Wells Fargo
Market Cap
US$186.6b
Last Updated
2021/06/15 06:14 UTC
Data Sources
Company Financials +
Executive Summary
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet second-rate 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WFC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-3.1%
WFC
-4.6%
US Banks
0.8%
US Market
1 Year Return
58.3%
WFC
58.9%
US Banks
43.1%
US Market
Return vs Industry: WFC matched the US Banks industry which returned 58.9% over the past year.
Return vs Market: WFC exceeded the US Market which returned 43.1% over the past year.
Shareholder returns
| WFC | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | -4.6% | 0.8% |
| 30 Day | -3.9% | -4.1% | 3.0% |
| 90 Day | 13.3% | 3.6% | 4.8% |
| 1 Year | 60.5%58.3% | 63.6%58.9% | 45.5%43.1% |
| 3 Year | -9.5%-18.0% | 28.0%17.0% | 60.2%50.3% |
| 5 Year | 11.9%-4.4% | 112.0%85.2% | 126.4%101.0% |
Long-Term 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
1 month ago | Simply Wall St
Don't Race Out To Buy Wells Fargo & Company (NYSE:WFC) Just Because It's Going Ex-Dividend2 months ago | Simply Wall St
Does It Make Sense To Buy Wells Fargo & Company (NYSE:WFC) For Its Yield?3 months ago | Simply Wall St
How Much Did Wells Fargo's(NYSE:WFC) Shareholders Earn From Share Price Movements Over The Last Three Years?Valuation
Is Wells Fargo undervalued compared to its fair value and its price relative to the market?
4.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WFC ($45.15) is trading below our estimate of fair value ($47.16)
Significantly Below Fair Value: WFC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WFC is poor value based on its PE Ratio (30.9x) compared to the US Banks industry average (11.9x).
PE vs Market: WFC is poor value based on its PE Ratio (30.9x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: WFC is poor value based on its PEG Ratio (19.7x)
Price to Book Ratio
PB vs Industry: WFC's PB Ratio (1.1x) is in line with the US Banks industry average.
Future Growth
How is Wells Fargo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
1.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WFC's forecast earnings growth (1.6% per year) is below the savings rate (2%).
Earnings vs Market: WFC's earnings (1.6% per year) are forecast to grow slower than the US market (15.5% per year).
High Growth Earnings: WFC's earnings are forecast to grow, but not significantly.
Revenue vs Market: WFC's revenue (2.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: WFC's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WFC's Return on Equity is forecast to be low in 3 years time (8.9%).
Past Performance
How has Wells Fargo performed over the past 5 years?
-19.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WFC has a large one-off loss of $1.7B impacting its March 31 2021 financial results.
Growing Profit Margin: WFC's current net profit margins (9.5%) are lower than last year (16.5%).
Past Earnings Growth Analysis
Earnings Trend: WFC's earnings have declined by 19.7% per year over the past 5 years.
Accelerating Growth: WFC'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 had negative earnings growth (-51.6%) over the past year, making it difficult to compare to the Banks industry average (20.7%).
Return on Equity
High ROE: WFC's Return on Equity (4.2%) is considered low.
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's Assets to Equity ratio (10.4x) is moderate.
Allowance for Bad Loans: WFC has a sufficient allowance for bad loans (210%).
Low Risk Liabilities: 81% of WFC's liabilities are made up of primarily low risk sources of funding.
Loan Level: WFC has an appropriate level of Loans to Assets ratio (43%).
Low Risk Deposits: WFC's Loans to Deposits ratio (59%) is appropriate.
Level of Bad Loans: WFC has an appropriate level of bad loans (0.9%).
Dividend
What is Wells Fargo current dividend yield, its reliability and sustainability?
0.89%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WFC's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: WFC's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.36%).
Stability and Growth of Payments
Stable Dividend: WFC's dividend payments have been volatile in the past 10 years.
Growing Dividend: WFC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.4%), WFC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WFC's dividends in 3 years are forecast to be well covered by earnings (29.6% 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)
1.67yrs
Tenure
US$20,392,046
Compensation
Mr. Charles W. Scharf, also known as Charlie, has been the Chief Executive Officer, President and Director of Wells Fargo & Company since October 21, 2019. Mr. Scharf serves as Director of Visa Internation...
CEO Compensation Analysis
Compensation vs Market: Charlie's total compensation ($USD20.39M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Charlie's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: WFC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: WFC's board of directors are seasoned and experienced ( 15.3 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.
Recent Insider Transactions
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
- Exchange: NYSE
- Founded: 1852
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: US$186.631b
- Shares outstanding: 4.13b
- Website: https://www.wellsfargo.com
Number of Employees
Location
- Wells Fargo & Company
- 420 Montgomery Street
- San Francisco
- California
- 94104
- United States
Listings
Biography
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle mark...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/15 06:14 |
| End of Day Share Price | 2021/06/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.