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

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to WFC. WFC was compared to 405 industry peers in the Banks industry. WFC has a bad profitability rating. Also its financial health evaluation is rather negative. WFC has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

WFC had positive earnings in the past year.

WFC had a positive operating cash flow in the past year.

In the past 5 years WFC has always been profitable.

In multiple years WFC reported negative operating cash flow during the last 5 years.

1.2 Ratios

WFC's Return On Assets of 0.88% is fine compared to the rest of the industry. WFC outperforms 61.06% of its industry peers.

WFC has a Return On Equity of 9.26%. This is in the better half of the industry: WFC outperforms 63.32% 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

WFC's Profit Margin of 20.59% is in line compared to the rest of the industry. WFC outperforms 40.20% 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.

WFC has less shares outstanding than it did 1 year ago.

Compared to 5 years ago, WFC has less shares outstanding

The debt/assets ratio for WFC is higher compared to a year ago.

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.

Looking at the Debt to FCF ratio, with a value of 23.26, WFC is doing worse than 78.64% of the companies in the same industry.

WFC has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.

With a Debt to Equity ratio value of 1.57, WFC is not doing good in the industry: 90.20% 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

WACC10.49%

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 small growth in Earnings Per Share. In the last year, the EPS has grown by 7.17%.

WFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.01% yearly.

Looking at the last year, WFC shows a decrease in Revenue. The Revenue has decreased by -0.36% in the last year.

Measured over the past years, WFC shows a decrease in Revenue. The Revenue has been decreasing by -1.07% on average per year.

EPS 1Y (TTM)7.17%

EPS 3Y4.11%

EPS 5Y5.01%

EPS Q2Q%10.08%

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 -1.14% on average per year.

Based on estimates for the next years, WFC will show a small growth in Revenue. The Revenue will grow by 3.90% on average per year.

EPS Next Y1.28%

EPS Next 2Y8.36%

EPS Next 3Y6.56%

EPS Next 5Y-1.14%

Revenue Next Year2.13%

Revenue Next 2Y3.35%

Revenue Next 3Y3.9%

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

Based on the Price/Earnings ratio of 14.08, the valuation of WFC can be described as correct.

WFC's Price/Earnings is on the same level as the industry average.

WFC is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.

A Price/Forward Earnings ratio of 13.90 indicates a correct valuation of WFC.

Based on the Price/Forward Earnings ratio, WFC is valued a bit more expensive than the industry average as 63.57% of the companies are valued more cheaply.

When comparing the Price/Forward Earnings ratio of WFC to the average of the S&P500 Index (24.44), we can say WFC is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	14.08
Fwd PE	13.9

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, WFC is valued a bit more expensive than 68.84% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	21.12
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)11.03

PEG (5Y)2.81

EPS Next 2Y8.36%

EPS Next 3Y6.56%

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5. Dividend

5.1 Amount

WFC has a Yearly Dividend Yield of 2.08%.

Compared to an average industry Dividend Yield of 3.22, WFC is paying slightly less dividend.

Compared to an average S&P500 Dividend Yield of 2.28, WFC has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.08%

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.

WFC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.

DP36.6%

EPS Next 2Y8.36%

EPS Next 3Y6.56%

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WELLS FARGO & CO

NYSE:WFC (1/21/2025, 8:04:00 PM)

After market: 77.89 +0.04 (+0.05%)

77.85

+0.77 (+1%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

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

Earnings (Next)N/A N/A

Inst Owners77.93%

Inst Owner Change0.07%

Ins Owners0.08%

Ins Owner Change-0.48%

Market Cap260.45B

Analysts75.33

Price Target76.04 (-2.32%)

Short Float %0.9%

Short Ratio1.83

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.08%

Yearly Dividend1.57

Dividend Growth(5Y)-4.35%

DP36.6%

Div Incr Years3

Div Non Decr Years3

Ex-DateN/A

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)6.85%

PT rev (3m)17.23%

EPS NQ rev (1m)0%

EPS NQ rev (3m)3.48%

EPS NY rev (1m)0%

EPS NY rev (3m)0.73%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)1.58%

Revenue NY rev (1m)0.41%

Revenue NY rev (3m)0.84%

Valuation

		Industry Rank	Sector Rank
PE	14.08
Fwd PE	13.9
P/S	3.16
P/FCF	21.12
P/OCF	21.12
P/B	1.42
P/tB	1.73
EV/EBITDA	N/A

EPS(TTM)5.53

EY7.1%

EPS(NY)5.6

Fwd EY7.19%

FCF(TTM)3.69

FCFY4.74%

OCF(TTM)3.69

OCFY4.74%

SpS24.63

BVpS54.78

TBVpS44.99

PEG (NY)11.03

PEG (5Y)2.81

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

WACC10.49%

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)7.17%

EPS 3Y4.11%

EPS 5Y5.01%

EPS Q2Q%10.08%

EPS Next Y1.28%

EPS Next 2Y8.36%

EPS Next 3Y6.56%

EPS Next 5Y-1.14%

Revenue 1Y (TTM)-0.36%

Revenue growth 3Y1.3%

Revenue growth 5Y-1.07%

Sales Q2Q%-0.49%

Revenue Next Year2.13%

Revenue Next 2Y3.35%

Revenue Next 3Y3.9%

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