WELLS FARGO & CO (WFC)
US9497461015 - Common Stock
WFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 404 industry peers in the Banks industry. Both the profitability and financial health of WFC have multiple concerns. WFC has a valuation in line with the averages, but it does not seem to be growing.
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
The Return On Assets of WFC (0.91%) is better than 60.60% of its industry peers.
With a decent Return On Equity value of 9.95%, WFC is doing good in the industry, outperforming 66.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 9.95% | ||
| ROIC | N/A |
ROA(3y)0.89%
ROA(5y)0.74%
ROE(3y)9.25%
ROE(5y)7.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WFC's Profit Margin of 21.19% is in line compared to the rest of the industry. WFC outperforms 43.64% of its industry peers.
WFC's Profit Margin has declined 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) | 21.19% | ||
| 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
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
WFC has a debt to FCF ratio of 12.10. This is a negative value and a sign of low solvency as WFC would need 12.10 years to pay back of all of its debts.
The Debt to FCF ratio of WFC (12.10) is worse than 76.06% of its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that WFC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.62, WFC is doing worse than 89.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 12.1 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.42%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.54%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.00% on average over the past years.
WFC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.30%.
WFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.90% yearly.
EPS 1Y (TTM)20.54%
EPS 3Y132.61%
EPS 5Y3%
EPS Q2Q%9.35%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y3.61%
Revenue growth 5Y-0.9%
Sales Q2Q%-1.93%
3.2 Future
Based on estimates for the next years, WFC will show a decrease in Earnings Per Share. The EPS will decrease by -0.67% on average per year.
WFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
EPS Next Y3.2%
EPS Next 2Y3.6%
EPS Next 3Y7.66%
EPS Next 5Y-0.67%
Revenue Next Year0.03%
Revenue Next 2Y0.22%
Revenue Next 3Y1.46%
Revenue Next 5Y2.01%
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.
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 13.86 indicates a correct valuation of WFC.
Compared to the rest of the industry, the Price/Earnings ratio of WFC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.96, WFC is valued rather cheaply.
A Price/Forward Earnings ratio of 13.51 indicates a correct valuation of WFC.
WFC's Price/Forward Earnings is on the same level as the industry average.
WFC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 13.51 |
4.2 Price Multiples
67.08% of the companies in the same industry are more expensive than WFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.59 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WFC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.32
PEG (5Y)4.61
EPS Next 2Y3.6%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
WFC has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
WFC's Dividend Yield is slightly below the industry average, which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.23, WFC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
34.93% of the earnings are spent on dividend by WFC. This is a low number and 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.
DP34.93%
EPS Next 2Y3.6%
EPS Next 3Y7.66%
WELLS FARGO & CO
NYSE:WFC (11/21/2024, 8:04:00 PM)
Premarket: 74.9 +0.07 (+0.09%)74.83
+1.25 (+1.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap250.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 13.51 | ||
| 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)4.32
PEG (5Y)4.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 9.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 21.19% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)20.54%
EPS 3Y132.61%
EPS 5Y
EPS Q2Q%
EPS Next Y3.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.3%
Revenue growth 3Y3.61%
Revenue growth 5Y
Sales 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