NYSE:WFC.PRX

Stock Analysis Report

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Executive Summary

Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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.PRX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

WFC.PRX

3.9%

US Banks

2.5%

US Market


1 Year Return

0.2%

WFC.PRX

-20.0%

US Banks

16.3%

US Market

Return vs Industry: WFC.PRX exceeded the US Banks industry which returned -20% over the past year.

Return vs Market: WFC.PRX underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

WFC.PRXIndustryMarket
7 Day1.1%3.9%2.5%
30 Day2.7%9.5%5.6%
90 Day1.7%7.2%16.4%
1 Year5.7%0.2%-17.2%-20.0%18.8%16.3%
3 Year18.9%1.0%-9.1%-16.4%45.1%35.7%
5 Yearn/a13.9%0.02%75.8%56.8%

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

No news available

Valuation

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

26.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WFC.PRX ($25.77) is trading above our estimate of fair value ($9.24)

Significantly Below Fair Value: WFC.PRX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WFC.PRX is poor value based on its PE Ratio (26.7x) compared to the US Banks industry average (9.9x).

PE vs Market: WFC.PRX is poor value based on its PE Ratio (26.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WFC.PRX is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: WFC.PRX is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Wells Fargo forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

94.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WFC.PRX's forecast earnings growth (94.8% per year) is above the savings rate (2.2%).

Earnings vs Market: WFC.PRX's earnings (94.8% per year) are forecast to grow faster than the US market (23.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WFC.PRX's revenue (2.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: WFC.PRX's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WFC.PRX's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Wells Fargo performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFC.PRX has high quality earnings.

Growing Profit Margin: WFC.PRX's current net profit margins (6.3%) are lower than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: WFC.PRX's earnings have declined by 7.3% per year over the past 5 years.

Accelerating Growth: WFC.PRX'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.PRX had negative earnings growth (-82.5%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: WFC.PRX's Return on Equity (3.3%) is considered low.


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


Financial Institutions Analysis

Asset Level: WFC.PRX's Assets to Equity ratio (10.9x) is moderate.

Allowance for Bad Loans: WFC.PRX has a sufficient allowance for bad loans (249%).

Low Risk Liabilities: 79% of WFC.PRX's liabilities are made up of primarily low risk sources of funding.

Loan Level: WFC.PRX has an appropriate level of Loans to Assets ratio (47%).

Low Risk Deposits: WFC.PRX's Loans to Deposits ratio (65%) is appropriate.

Level of Bad Loans: WFC.PRX has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WFC.PRX's dividend (1.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: WFC.PRX's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (4.36%).


Stability and Growth of Payments

Stable Dividend: WFC.PRX's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (217.5%), WFC.PRX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WFC.PRX's dividends in 3 years are forecast to be well covered by earnings (25.1% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Charlie Scharf (55 yo)

0.83

Tenure

US$36,362,588

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD36.36M) is above average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Insufficient data to compare Charlie's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Scharf
President0.83yrUS$36.36m0.0043%
$ 4.4m
John Shrewsberry
Senior EVP & CFO6.25yrsUS$12.44m0.015%
$ 15.0m
Petros Pelos
Senior EVP & CEO of Commercial Banking11.5yrsUS$10.45m0.0041%
$ 4.2m
Mary Mack
Senior EVP and CEO of Consumer & Small Business Banking3.5yrsUS$10.53m0.0034%
$ 3.5m
Saul Van Beurden
Senior EVP & Head of Technology1.33yrsUS$10.37m0.00041%
$ 423.5k
Scott Powell
Senior EVP & COO0.67yrno datano data
Muneera Carr
Chief Accounting Officer & Executive VP0.42yrno data0.000010%
$ 10.3k
Deborah Chrapaty
Chief Technology Officer1.17yrsno datano data
Hope Hardison
Chief Administrative Officer5yrsno datano data
John Campbell
Head of Investor Relationsno datano datano data
Michael Roemer
Chief Compliance Officer2.58yrsno datano data
Ellen Patterson
Senior Executive VP & General Counsel0.42yrno datano data

1.3yrs

Average Tenure

56yo

Average Age

Experienced Management: WFC.PRX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Scharf
President0.83yrUS$36.36m0.0043%
$ 4.4m
Henry Jordan
Chairman & CEO of Wells Fargo Capital Financeno datano datano data
Charles Noski
Independent Chairman0.42yrUS$232.79k0.00049%
$ 506.1k
Theodore Craver
Independent Director2.58yrsUS$360.03k0.00043%
$ 444.1k
Donald James
Independent Director11.58yrsUS$376.03k0.00060%
$ 619.7k
Bettina von Hagen
Member of Environmental Advisory Board14.42yrsno datano data
Charles Kennel
Member of Environmental Advisory Board14.42yrsno datano data
Randall LaBauve
Member of Environmental Advisory Board14.42yrsno datano data
David Hudnall
Member of Environmental Advisory Board14.42yrsno datano data
Forescee Hogan-Rowles
Member of Environmental Advisory Board14.42yrsno datano data
Jean Pogge
Member of Environmental Advisory Board14.42yrsno datano data
Maria Morris
Independent Director2.58yrsUS$453.36kno data

14.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WFC.PRX's board of directors are seasoned and experienced ( 14.4 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.PRX
  • Exchange: NYSE
  • Founded: 1852
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$103.290b
  • Shares outstanding: 4.12b
  • Website: https://www.wellsfargo.com

Number of Employees


Location

  • Wells Fargo & Company
  • 420 Montgomery Street
  • San Francisco
  • California
  • 94104
  • 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
NWTETLX (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
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 banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:43
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.