Wells Fargo
Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. The last earnings update was 25 days ago. More info.
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WFC Share Price and Events
7 Day Returns
1 Year Returns
WFC Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Wells Fargo (WFC) | -4.6% | -1.4% | 10.8% | -5.2% | -1.2% | -2% |
| US Banks | -7.4% | -7.7% | 9.7% | -9.6% | 40.7% | 32.9% |
| US Market | -1.1% | 0.3% | 17.2% | 6.4% | 37.9% | 42.1% |
1 Year Return vs Industry and Market
- WFC outperformed the Banks industry which returned -9.6% over the past year.
- WFC underperformed the Market in United States of America which returned 6.4% over the past year.
WFC Value
Is Wells Fargo undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Wells Fargo
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Wells Fargo.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 22 analysts.
= Stable Book Value * Return on Equity = $41.13 * 13.4% |
$5.49 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 18 analysts. | $41.13 |
| Discount Rate (Cost of Equity) | See below | 10.2% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Banks Unlevered Beta | Simply Wall St/ S&P Global | 0.61 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.611 (1 + (1- 21%) (156.47%)) |
1.246 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.25 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.246 * 5.96%) |
10.16% |
Discounted Cash Flow Calculation for NYSE:WFC using Excess Returns Model Model
The calculations below outline how an intrinsic value for Wells Fargo is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (13.4% – 10.16%) * $41.13) |
$1.32 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $1.32 / (10.16% - 2.73%) |
$17.72 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $41.13 + $17.72 |
$58.85 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $58.85 |
| Current discount | Discount to share price of
$48.31
= -1 x ($48.31 - $58.85) / $58.85 |
17.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Wells Fargo's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Wells Fargo's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Wells Fargo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Wells Fargo's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $4.31 |
| NYSE:WFC Share Price ** | NYSE (2019-03-22) in USD | $48.31 |
| United States of America Banks Industry PE Ratio | Median Figure of 587 Publicly-Listed Banks Companies | 12.68x |
| United States of America Market PE Ratio | Median Figure of 3,062 Publicly-Listed Companies | 17.16x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Wells Fargo.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:WFC Share Price ÷ EPS (both in USD) = 48.31 ÷ 4.31 |
11.21x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Wells Fargo is good value based on earnings compared to the US Banks industry average.
- Wells Fargo is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Wells Fargo's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 11.21x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts |
5.6%per year |
| United States of America Banks Industry PEG Ratio | Median Figure of 260 Publicly-Listed Banks Companies | 1.13x |
| United States of America Market PEG Ratio | Median Figure of 2,105 Publicly-Listed Companies | 1.44x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 11.21x ÷ 5.6% |
2x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Wells Fargo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Wells Fargo's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $38.08 |
| NYSE:WFC Share Price * | NYSE (2019-03-22) in USD | $48.31 |
| United States of America Banks Industry PB Ratio | Median Figure of 592 Publicly-Listed Banks Companies | 1.2x |
| United States of America Market PB Ratio | Median Figure of 5,165 Publicly-Listed Companies | 1.85x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:WFC Share Price ÷ Book Value per Share (both in USD) = 48.31 ÷ 38.08 |
1.27x |
* Primary Listing of Wells Fargo.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Wells Fargo is overvalued based on assets compared to the US Banks industry average.
Value checks
We assess Wells Fargo's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) Wells Fargo has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
WFC Future Performance
How is Wells Fargo expected to perform in the next 1 to 3 years based on estimates from 22 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Wells Fargo's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Wells Fargo's earnings growth is positive but not above the United States of America market average.
- Wells Fargo's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:WFC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts | 5.6% |
| NYSE:WFC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts | 1.4% |
| United States of America Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 4.3% |
| United States of America Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 5.4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.2% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 88,509 | 23,560 | 2 | |
| 2020-12-31 | 86,890 | 23,673 | 14 | |
| 2019-12-31 | 85,555 | 22,276 | 14 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 84,696 | 36,073 | 20,689 |
| 2018-09-30 | 85,732 | 21,417 | 20,718 |
| 2018-06-30 | 85,503 | 24,291 | 19,396 |
| 2018-03-31 | 86,082 | 20,814 | 20,054 |
| 2017-12-31 | 85,989 | 18,619 | 20,554 |
| 2017-09-30 | 85,283 | 23,108 | 19,686 |
| 2017-06-30 | 85,674 | 11,179 | 20,798 |
| 2017-03-31 | 85,082 | 8,170 | 20,521 |
| 2016-12-31 | 84,541 | 1,008 | 20,373 |
| 2016-09-30 | 84,550 | -8,847 | 20,704 |
| 2016-06-30 | 84,199 | 12,487 | 20,904 |
| 2016-03-31 | 84,129 | 18,171 | 21,094 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
All data from Wells Fargo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 6.10 | 6.42 | 5.88 | 4.00 |
| 2020-12-31 | 5.66 | 6.39 | 4.79 | 25.00 |
| 2019-12-31 | 4.94 | 5.25 | 4.69 | 26.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 4.31 |
| 2018-09-30 | 4.26 |
| 2018-06-30 | 3.96 |
| 2018-03-31 | 4.06 |
| 2017-12-31 | 4.14 |
| 2017-09-30 | 3.94 |
| 2017-06-30 | 4.15 |
| 2017-03-31 | 4.07 |
| 2016-12-31 | 4.03 |
| 2016-09-30 | 4.08 |
| 2016-06-30 | 4.10 |
| 2016-03-31 | 4.12 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Wells Fargo's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Wells Fargo has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
WFC Past Performance
How has Wells Fargo performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Wells Fargo's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Wells Fargo's 1-year earnings growth exceeds its 5-year average (0.7% vs -1.7%)
- Wells Fargo's earnings growth has not exceeded the US Banks industry average in the past year (0.7% vs 43.4%).
Earnings and Revenue History
All data from Wells Fargo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 84,696.00 | 20,689.00 | 40,547.00 | |
| 2018-09-30 | 85,732.00 | 20,718.00 | 41,054.00 | |
| 2018-06-30 | 85,503.00 | 19,396.00 | 40,814.00 | |
| 2018-03-31 | 86,082.00 | 20,054.00 | 40,546.00 | |
| 2017-12-31 | 85,989.00 | 20,554.00 | 40,422.00 | |
| 2017-09-30 | 85,283.00 | 19,686.00 | 40,844.00 | |
| 2017-06-30 | 85,674.00 | 20,798.00 | 40,226.00 | |
| 2017-03-31 | 85,082.00 | 20,521.00 | 39,099.00 | |
| 2016-12-31 | 84,541.00 | 20,373.00 | 38,826.00 | |
| 2016-09-30 | 84,550.00 | 20,704.00 | 37,304.00 | |
| 2016-06-30 | 84,199.00 | 20,904.00 | 36,793.00 | |
| 2016-03-31 | 84,129.00 | 21,094.00 | 36,641.00 | |
| 2015-12-31 | 83,690.00 | 21,470.00 | 36,514.00 | |
| 2015-09-30 | 83,846.00 | 21,649.00 | 36,115.00 | |
| 2015-06-30 | 83,519.00 | 21,614.00 | 36,104.00 | |
| 2015-03-31 | 83,350.00 | 21,675.00 | 35,987.00 | |
| 2014-12-31 | 82,980.00 | 21,821.00 | 35,493.00 | |
| 2014-09-30 | 82,296.00 | 21,808.00 | 34,524.00 | |
| 2014-06-30 | 81,854.00 | 21,717.00 | 34,648.00 | |
| 2014-03-31 | 81,731.00 | 21,565.00 | 34,708.00 | |
| 2013-12-31 | 81,456.00 | 20,889.00 | 35,625.00 | |
| 2013-09-30 | 81,256.00 | 20,377.00 | 35,426.00 | |
| 2013-06-30 | 80,475.00 | 19,777.00 | 35,044.00 | |
| 2013-03-31 | 79,238.00 | 18,908.00 | 34,602.00 | |
| 2012-12-31 | 78,839.00 | 17,999.00 | 34,416.00 | |
| 2012-09-30 | 77,300.00 | 17,030.00 | 34,599.00 | |
| 2012-06-30 | 75,495.00 | 16,152.00 | 34,098.00 | |
| 2012-03-31 | 74,554.00 | 15,477.00 | 34,024.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Wells Fargo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Wells Fargo used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
- Unable to establish if Wells Fargo improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Past performance checks
We assess Wells Fargo's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Wells Fargo has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
WFC Health
This company is a bank or financial institution.Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Balance sheet
Assets
Liabilities and shares
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Wells Fargo Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 197,066.00 | 343,330.00 | 341,274.00 |
| 2018-09-30 | 199,679.00 | 335,360.00 | 346,131.00 |
| 2018-06-30 | 206,069.00 | 332,287.00 | 343,312.00 |
| 2018-03-31 | 205,910.00 | 332,392.00 | 372,605.00 |
| 2017-12-31 | 208,079.00 | 337,072.00 | 383,522.00 |
| 2017-09-30 | 206,824.00 | 342,201.00 | 391,994.00 |
| 2017-06-30 | 206,145.00 | 345,861.00 | 380,515.00 |
| 2017-03-31 | 202,489.00 | 363,800.00 | 408,680.00 |
| 2016-12-31 | 200,497.00 | 366,350.00 | 357,810.00 |
| 2016-09-30 | 203,958.00 | 393,106.00 | 397,114.00 |
| 2016-06-30 | 202,661.00 | 379,668.00 | 398,766.00 |
| 2016-03-31 | 198,504.00 | 350,775.00 | 394,236.00 |
| 2015-12-31 | 193,891.00 | 310,984.00 | 357,219.00 |
| 2015-09-30 | 194,043.00 | 288,738.00 | 348,375.00 |
| 2015-06-30 | 190,676.00 | 277,410.00 | 332,472.00 |
| 2015-03-31 | 189,964.00 | 279,414.00 | 394,226.00 |
| 2014-12-31 | 185,262.00 | 266,199.00 | 346,719.00 |
| 2014-09-30 | 182,990.00 | 255,023.00 | 349,455.00 |
| 2014-06-30 | 181,549.00 | 237,961.00 | 328,821.00 |
| 2014-03-31 | 176,469.00 | 220,103.00 | 304,343.00 |
| 2013-12-31 | 171,008.00 | 206,881.00 | 296,525.00 |
| 2013-09-30 | 168,813.00 | 213,712.00 | 259,688.00 |
| 2013-06-30 | 163,777.00 | 192,300.00 | 224,299.00 |
| 2013-03-31 | 163,395.00 | 194,551.00 | 232,079.00 |
| 2012-12-31 | 158,911.00 | 196,496.00 | 206,534.00 |
| 2012-09-30 | 156,059.00 | 182,758.00 | 176,431.00 |
| 2012-06-30 | 149,437.00 | 181,007.00 | 154,634.00 |
| 2012-03-31 | 146,849.00 | 180,716.00 | 165,232.00 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- Wells Fargo has an acceptable proportion of non-loan assets held.
- Wells Fargo's liabilities are made up of primarily low risk sources of funding.
- Loans at Wells Fargo are broadly funded by customer deposits.
- Wells Fargo's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
- Wells Fargo has a sufficient allowance for bad loans.
- Wells Fargo has an acceptable level of bad loans (less than 2%).
Financial health checks
We assess Wells Fargo's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Wells Fargo has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
WFC Dividends
What is Wells Fargo's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Wells Fargo
shares you are expected to receive
$75
in your first year as a dividend.
Dividend Amount
- Wells Fargo's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
- Wells Fargo's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| United States of America Banks Industry Average Dividend Yield | Market Cap Weighted Average of 469 Stocks | 3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 2.21 | 6.00 |
| 2020-12-31 | 2.01 | 25.00 |
| 2019-12-31 | 1.83 | 26.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-22 | 1.800 | 3.630 |
| 2018-10-23 | 1.720 | 3.447 |
| 2018-07-24 | 1.720 | 3.070 |
| 2018-07-13 | 1.720 | 3.028 |
| 2018-04-24 | 1.560 | 2.868 |
| 2018-01-23 | 1.560 | 2.770 |
| 2017-10-24 | 1.560 | 2.676 |
| 2017-07-27 | 1.560 | 2.942 |
| 2017-04-25 | 1.520 | 2.819 |
| 2017-01-24 | 1.520 | 2.697 |
| 2016-10-25 | 1.520 | 2.896 |
| 2016-07-26 | 1.520 | 3.232 |
| 2016-04-26 | 1.520 | 3.134 |
| 2016-01-26 | 1.500 | 3.083 |
| 2015-10-27 | 1.500 | 2.803 |
| 2015-07-28 | 1.500 | 2.799 |
| 2015-04-28 | 1.500 | 2.653 |
| 2015-04-14 | 1.500 | 2.745 |
| 2015-01-27 | 1.400 | 2.569 |
| 2014-10-28 | 1.400 | 2.613 |
| 2014-07-22 | 1.400 | 2.741 |
| 2014-04-29 | 1.400 | 2.744 |
| 2014-04-11 | 1.400 | 2.859 |
| 2014-01-28 | 1.200 | 2.544 |
| 2013-10-22 | 1.200 | 2.712 |
| 2013-07-23 | 1.200 | 2.832 |
| 2013-03-15 | 1.200 | 3.049 |
| 2013-01-24 | 1.000 | 2.816 |
| 2012-10-23 | 0.980 | 2.906 |
| 2012-07-24 | 0.980 | 2.848 |
| 2012-04-24 | 0.980 | 3.009 |
| 2012-01-24 | 0.580 | 1.817 |
| 2011-10-25 | 0.480 | 1.805 |
| 2011-07-26 | 0.480 | 1.919 |
| 2011-04-20 | 0.480 | 1.723 |
| 2011-01-25 | 0.200 | 0.625 |
| 2010-10-26 | 0.200 | 0.684 |
| 2010-07-27 | 0.200 | 0.778 |
| 2010-04-27 | 0.200 | 0.700 |
| 2010-01-26 | 0.200 | 0.675 |
| 2009-10-27 | 0.200 | 0.729 |
| 2009-07-28 | 0.200 | 0.718 |
| 2009-04-28 | 0.200 | 0.827 |
| 2009-03-25 | 1.360 | 7.938 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Wells Fargo's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.6x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
Income/ dividend checks
We assess Wells Fargo's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Wells Fargo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Wells Fargo has a total score of 6/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
WFC Management
CEO
| COMPENSATION | $18,426,734 |
| AGE | 57 |
| TENURE AS CEO | 2.4 years |
CEO Bio
Mr. Timothy J. Sloan, also known as Tim, has been the Chief Executive Officer of Wells Fargo & Company since October 12, 2016 and as its President since November 17, 2015. He serves as President at WFC Holdings Corporation. Mr. Sloan served as the Chief Operating Officer at Wells Fargo & Company from November 17, 2015 to October 12, 2016. He served as the Head of Wholesale Banking and Senior Executive Vice President of Wholesale Banking at Wells Fargo & Company from May 15, 2014 to November 2015. He served as Head of Wholesale Banking and Senior Executive Vice President of Wholesale Banking at Wells Fargo Bank, National Association. Mr. Sloan was the Chief Financial Officer and Executive Vice President at Wells Fargo Bank, National Association from February 2011 to May 2014. He served as the of Senior Executive Vice President of Wells Fargo & Company from February 8, 2011 to May 15, 2014. Mr. Sloan served as the Chief Financial Officer and Senior Executive Vice President for Wachovia Preferred Funding Corp. since February 23, 2011. He was Executive Vice President (Commercial Banking, Real Estate and Specialized Financial Services) of Wells Fargo Bank, N.A. from 2006 to 2010 He served as the Chief Administrative Officer of Wells Fargo & Company from September 3, 2010 to February 8, 2011. He served as an Executive Vice President of Wachovia Preferred Funding Corp. since February 23, 2011. He served as the Head of Commercial Banking Real Estate & Specialized Financial Services at Wells Fargo & Company. He served as the Head of Specialized Financial Services for Wells Fargo & Company. He served as an Executive Vice President of Wholesale Banking with Wells Fargo Bank, National Association, from August 2003 to September 2010. Mr. Sloan joined Wells Fargo in 1987. Mr. Sloan has been a Director of Wells Fargo & Company since October 12, 2016. He served as an Independent Director of California Resources Corporation since December 1, 2014 until February 28, 2017. Mr. Sloan serves on the Board of Overseers of the Huntington Library and is a member of the University of Michigan's Ross School of Business Advisory Board. He is a trustee of Ohio Wesleyan University and the City of Hope. Mr. Sloan holds a B.A. in Economics and History and an M.B.A. in Finance and Accounting from the University of Michigan.
CEO Compensation
- Tim's compensation has been consistent with company performance over the past year.
- Tim's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Wells Fargo management team in years:
- The tenure for the Wells Fargo management team is about average.
Management Team
Tim Sloan
CEO, President & Director
$18M
57
2.4 yrs
John Shrewsberry
Senior EVP & CFO
$13M
52
4.8 yrs
Avid Modjtabai
Senior EVP of Payments
$10M
56
11.9 yrs
Perry Pelos
Senior Executive Vice President of Wholesale Banking
$9M
54
10.1 yrs
Mary Mack
Head of Consumer Banking
$9M
55
2.1 yrs
Titi Cole
Head of Operations & Executive VP
1.9 yrs
Rich Levy
Executive VP
60
Scott Dillon
Chief Technology Officer
3.1 yrs
Hope Hardison
Chief Administrative Officer
53
3.6 yrs
John Campbell
Head of Investor Relations
84
Board of Directors Tenure
Average tenure and age of the Wells Fargo board of directors in years:
- The average tenure for the Wells Fargo board of directors is less than 3 years, this suggests a new board.
Board of Directors
Betsy Duke
Chairman of the Board
$631K
65
1.2 yrs
Tim Sloan
CEO, President & Director
$18M
57
2.4 yrs
Henry Jordan
Chairman & CEO of Wells Fargo Capital Finance
62
Don James
Independent Director
$358K
69
10.2 yrs
John Baker
Independent Director
$350K
69
10.2 yrs
Jim Quigley
Independent Director
$417K
66
5.4 yrs
Zan Vautrinot
Independent Director
$348K
58
4.1 yrs
Ron Sargent
Independent Director
$359K
62
2.1 yrs
Ted Craver
Independent Director
$404K
66
1.2 yrs
Maria Morris
Independent Director
$413K
55
1.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 17. Aug 18 | Sell | Avid Modjtabai | Individual | 17. Aug 18 | 17. Aug 18 | -100,000 | $58.71 | $-5,871,000 | ||
| 14. Aug 18 | Sell | Hope Hardison | Individual | 13. Aug 18 | 13. Aug 18 | -25,000 | $58.01 | $-1,450,250 | ||
| 25. May 18 | Sell | Petros Pelos | Individual | 24. May 18 | 24. May 18 | -25,567 | $54.76 | $-1,400,049 | ||
Management checks
We assess Wells Fargo's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Wells Fargo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
WFC News
Simply Wall St News
Intrinsic Calculation For Wells Fargo & Company (NYSE:WFC) Shows Investors Are Overpaying
Valuing WFC, a bank stock, can be daunting since these financial companies have cash flows that are impacted by regulations that are not imposed upon other industries. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.
Simply Wall St - – Full articleWells Fargo & Company (NYSE:WFC) Delivered A Better ROE Than The Industry, Here’s Why
Wells Fargo & Company (NYSE:WFC) performed in-line with its diversified banks industry on the basis of its ROE – producing a return of10.71% relative to the peer average of 8.45% over the past 12 months. … If WFC borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface
Simply Wall St - – Full articleWhy These Fundamentals Make Wells Fargo & Company’s (NYSE:WFC) More Attractive
Wells Fargo & Company (NYSE:WFC) is a large-cap stock operating in the financial services sector with a market cap of US$260.36b. … As major financial institutions return to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks to vulnerabilities.
Simply Wall St - – Full articleShould You Be Tempted To Buy Wells Fargo & Company (NYSE:WFC) At Its Current PE Ratio?
This article is intended for those of you who are at the beginning of your investing journey. … and want to better understand how you can grow your money by investing in Wells Fargo & Company (NYSE:WFC). … Wells Fargo & Company (NYSE:WFC) is trading with a trailing P/E of 13.6x, which is lower than the industry average of 17x.
Simply Wall St - – Full articleWells Fargo & Company (NYSE:WFC): Is Financials An Attractive Sector Play?
See our latest analysis for Wells Fargo What’s the catalyst for Wells Fargo's sector growth? … Wells Fargo lags the pack with its negative growth rate of -0.25% over the past year, which indicates the company will be growing at a slower pace than its banking peers. … Although Wells Fargo is poised to deliver a 13.10% growth next year, moving it from negative to positive territory, it still lags its industry average rate of growth of 25.35%.
Simply Wall St - – Full articleWas Wells Fargo & Company's (NYSE:WFC) Earnings Decline Part Of A Broader Industry Downturn?
In this article, I will take a look at Wells Fargo & Company's (NYSE:WFC) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, along with how the rest of WFC's industry performed. … See our latest analysis for Wells Fargo How Did WFC's Recent Performance Stack Up Against Its Past? … For Wells Fargo, its latest earnings (trailing twelve month) is US$20.05B, which compared to the previous year's figure, has dropped by -2.28%.
Simply Wall St - – Full articleIs Wells Fargo & Company (NYSE:WFC) A Smart Pick For Income Investors?
Over the past 10 years, Wells Fargo & Company (NYSE:WFC) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … View our latest analysis for Wells Fargo 5 questions to ask before buying a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is it the top 25% annual dividend yield payer? … Relative to peers, Wells Fargo generates a yield of 2.85%, which is on the low-side for Banks stocks.Next Steps: With these dividend metrics in mind, I definitely rank Wells Fargo as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy.
Simply Wall St - – Full articleWells Fargo & Company (NYSE:WFC) Is Undervalued By 2%
NYSE:WFC Intrinsic Value May 7th 18 The Calculation The key assumption for this model is, the value of the company is how much money it can generate from its current level of equity capital, in excess of the cost of that capital. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (12.27% – 9.92%) * $40.48 = $0.95 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $0.95 / (9.92% – 2.47%) = $12.8 Combining these components gives us WFC's intrinsic value per share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $40.48 + $12.8 = $53.29 Relative to today's price of $52.41, WFC is fairly priced by the market.
Simply Wall St - – Full articleShould You Buy Wells Fargo & Company (NYSE:WFC)?
Wells Fargo & Company (NYSE:WFC) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $65.82 at one point, and dropping to the lows of $50.39. … Let’s take a look at Wells Fargo’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … According to my valuation model, Wells Fargo seems to be fairly priced at around 1.45% below my intrinsic value, which means if you buy Wells Fargo today, you’d be paying a fair price for it.
Simply Wall St - – Full articleWhat Makes Wells Fargo & Company (NYSE:WFC) A Hard Investment?
Check out our latest analysis for Wells Fargo NYSE:WFC Historical Debt Apr 19th 18 Is WFC's Leverage Level Appropriate? … What Is WFC's Level of Liquidity? … Compared to the appropriate industry loan to deposit level of 90%, Wells Fargo’s ratio of over 71.87% is sensibly lower and within the safe margin, which places the bank in a relatively safe liquidity position given it has not excessively lent out its deposits and has maintained a suitable level for compliance.Next Steps: Wells Fargo meets all of our liquidity and leverage criteria, exhibiting operational prudency.
Simply Wall St - – Full articleWFC Company Info
Description
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.
Details
| Name: | Wells Fargo & Company |
| WFC | |
| Exchange: | NYSE |
| Founded: | 1852 |
| $219,421,692,424 | |
| 4,541,951,820 | |
| Website: | http://www.wellsfargo.com |
| Address: |
Wells Fargo & Company 420 Montgomery Street, San Francisco, California, 94163, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | WFC | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | NWT | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| XTRA | NWT | Common Stock | XETRA Trading Platform | DE | EUR | 02. Jan 1968 | |
| LSE | 0R2F | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 | |
| SWX | WFC | Common Stock | SIX Swiss Exchange | CH | CHF | 02. Jan 1968 | |
| WBAG | WFC | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 | |
| SNSE | WFC | Common Stock | Santiago Stock Exchange | CL | USD | 02. Jan 1968 | |
| BMV | WFC * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1968 | |
| NYSE | WFC.PRN | DEP SHS REPSTG 1 | New York Stock Exchange | US | USD | 13. Aug 2012 | |
| NYSE | WFC.PRO | DEP1/1000PF CL A | New York Stock Exchange | US | USD | 15. Nov 2012 | |
| NYSE | WFC.PRP | DEP1/1000PF CL A | New York Stock Exchange | US | USD | 19. Mar 2013 | |
| NYSE | WFC.PRQ | DEP SHS 1/1000 A | New York Stock Exchange | US | USD | 16. Jul 2013 | |
| NYSE | WFC.PRR | DEP 1/1000 PFD A | New York Stock Exchange | US | USD | 13. Dec 2013 | |
| NYSE | WFC.PRT | DEP SHS 1/1000 T | New York Stock Exchange | US | USD | 17. Jul 2014 | |
| NYSE | WFC.PRV | DEP PFD V 1/1000 | New York Stock Exchange | US | USD | 10. Sep 2015 | |
| NYSE | WFC.PRW | PFD SER W CL A | New York Stock Exchange | US | USD | 21. Jan 2016 | |
| NYSE | WFC.PRX | PFD SER X CL A | New York Stock Exchange | US | USD | 10. Jun 2016 | |
| NYSE | WFC.PRY | NON CUM PFD Y | New York Stock Exchange | US | USD | 18. Apr 2017 | |
| NYSE | WFC.PRL | PERP PFD CNV A | New York Stock Exchange | US | USD | 15. Apr 2008 | |
| BOVESPA | WFCO34 | BDR EACH REPR 1 COM SH | Bolsa de Valores de Sao Paulo | BR | BRL | 03. Jan 2012 | |
| BASE | WFC | CEDEAR EACH 5 REP 1 COM USD1.666666 | Buenos Aires Stock Exchange | AR | ARS | 26. Jul 2001 | |
| DB | NWT2 | 7.98%-FR PERP PRF CL 'A' SRS K USD1000 | Deutsche Boerse AG | DE | USD | 08. Jan 2009 |
Number of employees
Current staff
Industry
| Diversified Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/24 23:44 |
| End of day share price update: | 2019/03/22 00:00 |
| Last estimates confirmation: | 2019/03/20 |
| Last earnings filing: | 2019/02/27 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
