Welltower logged a 0.3% change during today's morning session, and is now trading at a price of $150.72 per share.
Welltower returned gains of 55.7% last year, with its stock price reaching a high of $158.55 and a low of $95.86. Over the same period, the stock outperformed the S&P 500 index by 46.0%. More recently, the company's 50-day average price was $148.58. Welltower Inc. (NYSE: WELL) an S&P 500 company, is the world's preeminent residential wellness and healthcare infrastructure company. Based in Toledo, OH, the Large-Cap Real Estate company has 685 full time employees. Welltower has offered a 1.8% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,121 | $4,606 | $4,742 | $5,861 | $6,638 | $7,991 |
| Operating Margins | 11% | -1% | 4% | 3% | 5% | 7% |
| Net Margins | 26% | 23% | 8% | 3% | 5% | 12% |
| Net Income (M) | $1,330 | $1,039 | $374 | $161 | $358 | $973 |
| Net Interest Expense (M) | $556 | $514 | $490 | $530 | $608 | $574 |
| Depreciation & Amort. (M) | $1,027 | $1,038 | $1,038 | $1,310 | $1,401 | $1,632 |
| Diluted Shares (M) | 404 | 417 | 427 | 465 | 519 | 609 |
| Earnings Per Share | $3.05 | $2.33 | $0.78 | $0.3 | $0.66 | $1.57 |
| EPS Growth | n/a | -23.61% | -66.52% | -61.54% | 120.0% | 137.88% |
| Avg. Price | $70.88 | $53.9 | $73.79 | $84.27 | n/a | $150.33 |
| P/E Ratio | 23.09 | 22.84 | 93.41 | 271.84 | nan | 95.15 |
| Free Cash Flow (M) | $1,207 | $1,120 | $993 | $853 | $1,084 | $1,399 |
| CAPEX (M) | $329 | $245 | $283 | $476 | $518 | $858 |
| EV / EBITDA | 25.81 | 22.79 | 36.78 | 34.9 | nan | 45.22 |
| Total Debt (M) | $13,421 | $2,378 | $13,910 | $14,714 | $15,736 | $15,500 |
| Net Debt / EBITDA | 8.37 | 0.83 | 11.29 | 9.49 | 7.85 | 5.56 |
Welltower has weak operating margins with a negative growth trend, declining EPS growth, and a highly leveraged balance sheet. On the other hand, the company benefits from rapidly growing revenues and increasing reinvestment in the business and generally positive cash flows.
Welltower's Valuation Is in Line With Its Sector Averages:
Welltower has a trailing twelve month P/E ratio of 92.9, compared to an average of 27.31 for the Real Estate sector. Based on its EPS guidance of $1.82, the company has a forward P/E ratio of 81.6. The -7.1% compound average growth rate of Welltower's historical and projected earnings per share yields a PEG ratio of -13.06. This indicates that its shares are overvalued.Furthermore, Welltower is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.89 is higher than the sector average of 1.94. The company's shares are currently trading 250.0% below their Graham number. In conclusion, Welltower's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Welltower Has an Average Rating of Buy:
The 20 analysts following Welltower have set target prices ranging from $134.0 to $242.0 per share, for an average of $165.2 with a buy rating. The company is trading -8.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Welltower has a very low short interest because 1.5% of the company's shares are sold short. Institutions own 96.1% of the company's shares, and the insider ownership rate stands at 0.04%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 15% stake in the company is worth $14,815,061,405.
