WELLS FARGO & CO (WFC)
US9497461015 - Common Stock
Overall WFC gets a fundamental rating of 3 out of 10. We evaluated WFC against 406 industry peers in the Banks industry. Both the profitability and financial health of WFC have multiple concerns. WFC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WFC was profitable.
WFC had a positive operating cash flow in the past year.
WFC had positive earnings in each of the past 5 years.
Of the past 5 years WFC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.88%, WFC is in the better half of the industry, outperforming 61.39% 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 62.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 9.26% | ||
| 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
With a Profit Margin value of 20.59%, WFC perfoms like the industry average, outperforming 40.84% of the companies in the same industry.
In the last couple of years the Profit Margin of WFC has declined.
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 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.
Compared to 5 years ago, WFC has less shares outstanding
WFC has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WFC is 23.26, which is on the high side as it means it would take WFC, 23.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.26, WFC is doing worse than 77.72% of the companies in the same industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that WFC has dependencies on debt financing.
The Debt to Equity ratio of WFC (1.57) is worse than 89.60% of its industry peers.
| 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 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.54% over the past year.
The Earnings Per Share has been growing slightly by 3.00% on average over the past years.
The Revenue has been growing slightly by 0.30% in the past year.
The Revenue has been decreasing by -0.90% on average over the past years.
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 small growth in Earnings Per Share. The EPS will grow by 2.71% 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 Y3.55%
EPS Next 2Y4.18%
EPS Next 3Y7.96%
EPS Next 5Y2.71%
Revenue Next Year0.08%
Revenue Next 2Y0.41%
Revenue Next 3Y1.67%
Revenue Next 5Y2.01%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 13.03 indicates a correct valuation of WFC.
WFC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WFC to the average of the S&P500 Index (27.73), we can say WFC is valued rather cheaply.
The Price/Forward Earnings ratio is 12.56, which indicates a correct valuation of WFC.
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 (22.83), we can say WFC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WFC is valued a bit more expensive than the industry average as 65.35% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.08 | ||
| 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)3.67
PEG (5Y)4.33
EPS Next 2Y4.18%
EPS Next 3Y7.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, WFC has a reasonable but not impressive dividend return.
WFC's Dividend Yield is slightly below the industry average, which is at 3.15.
WFC's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of WFC decreases each year by -4.35%.
WFC has paid a dividend for at least 10 years, which is 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.
DP36.6%
EPS Next 2Y4.18%
EPS Next 3Y7.96%
WELLS FARGO & CO
NYSE:WFC (12/20/2024, 8:04:00 PM)
After market: 70.45 +0.11 (+0.16%)70.34
+1.49 (+2.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners77.93%
Inst Owner Change-0.86%
Ins Owners0.08%
Ins Owner Change-0.48%
Market Cap235.32B
Analysts75.33
Price Target71.17 (1.18%)
Short Float %1.19%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Dividend Growth(5Y)-4.35%
DP36.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)5.28%
PT rev (3m)8.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.48%
EPS NY rev (1m)0.34%
EPS NY rev (3m)4.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 12.56 | ||
| P/S | 2.86 | ||
| P/FCF | 19.08 | ||
| P/OCF | 19.08 | ||
| P/B | 1.28 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.4
EY7.68%
EPS(NY)5.6
Fwd EY7.96%
FCF(TTM)3.69
FCFY5.24%
OCF(TTM)3.69
OCFY5.24%
SpS24.63
BVpS54.78
TBVpS44.99
PEG (NY)3.67
PEG (5Y)4.33
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)0.89%
ROA(5y)0.74%
ROE(3y)9.25%
ROE(5y)7.68%
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 3Y108.41%
PM growth 5Y-1.88%
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)20.54%
EPS 3Y132.61%
EPS 5Y3%
EPS Q2Q%9.35%
EPS Next Y3.55%
EPS Next 2Y4.18%
EPS Next 3Y7.96%
EPS Next 5Y2.71%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y3.61%
Revenue growth 5Y-0.9%
Sales Q2Q%-1.93%
Revenue Next Year0.08%
Revenue Next 2Y0.41%
Revenue Next 3Y1.67%
Revenue Next 5Y2.01%
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-49.91%
FCF growth 3Y169.97%
FCF growth 5Y2.27%
OCF growth 1Y-49.91%
OCF growth 3Y169.97%
OCF growth 5Y2.27%