MITRA SHANKH | Chief Executive Officer | Stock Award | 112 | $17,279 |
| 2025-05-30 | BURKART JOHN F | Chief Operating Officer | Stock Award | 141 | $21,753 |
| 2025-05-30 | MCHUGH TIMOTHY | President | Stock Award | 61 | $9,411 |
| 2025-05-30 | CHAUDHRI NIKHIL | President | Stock Award | 150 | $23,142 |
| 2025-05-22 | LOPEZ DENNIS G | Director | Stock Award | 108 | $15,865 |