Wells Fargo
Market Cap
US$117.7b
Last Updated
2020/04/08 04:18 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -8.6% per year for the next 3 years
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
8.3%
WFC
0.7%
US Banks
2.4%
US Market
1 Year Return
-39.8%
WFC
-28.9%
US Banks
-10.0%
US Market
Return vs Industry: WFC underperformed the US Banks industry which returned -28.9% over the past year.
Return vs Market: WFC underperformed the US Market which returned -10% over the past year.
Shareholder returns
| WFC | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.3% | 0.7% | 2.4% |
| 30 Day | -11.4% | -18.9% | -11.0% |
| 90 Day | -45.4% | -39.2% | -19.4% |
| 1 Year | -37.3%-39.8% | -26.8%-28.9% | -8.1%-10.0% |
| 3 Year | -40.1%-45.8% | -17.2%-23.3% | 17.3%9.6% |
| 5 Year | -38.5%-47.5% | 8.1%-4.4% | 36.1%21.1% |
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
2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Wells Fargo & Company's (NYSE:WFC) P/E Ratio4 weeks ago | Simply Wall St
What Is Wells Fargo's (NYSE:WFC) P/E Ratio After Its Share Price Tanked?1 month ago | Simply Wall St
When Should You Buy Wells Fargo & Company (NYSE:WFC)?Valuation
Is Wells Fargo undervalued compared to its fair value and its price relative to the market?
21.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WFC ($28.77) is trading below our estimate of fair value ($36.46)
Significantly Below Fair Value: WFC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WFC is good value based on its PE Ratio (7x) compared to the Banks industry average (8.7x).
PE vs Market: WFC is good value based on its PE Ratio (7x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: WFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: WFC is good value based on its PB Ratio (0.7x) 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 17 analysts?
-8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WFC's earnings are forecast to decline over the next 3 years (-8.6% per year).
Earnings vs Market: WFC's earnings are forecast to decline over the next 3 years (-8.6% per year).
High Growth Earnings: WFC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WFC's revenue is expected to decline over the next 3 years (-2.3% per year).
High Growth Revenue: WFC's revenue is forecast to decline over the next 3 years (-2.3% 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 (9.2%).
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 has high quality earnings.
Growing Profit Margin: WFC's current net profit margins (21.8%) are lower than last year (24.4%).
Past Earnings Growth Analysis
Earnings Trend: WFC's earnings have declined by -1.3% 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 (-13.3%) over the past year, making it difficult to compare to the Banks industry average (10.8%).
Return on Equity
High ROE: WFC's Return on Equity (10.7%) 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's level of assets compared to its equity is moderate.
Allowance for Bad Loans: WFC has a sufficient allowance for bad loans.
Low Risk Liabilities: WFC's liabilities are made up of primarily low risk sources of funding.
Loan Level: WFC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: WFC's loans are broadly funded by customer deposits.
Level of Bad Loans: WFC has an appropriate level of bad loans (0.55%)
Next Steps
Dividend
What is Wells Fargo's current dividend yield, its reliability and sustainability?
7.09%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WFC's dividend (7.09%) is higher than the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: WFC's dividend (7.09%) is in the top 25% of dividend payers in the US market (5.46%)
Stability and Growth of Payments
Stable Dividend: WFC's dividends per share have been stable 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 reasonably low payout ratio (47%), WFC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WFC's dividends in 3 years are forecast to be covered by earnings (52.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Charlie Scharf (54yo)
0.50
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 ($USD11.79M).
Compensation vs Earnings: Insufficient data to compare Charlie's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.50yr | US$36.36m | 0.0043% $5.1m | |
| Senior EVP & CFO | 5.92yrs | US$12.44m | 0.015% $17.2m | |
| Senior EVP & CEO of Commercial Banking | 11.17yrs | US$10.45m | 0.0040% $4.7m | |
| Senior EVP | 3.17yrs | US$10.53m | 0.0035% $4.1m | |
| Senior EVP & Head of Technology | 1yr | US$10.37m | no data | |
| Senior EVP & COO | 0.33yr | no data | no data | |
| Chief Accounting Officer | 0.083yr | no data | no data | |
| Chief Technology Officer | 0.83yr | no data | no data | |
| Chief Administrative Officer | 4.67yrs | no data | 0.0026% $3.1m | |
| Head of Investor Relations | no data | no data | no data |
1.0yrs
Average Tenure
54.5yo
Average Age
Experienced Management: WFC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.50yr | US$36.36m | 0.0043% $5.1m | |
| Chairman & CEO of Wells Fargo Capital Finance | no data | no data | no data | |
| Independent Chairman | 0.083yr | US$232.79k | 0.00050% $588.3k | |
| Independent Director | 2.25yrs | US$360.03k | 0.00028% $329.4k | |
| Independent Director | 11.25yrs | US$376.03k | 0.00060% $705.9k | |
| Member of Environmental Advisory Board | 14.08yrs | no data | no data | |
| Member of Environmental Advisory Board | 14.08yrs | no data | no data | |
| Member of Environmental Advisory Board | 14.08yrs | no data | no data | |
| Member of Environmental Advisory Board | 14.08yrs | no data | no data | |
| Independent Director | 2.25yrs | US$453.36k | no data |
11.3yrs
Average Tenure
64.5yo
Average Age
Experienced Board: WFC's board of directors are seasoned and experienced ( 11.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WFC 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$117.652b
- Shares outstanding: 4.09b
- Website: https://www.wellsfargo.com
Number of Employees
Location
- Wells Fargo & Company
- 420 Montgomery Street
- San Francisco
- California
- 94104
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WFC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| NWT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| WFC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| NWT | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| WFC | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1968 |
| WFC | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| 0R2F | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| WFC | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| WFC | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| WFC | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 5 REP 1 COM USD1.666666 | AR | ARS | Jul 2001 | |
| WFC.PRL | NYSE (New York Stock Exchange) | PERP PFD CNV A | US | USD | Apr 2008 | |
| WFCO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM SH | BR | BRL | Jan 2012 | |
| WFC.PRN | NYSE (New York Stock Exchange) | DEP SHS REPSTG 1 | US | USD | Aug 2012 | |
| WFC.PRO | NYSE (New York Stock Exchange) | DEP1/1000PF CL A | US | USD | Nov 2012 | |
| WFC.PRP | NYSE (New York Stock Exchange) | DEP1/1000PF CL A | US | USD | Mar 2013 | |
| WFC.PRQ | NYSE (New York Stock Exchange) | DEP SHS 1/1000 A | US | USD | Jul 2013 | |
| WFC.PRR | NYSE (New York Stock Exchange) | DEP 1/1000 PFD A | US | USD | Dec 2013 | |
| WFC.PRT | NYSE (New York Stock Exchange) | DEP SHS 1/1000 T | US | USD | Jul 2014 | |
| WFC.PRV | NYSE (New York Stock Exchange) | DEP PFD V 1/1000 | US | USD | Sep 2015 | |
| WFC.PRW | NYSE (New York Stock Exchange) | PFD SER W CL A | US | USD | Jan 2016 | |
| WFC.PRX | NYSE (New York Stock Exchange) | PFD SER X CL A | US | USD | Jun 2016 | |
| WFC.PRY | NYSE (New York Stock Exchange) | 5.625 DP SH PF Y | US | USD | Apr 2017 | |
| WFC.PRZ | NYSE (New York Stock Exchange) | DP PFD A SR Z | US | USD | Jan 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 institutions in the United States and internationally. It operates in three segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Community Banking segment offers checking and savings accounts; credit and debit cards; and automobile, student, mortgage, home equity, and small business lending products. The Wholesale Banking segment provides commercial, corporate, capital markets, cash management, and real estate banking products and services, including traditional commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury management, institutional fixed-income sales, interest rate, commodity and equity risk management, online/electronic products, corporate trust fiduciary and agency services, and investment banking services. It also offers commercial and residential development, land acquisition and development, rehabilitation, permanent securitization, and commercial real estate loans; secured and unsecured lines of credit; affordable housing loans and letters of credit; and interim financing arrangements. The Wealth and Investment Management segment provides personalized wealth management, investment, and retirement products and services; and delivers financial planning, private banking, credit, investment management, and fiduciary services. The company also offers brokerage, and Internet and mobile banking services. As of March 16, 2020, it operated through 7,400 locations; approximately 13,000 ATMs; and offices in 32 countries and territories. The Company was founded in 1852 and is headquartered in San Francisco, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 04:18 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.