10Y annualized return is
positive but below market average
at 7.4% per year
WELL has met or exceeded earnings expectations in
all
recent quarters (0/0)
Strong Liquidity Position
Healthy Profit Margins
Low Debt Levels
Cash Reserves
📈 Strong Financial Performance
🏆 Competitive Advantages
💪 Resilient Business Model
🚀 Strong Growth Outlook
🔧 Innovation and Technology Integration
📊 Expanding Investment Opportunities
High Valuation Ratios
Low Return on Equity
High Dividend Payout Ratio
Overall, Welltower demonstrates strong business quality with solid financial performance, competitive advantages, and resilience in its model. Looking ahead, the company has promising growth prospects bolstered by technology integration and significant investment opportunities.
Analysis Date: February 12, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Welltower Inc. is a company that helps create and maintain places where older adults can live and receive care. They invest in and manage buildings like retirement homes and medical centers, mainly in the U.S., Canada, and the U.K. Their goal is to improve the health and well-being of people by providing better facilities and services for healthcare. Essentially, they focus on making sure that healthcare spaces are ready to support the needs of seniors and others who require medical attention.
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$58.56
Current Market Price: $146.87
IV/P Ratio: 0.40x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-151.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for WELL
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (94.20)
P/B ratio ≤ 1.5 (2.81)
Current ratio ≥ 2.0 (5.28x)
Long-term debt < Net current assets (0.40x)
Margin of safety (-151.0%)
WELL does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
3.20%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
29.90%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
11.98%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
With a net profit margin of 11.98% and an operating profit margin of 15.28%, the company demonstrates strong profitability relative to its revenue.
The return on equity (ROE) of 3.20% suggests that the company is not generating high returns for its shareholders, which could be a concern for investors.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.07x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
5.28x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The debt-to-equity ratio of 0.073 indicates the company has low leverage, reducing financial risk associated with debt.
The cash ratio of 2.56 indicates strong liquidity, showcasing the company's ability to cover its short-term obligations with cash.
With a dividend payout ratio of 162.37%, the company is returning more to shareholders than it earns, which could raise sustainability concerns for future dividends.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
Welltower delivered a normalized FFO per share growth of 18% year over year. The company also reported a nearly 24% same-store NOI growth in its senior housing operating portfolio, marking nine consecutive quarters of NOI growth exceeding 20%. This demonstrates strong demand and effective management.
Welltower's competitive edge is strengthened by a robust data science platform that identifies investment opportunities and enhances operational efficiencies. Their focus on capital-light transactions and partnerships with strong operating partners further solidifies their market position.
The company operates in a sector that is largely immune to geopolitical and regulatory changes, with demand driven by the aging population. The expected demographic boom in the 80+ age cohort is anticipated to significantly benefit the senior housing industry.
Welltower expects another year of exceptional growth in 2025, with projected same-store NOI growth between 9.25% and 13%. The company anticipates that favorable demographics and reduced supply will drive continued occupancy and revenue growth.
The rollout of a new operational tech platform is ongoing, aimed at enhancing resident and employee experience. This technology is expected to improve efficiencies and drive further growth by providing actionable data to site employees.
With a robust pipeline of acquisitions and a strong capital deployment strategy, Welltower is poised to capitalize on market dislocations. The company has already closed $2 billion in acquisitions early in 2025, indicating strong future investment activity.
