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
Flawless balance sheet second-rate dividend payer.
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.
7 Day Return
1 Year Return
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.
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 StDon't Race Out To Buy Wells Fargo & Company (NYSE:WFC) Just Because It's Going Ex-Dividend
2 months ago | Simply Wall StDoes It Make Sense To Buy Wells Fargo & Company (NYSE:WFC) For Its Yield?
3 months ago | Simply Wall StHow Much Did Wells Fargo's(NYSE:WFC) Shareholders Earn From Share Price Movements Over The Last Three Years?
Is Wells Fargo undervalued compared to its fair value and its price relative to the market?
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.
How is Wells Fargo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
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%).
How has Wells Fargo performed over the past 5 years?
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.
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
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%).
What is Wells Fargo current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Charlie Scharf (55 yo)
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.
Experienced Management: WFC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: WFC's board of directors are seasoned and experienced ( 15.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Wells Fargo & Company's company bio, employee growth, exchange listings and data sources
- 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
- Wells Fargo & Company
- 420 Montgomery Street
- San Francisco
- United States
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|
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.