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Welltower Inc WELL

Morningstar Rating
$102.32 −0.71 (0.69%)
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Company Report

Senior Housing Should Continue to Drive Strong NOI Growth for Welltower as Baby Boomers Age

The top healthcare real estate stands to disproportionately benefit from the Affordable Care Act. There is an increased focus on higher-quality care in lower-cost settings. The best owners and operators in the industry, which can provide better outcomes while driving greater efficiencies, should see demand funneled to them from the best healthcare systems. Additionally, the baby boomer generation is starting to enter its senior years, and the 80-and-older population, which spends more than 4 times on healthcare per capita than the national average, should almost double over the next 10 years. Long term, the best healthcare companies are well positioned to take advantage of these industry tailwinds.

Price vs Fair Value

WELL is trading at a 519% premium.
Price
$102.32
Fair Value
$682.00
Uncertainty
Medium
1-Star Price
$721.14
5-Star Price
$34.40
Economic Moat
Sgqtc
Capital Allocation
Vcnrdsktk

Bulls Say, Bears Say

Bulls

The firm’s intense focus on tenant and operator partnerships produces new off-market investment opportunities, benefiting shareholders. It should see same-store NOI growth above its peers in the senior housing sector due to its operational expertise and the strength of these relationships.

Bears

Healthcare reform notably affects the operations of Welltower and its tenants, especially its exposure to the post-acute business. If the company does not anticipate and adapt to changes, the company could face significant rent cuts or asset dispositions.

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News

Trading Information

Previous Close Price
$103.03
Day Range
$101.80103.35
52-Week Range
$75.86105.69
Bid/Ask
$100.80 / $104.48
Market Cap
$61.18 Bil
Volume/Avg
17.6 Mil / 2.6 Mil

Key Statistics

Price/Earnings (Normalized)
113.83
Price/Sales
8.17
Dividend Yield (Trailing)
2.38%
Dividend Yield (Forward)
2.38%
Total Yield
2.38%

Company Profile

Welltower owns a diversified healthcare portfolio of 2,096 in-place properties spread across the senior housing, medical office, and skilled nursing/post-acute care sectors. The portfolio includes over 100 properties in both Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to that of the United States.
Sector
Real Estate
Industry
REIT - Healthcare Facilities
Stock Style Box
Large Growth
Total Number of Employees
533

Competitors

Valuation

Metric
WELL
VTR
DOC
Price/Earnings (Normalized)
113.8348.01
Price/Book Value
2.192.171.52
Price/Sales
8.174.444.78
Price/Cash Flow
30.9617.4313.19
Price/Earnings
WELL
VTR
DOC

Financial Strength

Metric
WELL
VTR
DOC
Quick Ratio
3.770.770.24
Current Ratio
3.830.850.27
Interest Coverage
1.740.881.93
Quick Ratio
WELL
VTR
DOC

Profitability

Metric
WELL
VTR
DOC
Return on Assets (Normalized)
1.20%−0.20%1.76%
Return on Equity (Normalized)
2.13%−0.49%4.21%
Return on Invested Capital (Normalized)
2.73%1.99%3.34%
Return on Assets
WELL
VTR
DOC
See how this stock stacks up to its competitors with Morningstar Investor

REIT - Healthcare Facilities Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Ventas Inc
VTR
HgbjbfnhjKmwqj$20.4 Bil
Healthpeak Properties Inc
DOC
PxbjpvwwvZzqx$13.5 Bil
Omega Healthcare Investors Inc
OHI
Tdh$8.2 Bil
Healthcare Realty Trust Inc
HR
Yjf$6.1 Bil
CareTrust REIT Inc
CTRE
Prrtt$3.5 Bil
Sabra Health Care REIT Inc
SBRA
Gcqw$3.4 Bil
Aedifica SA
AEDFF
Qlrhl$2.9 Bil
National Health Investors Inc
NHI
Ncv$2.9 Bil
Medical Properties Trust Inc
MPW
Tynl$2.9 Bil

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