Welltower (WELL) AI Stock Analysis

• Market Cap: $99.71B
• Dividend Yield: 1.72%
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 164.4
• Beta (1Y): 0.45
• Revenue Growth: 23.31%
• EPS Growth: 36.07%
• Country: US
• Employees: 685
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.40
• Shares Outstanding: 653,951,600
• 10 Day Avg. Volume: 2,589,315
• 30 Day Avg. Volume: 2,524,618
• PEG Ratio: 6.02
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.05
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 39.87
• Enterprise Value/Ebitda: 8.59
• 1Y Price Target: $171.50
• Price Target Upside: 13.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: $171.00 ▲(12.72%Upside)

Welltower's overall score reflects its robust financial performance and positive earnings call, indicating strong operational efficiency and strategic growth initiatives. However, a high P/E ratio and low dividend yield suggest potential overvaluation, which, along with macroeconomic uncertainties, are notable risks.

Positive Factors

Earnings

Welltower reported Normalized FFO above consensus, driven by strong NOI and other income.

Investment Activity

Welltower raised its normalized FFO guidance midpoint driven by stronger SHO SS NOI growth and significant investment activity.

Occupancy Growth

Welltower, Inc. achieved its highest occupancy gain in history, with a 400 basis points increase in SHOP occupancy year over year.

Negative Factors

Cost of Capital

Investment activity has the potential to reach $10B given an opportunistic balance sheet and cost of capital.

Market Volatility

The acquisition pipeline remains strong with management leaning into opportunities created by current capital markets volatility.

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 makes money primarily through the ownership, management, and leasing of real estate properties focused on health care and senior living. The company generates revenue from rental income by leasing its properties to senior housing operators, health systems, and other healthcare providers. Additionally, Welltower engages in strategic partnerships and joint ventures to expand its portfolio and enhance its service offerings, which further contribute to its income. Revenue is also bolstered by property management fees and interest income from loans made to real estate operators and developers. The company's financial performance is influenced by factors such as occupancy rates, rental rate escalations, and the overall demand for senior living and healthcare facilities.

Welltower Financial Statement Overview

Summary

Welltower exhibits strong financial performance with impressive revenue growth and profitability. The income statement shows robust growth and improved margins, while the balance sheet is stable with moderate leverage. Cash flow generation is strong, but the volatility in free cash flow growth suggests the need for cautious cash management.

Income Statement

Welltower's income statement shows robust growth and profitability. Revenue has consistently increased, with a TTM revenue growth rate of 7.94% from the previous year. Gross profit margin is strong at 51.55%, and net profit margin has improved significantly to 12.77%, indicating enhanced operational efficiency. EBIT and EBITDA margins are healthy at 15.09% and 35.87%, respectively, signaling good cost control and profitability.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.74, indicating moderate leverage. The equity ratio is robust at 63.72%, suggesting strong asset backing by equity. Return on equity has improved to 3.19%, showing better utilization of equity for generating profits. However, there is a need for vigilance regarding total liabilities management.

Cash Flow

Cash flow statements indicate strong cash generation with a free cash flow growth rate of -26.77%, reflecting some volatility. The operating cash flow to net income ratio stands at 1.71, and free cash flow to net income is 1.53, indicating efficient cash conversion. The company should focus on sustaining positive cash flow trends amid fluctuating investment and financing activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.48B	7.85B	6.63B	5.86B	4.74B	4.61B
	Gross Profit
2.42B	3.02B	2.68B	2.30B	1.97B	2.01B
	EBIT
1.28B	1.15B	1.12B	729.10M	754.25M	676.54M
	EBITDA
2.98B	2.73B	2.40B	2.01B	1.70B	1.52B
	Net Income Common Stockholders
1.08B	951.68M	340.09M	141.21M	162.04M	-41.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.48B	3.51B	1.99B	631.68M	269.26M	1.55B
	Total Assets
44.55B	51.04B	44.01B	37.89B	34.91B	32.48B
	Total Debt
14.59B	16.76B	16.12B	14.96B	14.68B	14.22B
	Net Debt
12.11B	13.25B	14.13B	14.33B	14.41B	12.67B
	Total Liabilities
16.01B	18.47B	17.64B	16.50B	15.91B	15.26B
	Stockholders Equity
27.55B	31.96B	25.40B	20.29B	17.64B	15.97B
Cash Flow		Free Cash Flow
1.65B	2.20B	1.55B	1.30B	1.26B	1.35B
	Operating Cash Flow
1.85B	2.26B	1.60B	1.33B	1.28B	1.36B
	Investing Cash Flow
-4.93B	-5.51B	-5.71B	-3.70B	-4.52B	2.35B
	Financing Cash Flow
4.32B	4.91B	5.45B	2.76B	1.57B	-2.08B

Welltower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 151.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 151.7 is above the 20-day moving average (MA) of 148.86, above the 50-day MA of 147.55, and above the 200-day MA of 135.23, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 82.26 is Negative, 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
CTRE	80 Outperform	$5.59B	31.78	7.02%	4.13%	43.27%	80.97%
WELL	79 Outperform	$99.71B	164.37	3.52%	1.72%	23.31%	36.07%
OHI	71 Outperform	$10.67B	23.11	10.53%	7.27%	10.56%	45.37%
DOC	69 Neutral	$12.33B	43.72	3.26%	6.94%	23.65%	12.82%
VTR	64 Neutral	$88.06B	196.64	1.36%	2.81%	10.00%	―
Sector *	61 Neutral	$2.78B	10.70	0.50%	8507.83%	5.74%	-19.41%
HR	49 Neutral	$5.12B	―	-6.83%	8.52%	-7.26%	18.45%

Welltower Corporate Events

Welltower Shareholders Elect Directors and Approve Plans

At the 2025 Annual Meeting of Shareholders on May 22, 2025, Welltower Inc. shareholders elected nine directors, ratified Ernst & Young LLP as the independent auditor for 2025, approved executive compensation, and amended the 2022 Long-Term Incentive Plan. These decisions reflect shareholder support for the company’s leadership and strategic direction, potentially strengthening its governance and financial oversight.

The most recent analyst rating on (WELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Welltower stock, see the WELL Stock Forecast page.