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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2384
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$119.1B
Shankh Mitra
Welltower Inc. (NYSE:WELL) is an S&P 500 company headquartered in Toledo, Ohio. 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.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = WELL ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$WELL WELLTOWER INC. | 48 | 24 | 27 | 75 | 111.7x | 17.4x | 3.0% | 1.9% | 40.6% | 74.3% | 13.8% | 47.2% | 1.5% | 45.0x | $119.1B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
WELLTOWER INC. (WELL) receives a "Reduce" rating with a composite score of 47.6/100. It ranks #2384 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for WELL.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 24 | 10 | +14ALPHA |
| MOMENTUM | 75 | 84 | -9DRAG |
| VALUATION | 27 | 19 | +8ALPHA |
| INVESTMENT | 24 | 13 | +11ALPHA |
| STABILITY | 81 | 88 | -7DRAG |
| SHORT INT | 40 | 36 | +4NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 84.1% vs WACC 9.0% (spread +75.1%)
GM 41% vs sector 78%, OM 74% vs sector 18%
Capital turnover 0.87x
Rev growth 47%, 10yr history
Interest coverage 16.0x, Net debt/EBITDA 1.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate WELLTOWER INC. (WELL) as a Reduce with a composite score of 47.6/100 at a current price of $209.05. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
WELLTOWER INC. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 47.6/100 places it at rank #2384 in our full universe.
The near-term outlook is constructive, with revenue growing at 47% and momentum in the 75th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Low
Standard
Fair Value
Gross margins of 41% signal strong pricing power.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 111.7x leaves little room for execution misses.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
WELLTOWER INC. represents a reduce based on multi-factor quantitative performance.
WELLTOWER INC. receives a Reduce rating from our analysis, with a composite score of 47.6/100 and 2 out of 5 stars, ranking #2384 out of 7,333 stocks. WELL's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
WELLTOWER INC. registers a weak quality score of just 24/100, indicating significant profitability challenges. The company reports a return on equity of 3.0% (sector avg: 9.0%), gross margins of 40.6% (sector avg: 77.7%), net margins of 13.8% (sector avg: 21.9%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
WELL registers a value score of just 27/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/E ratio of 111.67x, an EV/EBITDA of 17.43x, a P/B ratio of 3.38x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
WELLTOWER INC.'s investment score of 24/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 47.2% vs. a sector average of 10.7% and a return on assets of 1.9% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
WELL shows strong momentum characteristics with a score of 75/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 47.2% year-over-year, while a beta of 0.29 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
WELL shows good financial stability with a score of 81/100. Key stability metrics include a beta of 0.29 and a debt-to-equity ratio of 45.00x (sector avg: 0.5x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 40/100 for WELL suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 45.00x). With a $119.1B market cap (large-cap), WELLTOWER INC. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
WELL offers a modest dividend yield of 1.5%. This compares to a sector average dividend yield of 2.0%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
WELLTOWER INC. is a large-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2384 of 7,333 overall (67th percentile). Key comparisons include ROE of 3.0% trailing the 9.0% sector median and operating margins of 74.3% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While WELL currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Quality (24) would have the largest impact on the composite score.
EV/EBITDA 124% ABOVE SECTOR MEDIAN
ROE 66% BELOW SECTOR MEDIAN
Gross Margin 48% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081

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