Key Considerations for Welltower Investors

By Ken Smith • Tuesday, July 29 15:22 • Permanent Link

With gains of 5.0%, Welltower was one of the winners on Wall Street today. Its shares are now trading at $166.13 and have logged a -0.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

Welltower has moved 41.0% over the last year, and the S&P 500 logged a change of 17.5%
WELL has an average analyst rating of buy and is -2.08% away from its mean target price of $169.67 per share
Its trailing earnings per share (EPS) is $1.76
Welltower has a trailing 12 month Price to Earnings (P/E) ratio of 94.4 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $1.82 and its forward P/E ratio is 91.3
The company has a Price to Book (P/B) ratio of 3.3 in contrast to the S&P 500's average ratio of 4.74
Welltower is part of the Real Estate sector, which has an average P/E ratio of 27.31 and an average P/B of 1.94
WELL has reported YOY quarterly earnings growth of 80.3% and gross profit margins of 0.4%
The company has a free cash flow of $2.85 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Welltower Inc. (NYSE: WELL), an S&P 500 company, is one of the world's preeminent residential wellness and healthcare infrastructure companies. We seek to position our portfolio of 1,500+ seniors and wellness housing communities at the intersection of housing, healthcare, and hospitality, creating vibrant communities for mature renters and older adults in the United States, United Kingdom, and Canada. We also strive to support physicians in our outpatient medical buildings with the critical infrastructure needed to deliver quality care. We believe our real estate portfolio is unmatched, located in highly attractive micro-markets with stunning built environments. Yet, we are an unusual real estate organization as we view ourselves as a product company in a real estate wrapper, driven by relationships and an unconventional culture. Through our disciplined approach to capital allocation powered by our Data Science platform and superior operating results driven by our operating platform, the Welltower Business System, we aspire to deliver long-term compounding of per share growth and returns for our existing investors our North Star.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.