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WELLS FARGO & CO (WFC) Stock Fundamental Analysis

NYSE:WFC - New York Stock Exchange, Inc. - US9497461015 - Common Stock - Currency: USD

64.71  +0.73 (+1.14%)

After market: 65.05 +0.34 (+0.53%)

Fundamental Rating

3

Taking everything into account, WFC scores 3 out of 10 in our fundamental rating. WFC was compared to 398 industry peers in the Banks industry. There are concerns on the financial health of WFC while its profitability can be described as average. WFC does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

4

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.
Each year in the past 5 years WFC has been profitable.
WFC had a positive operating cash flow in 4 of the past 5 years.
WFC Yearly Net Income VS EBIT VS OCF VS FCFWFC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B 30B 40B

1.2 Ratios

The Return On Assets of WFC (0.96%) is better than 63.57% of its industry peers.
With a decent Return On Equity value of 10.39%, WFC is doing good in the industry, outperforming 72.11% of the companies in the same industry.
Industry RankSector Rank
ROA 0.96%
ROE 10.39%
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
WFC Yearly ROA, ROE, ROICWFC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

WFC has a Profit Margin (22.61%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of WFC has grown nicely.
WFC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 22.61%
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
WFC Yearly Profit, Operating, Gross MarginsWFC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1

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.
WFC Yearly Shares OutstandingWFC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B
WFC Yearly Total Debt VS Total AssetsWFC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T 1.5T

2.2 Solvency

The Debt to FCF ratio of WFC is 91.56, which is on the high side as it means it would take WFC, 91.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WFC (91.56) is worse than 85.43% of its industry peers.
WFC has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.55, WFC is doing worse than 88.19% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 91.56
Altman-Z N/A
ROIC/WACCN/A
WACC12.56%
WFC Yearly LT Debt VS Equity VS FCFWFC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B 200B 250B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
WFC Yearly Current Assets VS Current LiabilitesWFC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

3

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.83% over the past year.
The Earnings Per Share has been growing slightly by 5.61% on average over the past years.
The Revenue has decreased by -1.39% in the past year.
WFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.07% yearly.
EPS 1Y (TTM)9.83%
EPS 3Y5.11%
EPS 5Y5.61%
EPS Q2Q%0.79%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%-3.42%

3.2 Future

The Earnings Per Share is expected to grow by 6.03% on average over the next years.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y4.13%
EPS Next 2Y10.32%
EPS Next 3Y11.9%
EPS Next 5Y6.03%
Revenue Next Year2.27%
Revenue Next 2Y3.31%
Revenue Next 3Y3.58%
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 stable.
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.
WFC Yearly Revenue VS EstimatesWFC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20B 40B 60B 80B
WFC Yearly EPS VS EstimatesWFC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.35, which indicates a very decent 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.
WFC is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
WFC is valuated reasonably with a Price/Forward Earnings ratio of 9.34.
The rest of the industry has a similar Price/Forward Earnings ratio as WFC.
When comparing the Price/Forward Earnings ratio of WFC to the average of the S&P500 Index (21.08), we can say WFC is valued rather cheaply.
Industry RankSector Rank
PE 11.35
Fwd PE 9.34
WFC Price Earnings VS Forward Price EarningsWFC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, WFC is valued expensively inside the industry as 82.91% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF 69.62
EV/EBITDA N/A
WFC Per share dataWFC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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)2.75
PEG (5Y)2.02
EPS Next 2Y10.32%
EPS Next 3Y11.9%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.47%, WFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.78, WFC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.57, WFC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.47%

5.2 History

The dividend of WFC decreases each year by -3.84%.
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)-3.84%
Div Incr Years3
Div Non Decr Years3
WFC Yearly Dividends per shareWFC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

WFC pays out 33.49% of its income as dividend. This is a sustainable payout ratio.
DP33.49%
EPS Next 2Y10.32%
EPS Next 3Y11.9%
WFC Yearly Income VS Free CF VS DividendWFC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B 30B 40B
WFC Dividend Payout.WFC Dividend Payout, showing the Payout Ratio.WFC Dividend Payout.PayoutRetained Earnings

WELLS FARGO & CO

NYSE:WFC (4/17/2025, 8:04:00 PM)

After market: 65.05 +0.34 (+0.53%)

64.71

+0.73 (+1.14%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-11 2025-04-11/bmo
Earnings (Next)07-15 2025-07-15/bmo
Inst Owners78.16%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change9.68%
Market Cap211.06B
Analysts77.78
Price Target83.49 (29.02%)
Short Float %0.93%
Short Ratio1.86
Dividend
Industry RankSector Rank
Dividend Yield 2.47%
Yearly Dividend1.81
Dividend Growth(5Y)-3.84%
DP33.49%
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)16.58%
Min EPS beat(2)15.95%
Max EPS beat(2)17.22%
EPS beat(4)4
Avg EPS beat(4)11.76%
Min EPS beat(4)1.93%
Max EPS beat(4)17.22%
EPS beat(8)8
Avg EPS beat(8)10.2%
EPS beat(12)11
Avg EPS beat(12)8.37%
EPS beat(16)15
Avg EPS beat(16)13.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2%
Max Revenue beat(2)-1.23%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-2%
Max Revenue beat(4)2.24%
Revenue beat(8)5
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.22%
Revenue beat(16)10
Avg Revenue beat(16)2.17%
PT rev (1m)-1.72%
PT rev (3m)9.79%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)5.98%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)1.23%
Valuation
Industry RankSector Rank
PE 11.35
Fwd PE 9.34
P/S 2.57
P/FCF 69.62
P/OCF 69.62
P/B 1.18
P/tB 1.45
EV/EBITDA N/A
EPS(TTM)5.7
EY8.81%
EPS(NY)6.93
Fwd EY10.7%
FCF(TTM)0.93
FCFY1.44%
OCF(TTM)0.93
OCFY1.44%
SpS25.2
BVpS54.86
TBVpS44.75
PEG (NY)2.75
PEG (5Y)2.02
Profitability
Industry RankSector Rank
ROA 0.96%
ROE 10.39%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 22.61%
GM N/A
FCFM 3.69%
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-Score5
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 91.56
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 16.31%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC12.56%
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)152.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.83%
EPS 3Y5.11%
EPS 5Y5.61%
EPS Q2Q%0.79%
EPS Next Y4.13%
EPS Next 2Y10.32%
EPS Next 3Y11.9%
EPS Next 5Y6.03%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y1.3%
Revenue growth 5Y-1.07%
Sales Q2Q%-3.42%
Revenue Next Year2.27%
Revenue Next 2Y3.31%
Revenue Next 3Y3.58%
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-92.48%
FCF growth 3YN/A
FCF growth 5Y-14.72%
OCF growth 1Y-92.48%
OCF growth 3YN/A
OCF growth 5Y-14.72%