WELLS FARGO & CO (WFC) Stock Fundamental Analysis
USA - NYSE:WFC - US9497461015 - Common Stock
85.05 USD
+0.35 (+0.41%)
85.1 USD
+0.05 (+0.06%)
Taking everything into account, WFC scores 3 out of 10 in our fundamental rating. WFC was compared to 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.
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
With a decent Return On Assets value of 0.98%, WFC is doing good in the industry, outperforming 61.34% of the companies in the same industry.
WFC has a Return On Equity of 10.76%. This is in the better half of the industry: WFC outperforms 74.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.76% | ||
| 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 has a Profit Margin (23.84%) which 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) | 23.84% | ||
| 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.
WFC has less shares outstanding than it did 1 year ago.
WFC has less shares outstanding than it did 5 years ago.
WFC has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 2.01 is on the high side and indicates that WFC has dependencies on debt financing.
WFC has a Debt to Equity ratio of 2.01. This is amonst the worse of the industry: WFC underperforms 89.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.9%
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.
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 small growth in Earnings Per Share. The EPS will grow by 7.29% on average per year.
The Revenue is expected to grow by 2.75% on average over the next years.
EPS Next Y11.86%
EPS Next 2Y11.23%
EPS Next 3Y12.11%
EPS Next 5Y7.29%
Revenue Next Year1.56%
Revenue Next 2Y3.34%
Revenue Next 3Y3.64%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.92 indicates a correct valuation of WFC.
Based on the Price/Earnings ratio, WFC is valued a bit more expensive than the industry average as 63.92% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.89, WFC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.08, the valuation of WFC can be described as correct.
67.01% of the companies in the same industry are cheaper than WFC, based on the Price/Forward Earnings ratio.
WFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 12.08 |
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 12.11% in the coming years.
PEG (NY)1.17
PEG (5Y)2.48
EPS Next 2Y11.23%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
WFC has a Yearly Dividend Yield of 2.07%.
WFC's Dividend Yield is slightly below the industry average, which is at 3.39.
WFC's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
The dividend of WFC decreases each year by -3.84%.
WFC has paid a dividend for at least 10 years, which is 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
32.75% of the earnings are spent on dividend by WFC. This is a low number and sustainable payout ratio.
DP32.75%
EPS Next 2Y11.23%
EPS Next 3Y12.11%
85.05
+0.35 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.15%
Inst Owner Change0.11%
Ins Owners0.1%
Ins Owner Change0.11%
Market Cap267.82B
Revenue(TTM)82.78B
Net Income(TTM)19.48B
Analysts76
Price Target95 (11.7%)
Short Float %1.02%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1.81
Dividend Growth(5Y)-3.84%
DP32.75%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.26%
Min EPS beat(2)6.28%
Max EPS beat(2)8.25%
EPS beat(4)4
Avg EPS beat(4)11.92%
Min EPS beat(4)6.28%
Max EPS beat(4)17.22%
EPS beat(8)8
Avg EPS beat(8)10.15%
EPS beat(12)11
Avg EPS beat(12)8.75%
EPS beat(16)15
Avg EPS beat(16)9.14%
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)-0.73%
Revenue beat(8)3
Avg Revenue beat(8)-0.31%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)8
Avg Revenue beat(16)0.77%
PT rev (1m)6.58%
PT rev (3m)7.02%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)4.66%
EPS NY rev (3m)7.98%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 12.08 | ||
| P/S | 3.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.48 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.11
EY7.18%
EPS(NY)7.04
Fwd EY8.28%
FCF(TTM)-2.9
FCFYN/A
OCF(TTM)-2.9
OCFYN/A
SpS25.95
BVpS57.51
TBVpS47.03
PEG (NY)1.17
PEG (5Y)2.48
Graham Number88.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.76% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.84% | ||
| 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 | 2.01 | ||
| 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
WACC11.9%
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 Y11.86%
EPS Next 2Y11.23%
EPS Next 3Y12.11%
EPS Next 5Y7.29%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%5.25%
Revenue Next Year1.56%
Revenue Next 2Y3.34%
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-135.28%
FCF growth 3YN/A
FCF growth 5Y-14.72%
OCF growth 1Y-135.28%
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 3 / 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 13.92 and the Price/Book (PB) ratio is 1.48.
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 11.86% in the next year.