WELLS FARGO & CO (WFC)
US9497461015 - Common Stock
Taking everything into account, WFC scores 3 out of 10 in our fundamental rating. WFC was compared to 402 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WFC was profitable.
In the past year WFC had a positive cash flow from operations.
WFC had positive earnings in each of the past 5 years.
WFC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WFC has a Return On Assets of 0.91%. This is comparable to the rest of the industry: WFC outperforms 60.00% of its industry peers.
With a decent Return On Equity value of 9.95%, WFC is doing good in the industry, outperforming 65.75% 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
Looking at the Profit Margin, with a value of 21.19%, WFC is in line with its industry, outperforming 44.25% of the companies in the same industry.
WFC's Profit Margin has declined in the last couple of years.
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) | 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.
The number of shares outstanding for WFC has been reduced compared to 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.
WFC has a Debt to FCF ratio of 12.10. This is in the lower half of the industry: WFC underperforms 77.25% of its industry peers.
WFC has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WFC (1.62) is worse than 88.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 12.1 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.58%
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.
WFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.00% yearly.
Looking at the last year, WFC shows a small growth in Revenue. The Revenue has grown by 0.30% in the last year.
Measured over the past years, WFC shows a decrease in Revenue. The Revenue has been decreasing by -0.90% on average per year.
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
WFC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.67% yearly.
Based on estimates for the next years, WFC will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y3.08%
EPS Next 2Y3.56%
EPS Next 3Y7.75%
EPS Next 5Y-0.67%
Revenue Next Year0.04%
Revenue Next 2Y0.28%
Revenue Next 3Y1.47%
Revenue Next 5Y2.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
WFC is valuated reasonably with a Price/Earnings ratio of 11.80.
WFC's Price/Earnings ratio is in line with the industry average.
WFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.20.
With a Price/Forward Earnings ratio of 11.51, the valuation of WFC can be described as very reasonable.
WFC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WFC to the average of the S&P500 Index (23.28), we can say WFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WFC is valued a bit cheaper than 69.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| 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)3.83
PEG (5Y)3.93
EPS Next 2Y3.56%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
WFC has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
WFC's Dividend Yield is slightly below the industry average, which is at 3.28.
WFC's Dividend Yield is comparable with the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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.
The dividend of WFC decreased in the last 3 years.
Dividend Growth(5Y)-4.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WFC pays out 34.93% of its income as dividend. This is a sustainable payout ratio.
WFC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP34.93%
EPS Next 2Y3.56%
EPS Next 3Y7.75%
WELLS FARGO & CO
NYSE:WFC (11/4/2024, 8:04:00 PM)
After market: 63.66 -0.04 (-0.06%)63.7
-0.98 (-1.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap216.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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 | 11.8 | ||
| Fwd PE | 11.51 | ||
| 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)3.83
PEG (5Y)3.93
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 Y3.08%
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