WELLS FARGO & CO (WFC) Stock Fundamental Analysis
NYSE:WFC - New York Stock Exchange, Inc. - US9497461015 - Common Stock - Currency: USD
Taking everything into account, WFC scores 3 out of 10 in our fundamental rating. WFC was compared to 398 industry peers in the Banks industry. There are concerns on the financial health of WFC while its profitability can be described as average. WFC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
WFC had positive earnings in the past year.
WFC had a positive operating cash flow in the past year.
In the past 5 years WFC has always been profitable.
Of the past 5 years WFC 4 years had a positive operating cash flow.
1.2 Ratios
WFC's Return On Assets of 0.96% is fine compared to the rest of the industry. WFC outperforms 63.07% of its industry peers.
With a decent Return On Equity value of 10.39%, WFC is doing good in the industry, outperforming 70.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 10.39% | ||
| ROIC | N/A |
ROA(3y)0.85%
ROA(5y)0.74%
ROE(3y)9.01%
ROE(5y)7.82%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of WFC (22.61%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of WFC has grown nicely.
The Operating Margin and Gross Margin are not available for WFC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.61% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.91%
PM growth 5Y1.63%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
WFC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for WFC has been reduced compared to 1 year ago.
The number of shares outstanding for WFC has been reduced compared to 5 years ago.
The debt/assets ratio for WFC is higher compared to a year ago.
2.2 Solvency
WFC has a debt to FCF ratio of 91.56. This is a negative value and a sign of low solvency as WFC would need 91.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 91.56, WFC is doing worse than 88.19% of the companies in the same industry.
WFC has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
WFC has a Debt to Equity ratio of 1.55. This is amonst the worse of the industry: WFC underperforms 88.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 91.56 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.23%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.98% over the past year.
WFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.61% yearly.
Looking at the last year, WFC shows a decrease in Revenue. The Revenue has decreased by -1.39% in the last year.
The Revenue has been decreasing by -1.07% on average over the past years.
EPS 1Y (TTM)10.98%
EPS 3Y5.11%
EPS 5Y5.61%
EPS Q2Q%5.56%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%-3.42%
3.2 Future
The Earnings Per Share is expected to grow by 6.03% on average over the next years.
Based on estimates for the next years, WFC will show a small growth in Revenue. The Revenue will grow by 3.39% on average per year.
EPS Next Y2.91%
EPS Next 2Y8.59%
EPS Next 3Y10.9%
EPS Next 5Y6.03%
Revenue Next Year0.75%
Revenue Next 2Y2.76%
Revenue Next 3Y3.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WFC is valuated correctly with a Price/Earnings ratio of 12.57.
WFC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.88, WFC is valued rather cheaply.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of WFC.
60.05% of the companies in the same industry are cheaper than WFC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.20. WFC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WFC is valued more expensive than 85.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WFC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.32
PEG (5Y)2.24
EPS Next 2Y8.59%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, WFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, WFC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, WFC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of WFC decreases each year by -3.84%.
WFC has been paying a dividend for at least 10 years, so it has a reliable track record.
WFC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.84%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WFC pays out 33.49% of its income as dividend. This is a sustainable payout ratio.
DP33.49%
EPS Next 2Y8.59%
EPS Next 3Y10.9%
NYSE:WFC (5/1/2025, 2:59:09 PM)
72.39
+1.38 (+1.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners78.16%
Inst Owner Change0.13%
Ins Owners0.09%
Ins Owner Change10.1%
Market Cap236.11B
Analysts77.78
Price Target79.14 (9.32%)
Short Float %1.04%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.81
Dividend Growth(5Y)-3.84%
DP33.49%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.58%
Min EPS beat(2)15.95%
Max EPS beat(2)17.22%
EPS beat(4)4
Avg EPS beat(4)11.76%
Min EPS beat(4)1.93%
Max EPS beat(4)17.22%
EPS beat(8)8
Avg EPS beat(8)10.2%
EPS beat(12)11
Avg EPS beat(12)8.37%
EPS beat(16)15
Avg EPS beat(16)13.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2%
Max Revenue beat(2)-1.23%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-2%
Max Revenue beat(4)2.24%
Revenue beat(8)5
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.22%
Revenue beat(16)10
Avg Revenue beat(16)2.17%
PT rev (1m)-6.83%
PT rev (3m)4.08%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)5.98%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)4.55%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 10.79 | ||
| P/S | 2.87 | ||
| P/FCF | 77.8 | ||
| P/OCF | 77.8 | ||
| P/B | 1.32 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.76
EY7.96%
EPS(NY)6.71
Fwd EY9.27%
FCF(TTM)0.93
FCFY1.29%
OCF(TTM)0.93
OCFY1.29%
SpS25.23
BVpS54.92
TBVpS44.79
PEG (NY)4.32
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 10.39% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.61% | ||
| GM | N/A | ||
| FCFM | 3.69% |
ROA(3y)0.85%
ROA(5y)0.74%
ROE(3y)9.01%
ROE(5y)7.82%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.91%
PM growth 5Y1.63%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 91.56 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 16.31% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC12.23%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)152.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.98%
EPS 3Y5.11%
EPS 5Y5.61%
EPS Q2Q%5.56%
EPS Next Y2.91%
EPS Next 2Y8.59%
EPS Next 3Y10.9%
EPS Next 5Y6.03%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%-3.42%
Revenue Next Year0.75%
Revenue Next 2Y2.76%
Revenue Next 3Y3.39%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-92.48%
FCF growth 3YN/A
FCF growth 5Y-14.72%
OCF growth 1Y-92.48%
OCF growth 3YN/A
OCF growth 5Y-14.72%