WELLS FARGO & CO (WFC)

US9497461015 - Common Stock

57.61  +0.93 (+1.64%)

After market: 57.6 -0.01 (-0.02%)

Fundamental Rating

3

WFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 415 industry peers in the Banks industry. WFC may be in some trouble as it scores bad on both profitability and health. WFC has a correct valuation and a medium growth rate.



2

1. Profitability

1.1 Basic Checks

In the past year WFC was profitable.
WFC had a positive operating cash flow in the past year.
In the past 5 years WFC has always been profitable.
WFC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

WFC has a Return On Assets of 0.93%. This is comparable to the rest of the industry: WFC outperforms 53.01% of its industry peers.
WFC's Return On Equity of 9.68% is in line compared to the rest of the industry. WFC outperforms 51.08% of its industry peers.
Industry RankSector Rank
ROA 0.93%
ROE 9.68%
ROIC N/A
ROA(3y)0.88%
ROA(5y)0.73%
ROE(3y)9.15%
ROE(5y)7.62%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 21.77%, WFC is doing worse than 62.17% of the companies in the same industry.
In the last couple of years the Profit Margin of WFC has declined.
WFC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 21.77%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y108.41%
PM growth 5Y-1.88%
GM growth 3YN/A
GM growth 5YN/A

1

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

The Debt to FCF ratio of WFC is 6.42, which is on the high side as it means it would take WFC, 6.42 years of fcf income to pay off all of its debts.
WFC has a worse Debt to FCF ratio (6.42) than 72.29% of its industry peers.
WFC has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
WFC's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. WFC is outperformed by 87.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF 6.42
Altman-Z N/A
ROIC/WACCN/A
WACC11.52%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

4

3. Growth

3.1 Past

WFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.94%, which is quite impressive.
Measured over the past 5 years, WFC shows a small growth in Earnings Per Share. The EPS has been growing by 3.00% on average per year.
The Revenue has grown by 11.92% in the past year. This is quite good.
The Revenue has been decreasing by -0.90% on average over the past years.
EPS 1Y (TTM)42.94%
EPS 3Y132.61%
EPS 5Y3%
EPS growth Q2Q111.48%
Revenue 1Y (TTM)11.92%
Revenue growth 3Y3.61%
Revenue growth 5Y-0.9%
Revenue growth Q2Q4.16%

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 2.39% on average per year.
Based on estimates for the next years, WFC will show a small growth in Revenue. The Revenue will grow by 1.28% on average per year.
EPS Next Y-6.87%
EPS Next 2Y2.19%
EPS Next 3Y7.43%
EPS Next 5Y2.39%
Revenue Next Year-2.68%
Revenue Next 2Y-0.52%
Revenue Next 3Y1.28%
Revenue Next 5YN/A

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 decreasing.
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

4. Valuation

4.1 Price/Earnings Ratio

WFC is valuated reasonably with a Price/Earnings ratio of 11.16.
WFC's Price/Earnings ratio is a bit more expensive when compared to the industry. WFC is more expensive than 62.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, WFC is valued rather cheaply.
A Price/Forward Earnings ratio of 11.99 indicates a reasonable valuation of WFC.
WFC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, WFC is valued a bit cheaper.
Industry RankSector Rank
PE 11.16
Fwd PE 11.99

4.2 Price Multiples

86.02% of the companies in the same industry are more expensive than WFC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.11
EV/EBITDA N/A

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)3.72
EPS Next 2Y2.19%
EPS Next 3Y7.43%

3

5. Dividend

5.1 Amount

WFC has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.70, WFC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, WFC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.42%

5.2 History

The dividend of WFC decreases each year by -4.35%.
WFC has paid a dividend for at least 10 years, which is a reliable track record.
WFC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.35%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

32.98% of the earnings are spent on dividend by WFC. This is a low number and sustainable payout ratio.
DP32.98%
EPS Next 2Y2.19%
EPS Next 3Y7.43%

WELLS FARGO & CO

NYSE:WFC (3/27/2024, 8:04:00 PM)

After market: 57.6 -0.01 (-0.02%)

57.61

+0.93 (+1.64%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap206.10B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.42%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 11.16
Fwd PE 11.99
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.72
Profitability
Industry RankSector Rank
ROA 0.93%
ROE 9.68%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 21.77%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)42.94%
EPS 3Y132.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.92%
Revenue growth 3Y3.61%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y