Aureus
AExcellent

Welltower Inc.(WELL)

A

Financial data as of Dec 31, 2025Improving · Real Estate

FCF Margin12.1%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$2.8B
Revenue$10.7B
Net Cash-$16.3BNet debt position
Debt / FCF16.6xElevated debt burden
Current Ratio5.34Adequate short-term liquidity
YoY FCF Growth+12.8%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-1High debt-to-FCF ratio (16.6x; 9.5x sector-adjusted)
→
+0.5Healthy FCF margin with manageable debt (12.1%, 16.6x; 9.5x sector-adjusted)
→
+0.5Modest YoY FCF growth (12.8% YoY)
→
-0.5Highly volatile FCF (consistency: 1.63)
→
+0.5Strong revenue growth (38.4% YoY) offsets compressed FCF margin
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (12.1%)
  • Strong liquidity (current ratio: 5.34)
  • Strong revenue growth (38.4% YoY)
  • FCF trend is improving

Concerns

  • Heavy debt position ($16.3B net debt, 16.6x FCF)
  • High debt-to-FCF ratio (16.6x)
  • Highly volatile quarterly FCF
Cash conversion ratio unavailable or not meaningfulSBC-adjusted FCF used — $1.6B stock-based compensation (55% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin12.1%
Net Margin8.8%
Operating CF Margin27.0%
CapEx Ratio0.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$16.3BNet debt position
Debt / FCF16.6xElevated debt burden
Current Ratio5.34Strong liquidity
Debt / Equity0.51Low leverage

Quarterly FCF Trend

+12.8% YoYImproving (+12.8%)

Free cash flow per quarter

Sector Comparison — Real Estate

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameWelltower Inc.
SectorReal Estate
Free Cash Flow$2.8B
Revenue$10.7B
Net Income$936.8M
Operating Cash Flow$2.9B
Capital Expenditure$33.8M
FCF Margin12.1%
Cash Conversion Rate—
Net Margin8.8%
Total Debt$21.4B
Total Cash$5.0B
Net Cash-$16.3B
Current Ratio5.34
Debt / Equity0.51
Debt / FCF16.6x
YoY FCF Growth+12.8%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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