WELLTOWER INC. (WELL) Stock Analysis
WELLTOWER INC. (WELL) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q4 2025.
Overall Grade: F (Concerning)
WELLTOWER INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 26.6% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 26.6% provides financial flexibility for growth and shareholder returns.
Explore WELLTOWER INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: WELLTOWER INC. earns N/A ROIC
WELLTOWER INC.'s trailing-twelve-month ROIC of N/A (sector median: 12.6%). Source: 10-Q filed 2025-10-28.
| Metric | WELL | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 12.6% |
| Return on Equity (ROE) | 2.6% | Warning | Moderate equity returns |
Cash Flow: WELLTOWER INC. generates $2.9B FCF at 26.6% margin, positive NaN/8 quarters
WELLTOWER INC. generated $2.9B in free cash flow (TTM), a 26.6% FCF margin, a margin that ranks Top 50% in Real Estate. Operating cash flow exceeds net income by 3.1x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-28.
| Metric | WELL | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 26.6% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.9B | Good | Positive cash generation |
| OCF/Net Income | 3.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: WELLTOWER INC. at 0.0x leverage
WELLTOWER INC.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-10-28.
| Metric | WELL | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: WELLTOWER INC. trades at 131.6x earnings
WELLTOWER INC. trades at a P/E of 131.6x. Free cash flow yield of 2.3% reflects market expectations for growth.
| Metric | WELL | Rating | Context |
|---|---|---|---|
| P/E Ratio | 131.6x | Warning | Premium valuation |
| EV/Sales | 10.9x | Warning | Growth premium priced in |
| FCF Yield | 2.3% | Adequate | Lower cash yield |
| Dividend Yield | 1.5% | Adequate | Growth focus over income |
Capital Allocation: WELLTOWER INC. returns 1.5% shareholder yield
WELLTOWER INC.'s total shareholder yield is 1.5% (dividends 1.5% + buybacks). Source: 10-Q filed 2025-10-28.
| Metric | WELL | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.5% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $1.9B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 26.6% | Top 50% | 147.5x above |
| Return on Equity (ROE) | 2.6% | Top 50% | 1.0x at |
| P/E Ratio | 131.6x | N/A | - |
Financial Scorecard
| Metric | WELL | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 26.6% | Excellent | Top 50% of sector (median: 0.2%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 131.6x | Warning | High expectations priced in |
| Free Cash Flow Yield | 2.3% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is WELLTOWER INC.'s Return on Invested Capital (ROIC)?
WELLTOWER INC. (WELL) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 12.6%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is WELLTOWER INC.'s Free Cash Flow Margin?
WELLTOWER INC. (WELL) has a free cash flow margin of 26.6%, generating $2.9 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is WELLTOWER INC. stock overvalued or undervalued?
WELLTOWER INC. (WELL) trades at a P/E ratio of 131.6x, which is above the sector median of N/A. The EV/Sales multiple is 10.9x. Free cash flow yield is 2.3%, reflecting growth expectations priced into the stock.
Q: Does WELLTOWER INC. pay a dividend?
WELLTOWER INC. (WELL) currently pays a dividend yield of 1.5%. Including share buybacks, the total shareholder yield is 1.5%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is WELLTOWER INC.'s revenue and earnings growth?
WELLTOWER INC. (WELL) grew revenue by 35.6% year-over-year. Earnings per share decreased by 10.3% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does WELLTOWER INC. compare to competitors in Real Estate?
Compared to other companies in Real Estate, WELLTOWER INC. (WELL) shows: ROIC of N/A is below the sector median of 12.6% (NaNx median). FCF margin of 26.6% exceeds the sector median of 0.2% (Top 33% of sector). These rankings are based on MetricDuck's analysis of all Real Estate companies with available SEC filings.
Q: What warning signs should I watch for with WELLTOWER INC.?
WELLTOWER INC. (WELL) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.