NYSE:WFC

Stock Analysis Report

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Market Cap

US$186.6b

Last Updated

2021/06/15 06:14 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet second-rate 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 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.


Market Performance


7 Day Return

-3.1%

WFC

-4.6%

US Banks

0.8%

US Market


1 Year Return

58.3%

WFC

58.9%

US Banks

43.1%

US Market

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.


Shareholder returns

WFCIndustryMarket
7 Day-3.1%-4.6%0.8%
30 Day-3.9%-4.1%3.0%
90 Day13.3%3.6%4.8%
1 Year60.5%58.3%63.6%58.9%45.5%43.1%
3 Year-9.5%-18.0%28.0%17.0%60.2%50.3%
5 Year11.9%-4.4%112.0%85.2%126.4%101.0%

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

Valuation

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

4.3%

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.


Future Growth

How is Wells Fargo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

1.6%

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%).


Past Performance

How has Wells Fargo performed over the past 5 years?

-19.7%

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.


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 (10.4x) 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%).


Dividend

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

0.89%

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).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Charlie Scharf (55 yo)

1.67yrs

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 ($USD20.39M) is above average for companies of similar size in the US market ($USD11.15M).

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


Board Members

Experienced Board: WFC's board of directors are seasoned and experienced ( 15.3 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 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$186.631b
  • Shares outstanding: 4.13b
  • Website: https://www.wellsfargo.com

Number of Employees


Location

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

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 06:14
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
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.