NYSE:WFC.PRV

Stock Analysis Report

Executive Summary

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions.

Rewards

Trading at 7.7% below its fair value

Pays a high and reliable dividend of 4.31%

Risk Analysis

No risks detected for WFC.PRV from our risk checks.


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Wells Fargo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WFC.PRV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

WFC.PRV

-0.3%

US Banks

0.06%

US Market


1 Year Return

0.1%

WFC.PRV

11.1%

US Banks

19.3%

US Market

Return vs Industry: WFC.PRV underperformed the US Banks industry which returned 11.1% over the past year.

Return vs Market: WFC.PRV underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

WFC.PRVIndustryMarket
7 Day0%-0.3%0.06%
30 Day0.2%-0.5%1.7%
90 Day-0.04%0.6%9.0%
1 Year6.1%0.1%14.4%11.1%21.8%19.3%
3 Year17.7%0.4%24.7%15.7%49.5%39.9%
5 Yearn/a74.9%55.1%73.1%54.1%

Price Volatility Vs. Market

How volatile is Wells Fargo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wells Fargo undervalued compared to its fair value and its price relative to the market?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WFC.PRV ($26.1) is trading below our estimate of fair value ($28.29)

Significantly Below Fair Value: WFC.PRV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WFC.PRV is good value based on its PE Ratio (11.6x) compared to the Banks industry average (12.6x).

PE vs Market: WFC.PRV is good value based on its PE Ratio (11.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: WFC.PRV is poor value based on its PEG Ratio (143.8x)


Price to Book Ratio

PB vs Industry: WFC.PRV is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Wells Fargo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

0.08%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WFC.PRV's forecast earnings growth (0.08% per year) is below the savings rate (1.7%).

Earnings vs Market: WFC.PRV's earnings (0.08% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: WFC.PRV's earnings are forecast to grow, but not significantly.

Revenue vs Market: WFC.PRV's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: WFC.PRV's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WFC.PRV's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Wells Fargo performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFC.PRV has high quality earnings.

Growing Profit Margin: WFC.PRV's current net profit margins (21.8%) are lower than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: WFC.PRV's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: WFC.PRV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WFC.PRV had negative earnings growth (-13.3%) over the past year, making it difficult to compare to the Banks industry average (12.2%).


Return on Equity

High ROE: WFC.PRV's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wells Fargo's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: WFC.PRV has a low level of unsold assets or inventory.

Debt Coverage by Assets: WFC.PRV's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: WFC.PRV's level of assets compared to its equity is moderate.

Allowance for Bad Loans: WFC.PRV has a sufficient allowance for bad loans.

Low Risk Liabilities: WFC.PRV's liabilities are made up of primarily low risk sources of funding.

Loan Level: WFC.PRV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WFC.PRV's loans are broadly funded by customer deposits.

Level of Bad Loans: WFC.PRV has an appropriate level of bad loans (0.56%)


Next Steps

Dividend

What is Wells Fargo's current dividend yield, its reliability and sustainability?

4.31%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: WFC.PRV's dividend (4.31%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: WFC.PRV's dividend (4.31%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: WFC.PRV's dividends per share have been stable in the past 10 years.

Growing Dividend: WFC.PRV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47%), WFC.PRV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WFC.PRV's dividends in 3 years are forecast to be well covered by earnings (43.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Charlie Scharf (54yo)

0.3yrs

Tenure

0

Mr. Charles W. Scharf, also known as Charlie, has been the Chief Executive Officer, President and Director of Wells Fargo & Company since October 21, 2019. Mr. Scharf has been a Director of Visa Internatio ...


Leadership Team

NamePositionTenureCompensationOwnership
John Shrewsberry
Senior EVP & CFO5.8yrsUS$12.53m0.012% $22.8m
Avid Modjtabai
Head of Payments12.8yrsUS$10.39m0.012% $24.3m
Petros Pelos
Chief Executive Officer of Commercial Banking11yrsUS$8.99m0.0023% $4.6m
Mary Mack
Chief Executive Officer of Consumer & Small Business Banking3yrsUS$8.60m0.0021% $4.1m
Charles Scharf
President0.3yrsno data0.00010% $195.7k
Scott Powell
Senior EVP & COO0.2yrsno datano data
Richard Levy
Executive VP & Principal Accounting Officer0yrsno data0.0032% $6.3m
Deborah Chrapaty
Chief Technology Officer0.7yrsno datano data
Hope Hardison
Chief Administrative Officer4.5yrsno data0.0026% $5.1m
John Campbell
Head of Investor Relations0yrsno datano data

3.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: WFC.PRV's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Scharf
President0.3yrsno data0.00010% $195.7k
Henry Jordan
Chairman & CEO of Wells Fargo Capital Finance0yrsno datano data
Theodore Craver
Independent Director2.1yrsUS$403.60k0.00028% $548.0k
Donald James
Independent Director11.1yrsUS$358.00k0.00042% $822.0k
Elizabeth Duke
Independent Chairman of the Board2.1yrsUS$631.00k0.00014% $274.0k
Bettina von Hagen
Member of Environmental Advisory Board13.9yrsno datano data
Charles Kennel
Member of Environmental Advisory Board13.9yrsno datano data
Randall LaBauve
Member of Environmental Advisory Board13.9yrsno datano data
Maria Morris
Independent Director2.1yrsUS$412.61kno data
James Quigley
Independent Director6.3yrsUS$417.00k0.000060% $117.4k

6.3yrs

Average Tenure

66yo

Average Age

Experienced Board: WFC.PRV's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wells Fargo & Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wells Fargo & Company
  • Ticker: WFC.PRV
  • Exchange: NYSE
  • Founded: 1852
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$195.724b
  • Shares outstanding: 4.13b
  • Website: https://www.wellsfargo.com

Number of Employees


Location

  • Wells Fargo & Company
  • 420 Montgomery Street
  • San Francisco
  • California
  • 94163
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WFCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
NWTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
WFC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
NWTXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
WFCSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
WFCSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0R2FLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
WFCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
WFCETLX (Eurotlx)YesCommon StockITEURJan 1968
WFCBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REP 1 COM USD1.666666ARARSJul 2001
WFC.PRLNYSE (New York Stock Exchange)PERP PFD CNV AUSUSDApr 2008
NWT2DB (Deutsche Boerse AG)7.98%-FR PERP PRF CL 'A' SRS K USD1000DEUSDJan 2009
WFCO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHBRBRLJan 2012
WFC.PRNNYSE (New York Stock Exchange)DEP SHS REPSTG 1USUSDAug 2012
WFC.PRONYSE (New York Stock Exchange)DEP1/1000PF CL AUSUSDNov 2012
WFC.PRPNYSE (New York Stock Exchange)DEP1/1000PF CL AUSUSDMar 2013
WFC.PRQNYSE (New York Stock Exchange)DEP SHS 1/1000 AUSUSDJul 2013
WFC.PRRNYSE (New York Stock Exchange)DEP 1/1000 PFD AUSUSDDec 2013
WFC.PRTNYSE (New York Stock Exchange)DEP SHS 1/1000 TUSUSDJul 2014
WFC.PRVNYSE (New York Stock Exchange)DEP PFD V 1/1000USUSDSep 2015
WFC.PRWNYSE (New York Stock Exchange)PFD SER W CL AUSUSDJan 2016
WFC.PRXNYSE (New York Stock Exchange)PFD SER X CL AUSUSDJun 2016
WFC.PRYNYSE (New York Stock Exchange)5.625 DP SH PF YUSUSDApr 2017
WFC.PRZNYSE (New York Stock Exchange)DP PFD A SR ZUSUSDJan 2020

Biography

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. It operates through three segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The company also engages in the wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, computer and data processing, trust, investment advisory, mortgage-backed securities, and venture capital investment services. As of February 7, 2019, it operated through 7,800 locations, 13,000 ATMs, and the Internet and mobile banking, as well as has offices in 37 countries and territories. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 02:01
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.