NYSE:WFC

Stock Analysis Report

Executive Summary

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions.

Snowflake

Fundamentals

Flawless balance sheet established 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


Market Performance


7 Day Return

3.0%

WFC

4.8%

US Banks

2.3%

US Market


1 Year Return

-8.9%

WFC

0.04%

US Banks

5.6%

US Market

Return vs Industry: WFC underperformed the US Banks industry which returned 0% over the past year.

Return vs Market: WFC underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

WFCIndustryMarket
7 Day3.0%4.8%2.3%
30 Day1.2%-0.5%-1.0%
90 Day8.2%2.0%-0.7%
1 Year-5.4%-8.9%2.9%0.04%7.9%5.6%
3 Year20.5%9.6%51.5%41.1%45.6%36.3%
5 Year15.0%-1.2%70.9%52.3%65.8%47.6%

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

Valuation

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

10.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WFC ($49.59) is trading above our estimate of fair value ($44.67)

Significantly Undervalued: WFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WFC is good value based on its PE Ratio (10.6x) compared to the Banks industry average (12.6x).

PE vs Market: WFC is good value based on its PE Ratio (10.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Wells Fargo forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-5.0%

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 (-5% per year).

Earnings vs Market: WFC's earnings are forecast to decline over the next 3 years (-5% 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 (-2.2% per year).

High Growth Revenue: WFC's revenue is forecast to decline over the next 3 years (-2.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WFC's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Wells Fargo performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WFC's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: WFC's earnings growth over the past year (1.9%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: WFC earnings growth over the past year (1.9%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: WFC's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: WFC has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate WFC's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: WFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: WFC's debt is covered by short term assets (assets are 1.039510x debt).


Financial Institutions Analysis

Asset Level: WFC's level of assets compared to its equity is low.

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 (0.62%)


Next Steps

Dividend

What is Wells Fargo's current dividend yield, its reliability and sustainability?

4.11%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WFC's dividend (4.11%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WFC's dividend (4.11%) is in the top 25% of dividend payers in the US market (3.76%)

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 reasonably low payout ratio (37.6%), 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 well covered by earnings (40% payout ratio).


Next Steps

Management

What is the CEO of Wells Fargo's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

C. Parker (64yo)

0.6yrs

Tenure

0

Mr. C. Allen Parker serves as Interim CEO, President and Director of Wells Fargo & Company since March 28, 2019. Mr. Parker served as the Senior Executive Vice President and General Counsel of Wells Fargo  ...


Management Age and Tenure

3.4yrs

Average Tenure

57yo

Average Age

Experienced Management: WFC's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

65yo

Average Age

Experienced Board: WFC's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,316,41914 May 19
Petros Pelos
EntityIndividual
Role
Senior Key Executive
Senior Executive Vice President of Wholesale Banking
Shares28,304
Max PriceUS$46.51

Ownership Breakdown


Management Team

  • John Campbell (85yo)

    Head of Investor Relations

    • Tenure: 0yrs
  • Debra Chrapaty (58yo)

    Chief Technology Officer

    • Tenure: 0.3yrs
  • Rich Levy (61yo)

    Executive VP

    • Tenure: 0yrs
  • C. Parker (64yo)

    Interim CEO

    • Tenure: 0.6yrs
  • Avid Modjtabai (57yo)

    Head of Payments

    • Tenure: 12.5yrs
    • Compensation: US$10.39m
  • Mary Mack (56yo)

    Head of Consumer Banking

    • Tenure: 2.7yrs
    • Compensation: US$8.60m
  • John Shrewsberry (53yo)

    Senior EVP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$12.53m
  • Hope Hardison (54yo)

    Chief Administrative Officer

    • Tenure: 4.2yrs
  • Perry Pelos (55yo)

    Senior Executive Vice President of Wholesale Banking

    • Tenure: 10.7yrs
    • Compensation: US$8.99m
  • David Pope

    Chief Operating Office

    • Tenure: 0.3yrs

Board Members

  • Ron Sargent (63yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$359.16k
  • Ted Craver (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$403.60k
  • Don James (70yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$358.00k
  • John Baker (70yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$350.00k
  • Betsy Duke (66yo)

    Independent Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$631.00k
  • C. Parker (64yo)

    Interim CEO

    • Tenure: 0.6yrs
  • Henry Jordan (63yo)

    Chairman & CEO of Wells Fargo Capital Finance

    • Tenure: 0yrs
  • Maria Morris (56yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$412.61k
  • Jim Quigley (67yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$417.00k
  • Zan Vautrinot (59yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$348.16k

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$211.707b
  • Shares outstanding: 4.27b
  • Website: https://www.wellsfargo.com

Number of Employees


Location

  • Wells Fargo & Company
  • 420 Montgomery Street
  • San Francisco
  • California
  • 94163
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WFCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
WFCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
0R2FLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
WFC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
NWTXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
WFCSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
NWTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
WFCSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
WFCBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REP 1 COM USD1.666666ARARSJul 2001
WFC.PRLNYSE (New York Stock Exchange)PERP PFD CNV AUSUSDApr 2008
NWT2DB (Deutsche Boerse AG)7.98%-FR PERP PRF CL 'A' SRS K USD1000DEUSDJan 2009
WFCO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHBRBRLJan 2012
WFC.PRNNYSE (New York Stock Exchange)DEP SHS REPSTG 1USUSDAug 2012
WFC.PRONYSE (New York Stock Exchange)DEP1/1000PF CL AUSUSDNov 2012
WFC.PRPNYSE (New York Stock Exchange)DEP1/1000PF CL AUSUSDMar 2013
WFC.PRQNYSE (New York Stock Exchange)DEP SHS 1/1000 AUSUSDJul 2013
WFC.PRRNYSE (New York Stock Exchange)DEP 1/1000 PFD AUSUSDDec 2013
WFC.PRTNYSE (New York Stock Exchange)DEP SHS 1/1000 TUSUSDJul 2014
WFC.PRVNYSE (New York Stock Exchange)DEP PFD V 1/1000USUSDSep 2015
WFC.PRWNYSE (New York Stock Exchange)PFD SER W CL AUSUSDJan 2016
WFC.PRXNYSE (New York Stock Exchange)PFD SER X CL AUSUSDJun 2016
WFC.PRYNYSE (New York Stock Exchange)5.625 DP SH PF YUSUSDApr 2017
NWTDDB (Deutsche Boerse AG)5.9%-FRN SUB PERP USD 'S'DEUSDJun 2019

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:42
End of Day Share Price2019/10/16 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.