WELLS FARGO & CO (WFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WFC - US9497461015 - Common Stock
93.2 USD
-1.11 (-1.18%)
93.3144 USD
+0.11 (+0.12%)
WFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 388 industry peers in the Banks industry. WFC may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, WFC is valued expensive at the moment. WFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WFC had positive earnings in the past year.
In the past year WFC has reported a negative cash flow from operations.
Each year in the past 5 years WFC has been profitable.
WFC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of WFC (0.97%) is comparable to the rest of the industry.
WFC's Return On Equity of 11.02% is fine compared to the rest of the industry. WFC outperforms 74.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 11.02% | ||
| 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
WFC's Profit Margin of 24.13% is in line compared to the rest of the industry. WFC outperforms 48.45% of its industry peers.
WFC's Profit Margin has improved in the last couple of years.
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) | 24.13% | ||
| 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.
Compared to 1 year ago, WFC has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 2.25 is on the high side and indicates that WFC has dependencies on debt financing.
The Debt to Equity ratio of WFC (2.25) is worse than 89.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.76%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.15%, which is quite good.
Measured over the past 5 years, WFC shows a small growth in Earnings Per Share. The EPS has been growing by 5.61% on average per year.
The Revenue has been growing slightly by 0.47% in the past year.
Measured over the past years, WFC shows a decrease in Revenue. The Revenue has been decreasing by -1.07% on average per year.
EPS 1Y (TTM)13.15%
EPS 3Y5.11%
EPS 5Y5.61%
EPS Q2Q%9.21%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%5.25%
3.2 Future
Based on estimates for the next years, WFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.45% on average per year.
The Revenue is expected to grow by 2.75% on average over the next years.
EPS Next Y11.97%
EPS Next 2Y11.63%
EPS Next 3Y12.31%
EPS Next 5Y9.45%
Revenue Next Year1.64%
Revenue Next 2Y3.44%
Revenue Next 3Y3.7%
Revenue Next 5Y2.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 15.25, the valuation of WFC can be described as correct.
Based on the Price/Earnings ratio, WFC is valued a bit more expensive than the industry average as 69.59% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of WFC to the average of the S&P500 Index (26.51), we can say WFC is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.15, which indicates a correct valuation of WFC.
Based on the Price/Forward Earnings ratio, WFC is valued a bit more expensive than 69.59% of the companies in the same industry.
WFC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WFC's earnings are expected to grow with 12.31% in the coming years.
PEG (NY)1.27
PEG (5Y)2.72
EPS Next 2Y11.63%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
WFC has a Yearly Dividend Yield of 6.20%, which is a nice return.
WFC's Dividend Yield is rather good when compared to the industry average which is at 2.74. WFC pays more dividend than 95.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
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 32.40% of its income as dividend. This is a sustainable payout ratio.
DP32.4%
EPS Next 2Y11.63%
EPS Next 3Y12.31%
93.2
-1.11 (-1.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.11%
Inst Owner Change-28.9%
Ins Owners0.1%
Ins Owner Change0%
Market Cap292.56B
Revenue(TTM)82.78B
Net Income(TTM)19.97B
Analysts76
Price Target98.18 (5.34%)
Short Float %1.32%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
Yearly Dividend1.81
Dividend Growth(5Y)-3.84%
DP32.4%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.31%
Min EPS beat(2)6.37%
Max EPS beat(2)8.25%
EPS beat(4)4
Avg EPS beat(4)9.21%
Min EPS beat(4)6.28%
Max EPS beat(4)15.95%
EPS beat(8)8
Avg EPS beat(8)9.58%
EPS beat(12)11
Avg EPS beat(12)7.8%
EPS beat(16)15
Avg EPS beat(16)8.19%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.33%
Revenue beat(4)1
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)0.33%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)6
Avg Revenue beat(12)0.03%
Revenue beat(16)8
Avg Revenue beat(16)0.69%
PT rev (1m)2.42%
PT rev (3m)10.54%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)9.49%
EPS NY rev (1m)0.1%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 13.15 | ||
| P/S | 3.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.61 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.11
EY6.56%
EPS(NY)7.09
Fwd EY7.61%
FCF(TTM)-4.53
FCFYN/A
OCF(TTM)-4.53
OCFYN/A
SpS26.37
BVpS57.71
TBVpS47.56
PEG (NY)1.27
PEG (5Y)2.72
Graham Number89.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 11.02% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.13% | ||
| GM | N/A | ||
| FCFM | 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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 | 2.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC11.76%
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)13.15%
EPS 3Y5.11%
EPS 5Y5.61%
EPS Q2Q%9.21%
EPS Next Y11.97%
EPS Next 2Y11.63%
EPS Next 3Y12.31%
EPS Next 5Y9.45%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%5.25%
Revenue Next Year1.64%
Revenue Next 2Y3.44%
Revenue Next 3Y3.7%
Revenue Next 5Y2.75%
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-148.36%
FCF growth 3YN/A
FCF growth 5Y-14.72%
OCF growth 1Y-148.36%
OCF growth 3YN/A
OCF growth 5Y-14.72%
WELLS FARGO & CO / WFC FAQ
What is the ChartMill fundamental rating of WELLS FARGO & CO (WFC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to WFC.
What is the valuation status for WFC stock?
ChartMill assigns a valuation rating of 2 / 10 to WELLS FARGO & CO (WFC). This can be considered as Overvalued.
What is the profitability of WFC stock?
WELLS FARGO & CO (WFC) has a profitability rating of 3 / 10.
What are the PE and PB ratios of WELLS FARGO & CO (WFC) stock?
The Price/Earnings (PE) ratio for WELLS FARGO & CO (WFC) is 15.25 and the Price/Book (PB) ratio is 1.61.
What is the earnings growth outlook for WELLS FARGO & CO?
The Earnings per Share (EPS) of WELLS FARGO & CO (WFC) is expected to grow by 11.97% in the next year.