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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Welltower's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -1.50%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Welltower's 3-Year ROIIC % or its related term are showing as below:
FRA:HCW's 3-Year ROIIC % is ranked worse than 75.43% of 692
companies
in the REITs industry
Industry Median: 3.555
vs FRA:HCW: -1.50
Welltower (FRA:HCW) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Welltower 3-Year ROIIC % Related Terms
Welltower 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Welltower's 3-Year ROIIC % 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.
FRA:HCW vs VTR, DOC, OHI: 3-Year ROIIC % Comparison
For the REIT - Healthcare Facilities subindustry, Welltower's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs REITs Industry
For the REITs industry and Real Estate sector, Welltower's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Welltower's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Welltower (FRA:HCW) has a 3-Year ROIIC % of -1.50 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Welltower and its competitors. According to the industry distribution chart, Welltower ranks #522 out of 692 companies in the REITs industry, placing it in the top 75.4%.
Is Welltower's 3-Year ROIIC % too high?
Welltower's current 3-Year ROIIC % is -1.50. Based on the distribution chart, Welltower ranks #522 out of 692 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Welltower has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Welltower's 3-Year ROIIC % compare to VTR and DOC?
According to the REITs industry distribution chart, Welltower ranks #522 out of 692 companies for 3-Year ROIIC %. This places Welltower in the lower half of its industry. The industry median 3-Year ROIIC % is 3.56. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a REITs company?
The median 3-Year ROIIC % among REITs companies is 3.56, based on 692 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Welltower and its competitors. For the REITs industry, the median 3-Year ROIIC % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Welltower's current 3-Year ROIIC % is -1.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Welltower stock overvalued right now?
Based on GuruFocus' analysis, Welltower (FRA:HCW) is currently considered Modestly Overvalued. The stock's GF Value™ is €158.05, compared to a current price of €202.50 — trading 28.1% above its estimated fair value. The current 3-Year ROIIC % is -1.50. Welltower's overall GF Score™ is 84/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Welltower (FRA:HCW), the current 3-Year ROIIC % is -1.50 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Welltower (FRA:HCW) Overvalued in 2026?
Based on GuruFocus' analysis, Welltower stock appears to be overvalued.
The current stock price of €202.50 is trading 28.1% above its estimated GF Value™ of €158.05.
GuruFocus considers Welltower to be Modestly Overvalued.
Key valuation signals for FRA:HCW:
3-Year ROIIC %: -1.50
GF Value™: €158.05 vs. price of €202.50 (28.1% above fair value)
No single metric tells the full story. See the FRA:HCW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Welltower owns a diversified healthcare portfolio of 2,800 in-place properties spread across the senior housing, medical office, and skilled nursing/postacute care sectors. The portfolio includes over 900 properties in 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.
84GF Score
Get the complete analysis for FRA:HCW
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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