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WELL (Welltower) Piotroski F-Score : 8 (As of Oct. 31, 2024)


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What is Welltower Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Welltower has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Welltower's Piotroski F-Score or its related term are showing as below:

WELL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Welltower was 8. The lowest was 4. And the median was 5.


Welltower Piotroski F-Score Historical Data

The historical data trend for Welltower's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Welltower Piotroski F-Score Chart

Welltower Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 4.00 6.00 8.00

Welltower Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 8.00 8.00 8.00

Competitive Comparison of Welltower's Piotroski F-Score

For the REIT - Healthcare Facilities subindustry, Welltower's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Welltower's Piotroski F-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Welltower's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Welltower's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 83.911 + 127.146 + 254.714 + 449.849 = $916 Mil.
Cash Flow from Operations was 370.502 + 406.806 + 605.419 + 684.984 = $2,068 Mil.
Revenue was 1717.949 + 1830.59 + 1792.737 + 2011.056 = $7,352 Mil.
Gross Profit was 681.871 + 733.677 + 681.44 + 798.355 = $2,895 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(41654.702 + 44012.166 + 44553.585 + 45533.937 + 48953.698) / 5 = $44941.6176 Mil.
Total Assets at the begining of this year (Sep23) was $41,655 Mil.
Long-Term Debt & Capital Lease Obligation was $16,156 Mil.
Total Current Assets was $7,115 Mil.
Total Current Liabilities was $1,734 Mil.
Net Income was -3.728 + 25.673 + 103.04 + 127.47 = $252 Mil.

Revenue was 1509.319 + 1552.149 + 1581.598 + 1626.535 = $6,270 Mil.
Gross Profit was 570.481 + 594.396 + 622.926 + 631.262 = $2,419 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(37414.488 + 37893.233 + 38493.889 + 40064.135 + 41654.702) / 5 = $39104.0894 Mil.
Total Assets at the begining of last year (Sep22) was $37,414 Mil.
Long-Term Debt & Capital Lease Obligation was $16,199 Mil.
Total Current Assets was $5,509 Mil.
Total Current Liabilities was $1,637 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Welltower's current Net Income (TTM) was 916. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Welltower's current Cash Flow from Operations (TTM) was 2,068. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=915.62/41654.702
=0.02198119

ROA (Last Year)=Net Income/Total Assets (Sep22)
=252.455/37414.488
=0.00674752

Welltower's return on assets of this year was 0.02198119. Welltower's return on assets of last year was 0.00674752. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Welltower's current Net Income (TTM) was 916. Welltower's current Cash Flow from Operations (TTM) was 2,068. ==> 2,068 > 916 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=16155.983/44941.6176
=0.35948824

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=16199.353/39104.0894
=0.41426238

Welltower's gearing of this year was 0.35948824. Welltower's gearing of last year was 0.41426238. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=7114.898/1733.712
=4.10385231

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=5509.051/1636.73
=3.36588869

Welltower's current ratio of this year was 4.10385231. Welltower's current ratio of last year was 3.36588869. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Welltower's number of shares in issue this year was 618.306. Welltower's number of shares in issue last year was 525.138. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2895.343/7352.332
=0.39379927

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2419.065/6269.601
=0.38584034

Welltower's gross margin of this year was 0.39379927. Welltower's gross margin of last year was 0.38584034. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=7352.332/41654.702
=0.17650665

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=6269.601/37414.488
=0.16757148

Welltower's asset turnover of this year was 0.17650665. Welltower's asset turnover of last year was 0.16757148. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Welltower has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Welltower  (NYSE:WELL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Welltower Piotroski F-Score Related Terms

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Welltower Business Description

Address
4500 Dorr Street, Toledo, OH, USA, 43615
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.
Executives
Kenneth J Bacon director 5404 WISCONSIN AVENUE, SUITE 410, CHEVY CHASE MD 20815
John F. Burkart officer: EVP-Chief Operating Officer C/O ESSEX PROPERTY TRUST INC., 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Ade J. Patton director 4500 DORR STREET, TOLEDO DE 43515
Dennis G Lopez director 12700 HILL COUNTRY BOULEVARD, SUITE T-200, AUSTIN TX 78738
Philip L Hawkins director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Diana Reid director 4500 DORR STREET, TOLEDO OH 43615
Ayesha Menon officer: SVP - Strategic Investments 4500 DORR STREET, TOLEDO OH 43615
Timothy Mchugh officer: SVP - Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43515
Thomas J Derosa director C/O WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
John Goodey officer: Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43615
Mercedes Kerr officer: EVP-Business Development 2449 GRIVEL PLACE, TUSTIN CA 92782
Kathryn M Sullivan director PO BOX 98029, BATON ROUGE LA 70898-9029
Karen B Desalvo director 500 W MAIN STREET, LOUISVILLE KY 40202
Johnese Spisso director 4500 DORR STREET, TOLEDO OH 43615
Shankh Mitra officer: SVP, Finance & Investments 4500 DORR STREET, TOLEDO OH 43615