WELLS FARGO & CO(NYSE:WFC) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, WFC scores 2 out of 10 in our fundamental rating. WFC was compared to 404 industry peers in the Banks industry. WFC may be in some trouble as it scores bad on both profitability and health. WFC is valued expensive and it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

WFC had positive earnings in the past year.

In the past year WFC had a positive cash flow from operations.

Each year in the past 5 years WFC has been profitable.

The reported operating cash flow has been mixed in the past 5 years: WFC reported negative operating cash flow in multiple years.

1.2 Ratios

With a decent Return On Assets value of 0.88%, WFC is doing good in the industry, outperforming 60.05% of the companies in the same industry.

WFC has a Return On Equity of 9.26%. This is in the better half of the industry: WFC outperforms 62.56% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.88%
ROE	9.26%
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

The Profit Margin of WFC (20.59%) is worse than 60.55% of its industry peers.

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)	20.59%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

Compared to 5 years ago, WFC has less shares outstanding

Compared to 1 year ago, WFC has a worse debt to assets ratio.

2.2 Solvency

WFC has a debt to FCF ratio of 23.26. This is a negative value and a sign of low solvency as WFC would need 23.26 years to pay back of all of its debts.

WFC has a worse Debt to FCF ratio (23.26) than 77.64% of its industry peers.

A Debt/Equity ratio of 1.57 is on the high side and indicates that WFC has dependencies on debt financing.

With a Debt to Equity ratio value of 1.57, WFC is not doing good in the industry: 89.95% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.57
Debt/FCF	23.26
Altman-Z	N/A

ROIC/WACCN/A

WACC10.23%

2.3 Liquidity

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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

WFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.27%, which is quite good.

The Earnings Per Share has been growing slightly by 5.61% on average over the past years.

The Revenue has decreased by -0.36% in the past year.

The Revenue has been decreasing by -1.07% on average over the past years.

EPS 1Y (TTM)10.27%

EPS 3Y5.11%

EPS 5Y5.61%

EPS Q2Q%22.48%

Revenue 1Y (TTM)-0.36%

Revenue growth 3Y1.3%

Revenue growth 5Y-1.07%

Sales Q2Q%-0.49%

3.2 Future

Based on estimates for the next years, WFC will show a decrease in Earnings Per Share. The EPS will decrease by -1.70% on average per year.

Based on estimates for the next years, WFC will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.

EPS Next Y4.45%

EPS Next 2Y10.38%

EPS Next 3Y11.95%

EPS Next 5Y-1.7%

Revenue Next Year2.68%

Revenue Next 2Y3.58%

Revenue Next 3Y3.92%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.62, WFC is valued correctly.

The rest of the industry has a similar Price/Earnings ratio as WFC.

WFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.

WFC is valuated correctly with a Price/Forward Earnings ratio of 13.04.

61.81% 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 valuation a bit cheaper than the S&P500 average which is at 22.68.

		Industry Rank	Sector Rank
PE	13.62
Fwd PE	13.04

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, WFC is valued a bit more expensive than 66.83% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	20.67
EV/EBITDA	N/A

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

PEG (NY)3.06

PEG (5Y)2.43

EPS Next 2Y10.38%

EPS Next 3Y11.95%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.03%, WFC has a reasonable but not impressive dividend return.

Compared to an average industry Dividend Yield of 3.15, WFC is paying slightly less dividend.

Compared to an average S&P500 Dividend Yield of 2.29, WFC has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.03%

5.2 History

The dividend of WFC decreases each year by -4.35%.

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)-4.35%

Div Incr Years3

Div Non Decr Years3

5.3 Sustainability

WFC pays out 36.60% of its income as dividend. This is a sustainable payout ratio.

The Dividend Rate of WFC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.

DP36.6%

EPS Next 2Y10.38%

EPS Next 3Y11.95%

More info and screens

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WELLS FARGO & CO

NYSE:WFC (2/21/2025, 8:04:00 PM)

After market: 77.4181 -0.08 (-0.11%)

77.5

-1.13 (-1.44%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)01-15 2025-01-15/bmo

Earnings (Next)07-15 2025-07-15/bmo

Inst Owners77.93%

Inst Owner Change-0.75%

Ins Owners0.08%

Ins Owner Change5.08%

Market Cap254.89B

Analysts76.55

Price Target83.64 (7.92%)

Short Float %0.83%

Short Ratio1.79

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.03%

Yearly Dividend1.57

Dividend Growth(5Y)-4.35%

DP36.6%

Div Incr Years3

Div Non Decr Years3

Ex-Date02-07 2025-02-07 (0.4)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)9.57%

Min EPS beat(2)1.93%

Max EPS beat(2)17.22%

EPS beat(4)4

Avg EPS beat(4)9.95%

Min EPS beat(4)1.93%

Max EPS beat(4)17.22%

EPS beat(8)7

Avg EPS beat(8)7.09%

EPS beat(12)11

Avg EPS beat(12)7.84%

EPS beat(16)15

Avg EPS beat(16)13.2%

Revenue beat(2)1

Avg Revenue beat(2)-0.14%

Min Revenue beat(2)-1.23%

Max Revenue beat(2)0.95%

Revenue beat(4)2

Avg Revenue beat(4)0.46%

Min Revenue beat(4)-1.23%

Max Revenue beat(4)2.24%

Revenue beat(8)5

Avg Revenue beat(8)0.83%

Revenue beat(12)7

Avg Revenue beat(12)1.44%

Revenue beat(16)11

Avg Revenue beat(16)2.35%

PT rev (1m)9.98%

PT rev (3m)23.73%

EPS NQ rev (1m)1.86%

EPS NQ rev (3m)1.96%

EPS NY rev (1m)6.12%

EPS NY rev (3m)7.31%

Revenue NQ rev (1m)0.51%

Revenue NQ rev (3m)0.54%

Revenue NY rev (1m)1.64%

Revenue NY rev (3m)2.43%

Valuation

		Industry Rank	Sector Rank
PE	13.62
Fwd PE	13.04
P/S	3.09
P/FCF	20.67
P/OCF	20.67
P/B	1.39
P/tB	1.69
EV/EBITDA	N/A

EPS(TTM)5.69

EY7.34%

EPS(NY)5.94

Fwd EY7.67%

FCF(TTM)3.75

FCFY4.84%

OCF(TTM)3.75

OCFY4.84%

SpS25.05

BVpS55.72

TBVpS45.76

PEG (NY)3.06

PEG (5Y)2.43

Profitability

		Industry Rank	Sector Rank
ROA	0.88%
ROE	9.26%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	20.59%
GM	N/A
FCFM	14.97%

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

ROICexcg growth 3YN/A

ROICexcg 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-Score4

Asset Turnover0.04

Health

		Industry Rank	Sector Rank
Debt/Equity	1.57
Debt/FCF	23.26
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	72.7%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score4

WACC10.23%

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)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)10.27%

EPS 3Y5.11%

EPS 5Y5.61%

EPS Q2Q%22.48%

EPS Next Y4.45%

EPS Next 2Y10.38%

EPS Next 3Y11.95%

EPS Next 5Y-1.7%

Revenue 1Y (TTM)-0.36%

Revenue growth 3Y1.3%

Revenue growth 5Y-1.07%

Sales Q2Q%-0.49%

Revenue Next Year2.68%

Revenue Next 2Y3.58%

Revenue Next 3Y3.92%

Revenue Next 5YN/A

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-58.05%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-58.05%

OCF growth 3YN/A

OCF growth 5YN/A

WELLS FARGO & CO (WFC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens