Wells Fargo CDR (WFCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WFCS -
24.45 CAD
-0.27 (-1.09%)
We assign a fundamental rating of 3 out of 10 to WFCS. WFCS was compared to 24 industry peers in the Banks industry. Both the profitability and financial health of WFCS have multiple concerns. WFCS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WFCS was profitable.
- In the past year WFCS has reported a negative cash flow from operations.
- Each year in the past 5 years WFCS has been profitable.
- In multiple years WFCS reported negative operating cash flow during the last 5 years.
1.2 Ratios
- WFCS has a Return On Assets of 0.97%. This is amongst the best in the industry. WFCS outperforms 100.00% of its industry peers.
- With a Return On Equity value of 11.02%, WFCS perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 11.02% | ||
| ROIC | N/A |
ROA(3y)0.95%
ROA(5y)0.92%
ROE(3y)10.42%
ROE(5y)9.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 24.13%, WFCS perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
- In the last couple of years the Profit Margin of WFCS has grown nicely.
- WFCS 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 3Y12.79%
PM growth 5Y58.73%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- WFCS does not have a ROIC to compare to the WACC, probably because it is not profitable.
- WFCS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WFCS has less shares outstanding
- Compared to 1 year ago, WFCS 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 WFCS has dependencies on debt financing.
- WFCS's Debt to Equity ratio of 2.25 is in line compared to the rest of the industry. WFCS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.65%
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 8.08% over the past year.
- The Earnings Per Share has been growing by 71.88% on average over the past years. This is a very strong growth
- Looking at the last year, WFCS shows a small growth in Revenue. The Revenue has grown by 1.70% in the last year.
- The Revenue has been growing slightly by 2.42% on average over the past years.
EPS 1Y (TTM)8.08%
EPS 3Y19.43%
EPS 5Y71.88%
EPS Q2Q%2.53%
Revenue 1Y (TTM)1.7%
Revenue growth 3Y4.02%
Revenue growth 5Y2.42%
Sales Q2Q%4.49%
3.2 Future
- Based on estimates for the next years, WFCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.77% on average per year.
- WFCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.86% yearly.
EPS Next Y14.91%
EPS Next 2Y14.12%
EPS Next 3Y12.89%
EPS Next 5Y8.77%
Revenue Next Year5.15%
Revenue Next 2Y4.86%
Revenue Next 3Y4.86%
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. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 2.89 indicates a rather cheap valuation of WFCS.
- WFCS's Price/Earnings ratio is a bit cheaper when compared to the industry. WFCS is cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, WFCS is valued rather cheaply.
- A Price/Forward Earnings ratio of 2.51 indicates a rather cheap valuation of WFCS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WFCS indicates a somewhat cheap valuation: WFCS is cheaper than 66.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, WFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.89 | ||
| Fwd PE | 2.51 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- WFCS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- WFCS's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)0.04
EPS Next 2Y14.12%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.04%, WFCS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.05, WFCS's dividend is way lower than its industry peers. On top of this 91.67% of the companies listed in the same industry pay a better dividend than WFCS!
- WFCS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
- The dividend of WFCS decreases each year by -3.84%.
- WFCS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-3.84%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 32.40% of the earnings are spent on dividend by WFCS. This is a low number and sustainable payout ratio.
DP32.4%
EPS Next 2Y14.12%
EPS Next 3Y12.89%
Wells Fargo CDR / WFCS.CA FAQ
What is the ChartMill fundamental rating of Wells Fargo CDR (WFCS.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to WFCS.CA.
What is the valuation status for WFCS stock?
ChartMill assigns a valuation rating of 6 / 10 to Wells Fargo CDR (WFCS.CA). This can be considered as Fairly Valued.
What is the profitability of WFCS stock?
Wells Fargo CDR (WFCS.CA) has a profitability rating of 3 / 10.
What is the expected EPS growth for Wells Fargo CDR (WFCS.CA) stock?
The Earnings per Share (EPS) of Wells Fargo CDR (WFCS.CA) is expected to grow by 14.91% in the next year.
How sustainable is the dividend of Wells Fargo CDR (WFCS.CA) stock?
The dividend rating of Wells Fargo CDR (WFCS.CA) is 2 / 10 and the dividend payout ratio is 32.4%.