WFC

Wells FargoNYSE:WFC Stock Report

Market Cap

US$188.3b

7D

-0.4%

1Y

93.9%

Updated

22 Sep, 2021

Data

Company Financials +
WFC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

WFC Overview

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.

Wells Fargo Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wells Fargo
Historical stock prices
Current Share PriceUS$45.85
52 Week HighUS$20.76
52 Week LowUS$51.41
Beta1.36
1 Month Change-3.31%
3 Month Change4.30%
1 Year Change93.87%
3 Year Change-15.45%
5 Year Change1.69%
Change since IPO1,521.22%

Recent News & Updates

Sep 15

Wells Fargo: Limited New Sanction Risk

Wells Fargo was hit with a $250 million fine by the OCC for failing to remediate past account issues in a fast enough manner. The large financial had already warned that the regulatory deadlines would be difficult to meet while resolving the CFPB outstanding consent order. The stock is poised to rally as the new management team resolves the current regulatory issues over time and EPS soars from improved efficiency ratios and massive stock buybacks.

Sep 08

Is Wells Fargo Stock Undervalued Or Overvalued? How To View Its Valuation

Wells Fargo has generated great returns over the last year, but shares are still not expensive today. The outlook over the coming years is solid, thanks to cost-cutting efforts and a rapid buyback pace. Shares are trading close to the 52-week high today. Investors might want to wait for a better entry point.

Aug 31
This Estimate of Wells Fargo's (NYSE:WFC) Intrinsic Value will Give Investors a Better Basis for the Company

This Estimate of Wells Fargo's (NYSE:WFC) Intrinsic Value will Give Investors a Better Basis for the Company

Today we will run through one way of estimating the intrinsic value of Wells Fargo & Company (NYSE:WFC) by using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate. Our goal will be to give investors a reference point of the value of the company and help them weigh recent events.

Aug 23

Wells Fargo Marking Time Before Regulatory-Driven Growth Re-Acceleration

Wells Fargo posted complicated second quarter results; the bank posted a pre-provision beat even on the most conservative interpretation, as unusually large equity sales gains boosted the reported numbers. The near-term story in the core operations is the same here as for most banks - improving credit, but weak loan growth and spread leverage. Beyond the next few quarters, WFC has among the highest asset sensitivities and the lifting of the asset cap would likely drive a burst in balance sheet and earnings growth. Wells Fargo's return potential now looks more on par with other large banks, but a successful transition from regulatory remediation and turnaround to core growth could drive upside.

Shareholder Returns

WFCUS BanksUS Market
7D-0.4%-1.6%-1.8%
1Y93.9%67.8%31.5%

Return vs Industry: WFC exceeded the US Banks industry which returned 64.8% over the past year.

Return vs Market: WFC exceeded the US Market which returned 33% over the past year.

Price Volatility

Is WFC's price volatile compared to industry and market?
WFC volatility
WFC Beta1.36
Industry Beta1.37
Market Beta1

Stable Share Price: WFC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WFC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1852259,196Charlie Scharfhttps://www.wellsfargo.com

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 market companies in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations.

Valuation

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

11.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WFC ($45.85) is trading below our estimate of fair value ($51.59)

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 (12.1x) compared to the US Banks industry average (10.6x).

PE vs Market: WFC is good value based on its PE Ratio (12.1x) compared to the US market (17.5x).


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'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 21 analysts?

-4.1%

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 (-4.1% per year).

Earnings vs Market: WFC's earnings are forecast to decline over the next 3 years (-4.1% 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 (-1% per year).

High Growth Revenue: WFC's revenue is forecast to decline over the next 3 years (-1% 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 (9.4%).


Past Performance

How has Wells Fargo performed over the past 5 years?

-19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFC has high quality earnings.

Growing Profit Margin: WFC's current net profit margins (20.4%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: WFC's earnings have declined by 19.6% per year over the past 5 years.

Accelerating Growth: WFC's earnings growth over the past year (470.8%) exceeds its 5-year average (-19.6% per year).

Earnings vs Industry: WFC earnings growth over the past year (470.8%) exceeded the Banks industry 36%.


Return on Equity

High ROE: WFC's Return on Equity (9.3%) 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 (10.1x) is moderate.

Allowance for Bad Loans: WFC has a sufficient allowance for bad loans (206%).

Low Risk Liabilities: 82% 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 (58%) 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?

0.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WFC's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: WFC's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 low payout ratio (10.6%), WFC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WFC's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Charlie Scharf (56 yo)

1.92yrs

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 ($USD20.39M) is above average for companies of similar size in the US market ($USD11.33M).

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 ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: WFC's board of directors are considered experienced (4.6 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 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$188.279b
  • Shares outstanding: 4.11b
  • Website: https://www.wellsfargo.com

Number of Employees


Location

  • Wells Fargo & Company
  • 420 Montgomery Street
  • San Francisco
  • California
  • 94104
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:11
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.