Is WELL a high-quality business?

AlphaMadera's AlphaQuality grade scores Welltower Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how WELL compares to a Buffett-style quality bar.

What is Welltower Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to WELL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes WELL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

WELL - Welltower Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $237.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

C- 48.8 / 100 composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C- 49.7

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 28.8% 50/100

Capital Efficiency

Weight: 15%

F 10.7

5yr Avg ROE 1.3% 16/100
5yr Share-Count CAGR 12.3% 0/100

Growth Quality

Weight: 15%

A+ 96.3

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 8.6% 95/100
Positive-FFO Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 19.5

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 0.00x 0/100
5yr FCF/NI 4.57x 65/100

Balance Sheet

Weight: 25%

C+ 58.6

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 31.8% 88/100
Interest Coverage (EBIT/Int) 0.26x 4/100

Stability

Weight: 10%

C 53.8

EPS Volatility (σ/μ) 0.54 27/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 1 added; 2 trimmed.

Holders: 3
Avg Δ position: -14.8%
New buys: 0
Full exits: 0

Wood decreased -52%
Greenblatt increased +31%
Cooperman decreased -23%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — FFO Margin
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr FFO/Share CAGR, Positive-FFO Years (5)
Cash Generation (15%) — AFFO Dividend Coverage, 5yr FCF/NI
Balance Sheet (25%) — Debt / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.