WELLS FARGO & CO (WFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WFC - US9497461015 - Common Stock
90.06 USD
+0.23 (+0.26%)
90.06 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to WFC. WFC was compared to 387 industry peers in the Banks industry. WFC may be in some trouble as it scores bad on both profitability and health. WFC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WFC had positive earnings in the past year.
WFC had a negative operating cash flow in the past year.
WFC had positive earnings in each of the past 5 years.
Of the past 5 years WFC 4 years had a positive operating cash flow.
1.2 Ratios
WFC's Return On Assets of 0.97% is in line compared to the rest of the industry. WFC outperforms 57.36% of its industry peers.
The Return On Equity of WFC (11.02%) is better than 74.42% 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
With a Profit Margin value of 24.13%, WFC perfoms like the industry average, outperforming 48.58% of the companies in the same industry.
WFC's Profit Margin has improved in the last couple of years.
WFC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| 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.
Compared to 1 year ago, WFC has less shares outstanding
WFC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WFC is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 2.25 is on the high side and indicates that WFC has dependencies on debt financing.
WFC has a worse Debt to Equity ratio (2.25) than 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.84%
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 13.15% 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 small growth in Revenue. The Revenue has grown by 0.47% in the last year.
WFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.07% yearly.
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
WFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.45% yearly.
The Revenue is expected to grow by 2.75% on average over the next years.
EPS Next Y11.98%
EPS Next 2Y11.27%
EPS Next 3Y12.21%
EPS Next 5Y9.45%
Revenue Next Year1.6%
Revenue Next 2Y3.35%
Revenue Next 3Y3.64%
Revenue Next 5Y2.75%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 14.74.
WFC's Price/Earnings ratio is a bit more expensive when compared to the industry. WFC is more expensive than 67.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, WFC is valued a bit cheaper.
WFC is valuated correctly with a Price/Forward Earnings ratio of 12.78.
Based on the Price/Forward Earnings ratio, WFC is valued a bit more expensive than 68.48% 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 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.78 |
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.
WFC's earnings are expected to grow with 12.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)2.63
EPS Next 2Y11.27%
EPS Next 3Y12.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, WFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.11, WFC is paying slightly less dividend.
WFC's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 2Y11.27%
EPS Next 3Y12.21%
90.06
+0.23 (+0.26%)
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 Change0.11%
Market Cap282.71B
Revenue(TTM)82.78B
Net Income(TTM)19.97B
Analysts76
Price Target95.86 (6.44%)
Short Float %1.29%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1.81
Dividend Growth(5Y)-3.84%
DP32.4%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)0.9%
PT rev (3m)7.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.34%
EPS NY rev (1m)0.11%
EPS NY rev (3m)4.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.78 | ||
| P/S | 3.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.56 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.11
EY6.78%
EPS(NY)7.04
Fwd EY7.82%
FCF(TTM)-4.53
FCFYN/A
OCF(TTM)-4.53
OCFYN/A
SpS26.37
BVpS57.71
TBVpS47.56
PEG (NY)1.23
PEG (5Y)2.63
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
WACC11.84%
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 Y11.98%
EPS Next 2Y11.27%
EPS Next 3Y12.21%
EPS Next 5Y9.45%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%5.25%
Revenue Next Year1.6%
Revenue Next 2Y3.35%
Revenue Next 3Y3.64%
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 of WELLS FARGO & CO (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 is the valuation of WELLS FARGO & CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WELLS FARGO & CO (WFC) is 14.74 and the Price/Book (PB) ratio is 1.56.
What is the expected EPS growth for WELLS FARGO & CO (WFC) stock?
The Earnings per Share (EPS) of WELLS FARGO & CO (WFC) is expected to grow by 11.98% in the next year.