AMEX:EAD

Stock Analysis Report

Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund

Executive Summary

Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund is a closed ended fixed income mutual fund launched and managed by Wells Fargo Funds Management, LLC.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EAD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

EAD

1.9%

US Capital Markets

0.6%

US Market


1 Year Return

13.7%

EAD

19.9%

US Capital Markets

24.6%

US Market

Return vs Industry: EAD underperformed the US Capital Markets industry which returned 21.7% over the past year.

Return vs Market: EAD underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

EADIndustryMarket
7 Day0.2%1.9%0.6%
30 Day1.7%4.3%3.0%
90 Day4.4%13.5%10.6%
1 Year24.1%13.7%22.4%19.9%27.3%24.6%
3 Year29.3%0.2%44.8%36.7%50.5%40.8%
5 Year56.8%-1.8%100.6%82.1%78.9%59.1%

Price Volatility Vs. Market

How volatile is Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund undervalued compared to its fair value and its price relative to the market?

7.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EAD ($8.5) is trading below our estimate of fair value ($9.4)

Significantly Below Fair Value: EAD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EAD is good value based on its PE Ratio (11x) compared to the Capital Markets industry average (36.1x).

PE vs Market: EAD is good value based on its PE Ratio (11x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EAD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EAD is good value based on its PB Ratio (1x) compared to the US Capital Markets industry average (6.6x).

Future Growth

How is Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAD has a large one-off gain of $11.0M impacting its October 31 2019 financial results.

Growing Profit Margin: EAD's current net profit margins (96.7%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: EAD's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: EAD's earnings growth over the past year (1035.6%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: EAD earnings growth over the past year (1035.6%) exceeded the Capital Markets industry 20.6%.


Return on Equity

High ROE: EAD's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund'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: EAD has a low level of unsold assets or inventory.

Debt Coverage by Assets: EAD's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if EAD has a sufficient allowance for bad loans.

Low Risk Liabilities: EAD reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if EAD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EAD has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if EAD has an appropriate level of bad loans.

Dividend

What is Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund's current dividend yield, its reliability and sustainability?

8.32%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EAD's dividend (8.36%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: EAD's dividend (8.36%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: EAD's dividends per share have been stable in the past 10 years.

Growing Dividend: EAD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), EAD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

What is the CEO of Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average management tenure


CEO

Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund has no CEO, or we have no data on them.


Management Age and Tenure

10.0yrs

Average Tenure

52yo

Average Age

Experienced Management: EAD's management team is seasoned and experienced (10 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

69.5yo

Average Age

Experienced Board: EAD's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bob Calhoun

    Senior Vice President

    • Andrew Cestone (49yo)

      Portfolio Manager

      • Debra Early (55yo)

        Senior VP and Head of Risk & Compliance

        • Tenure: 10yrs
      • Jeremy DePalma (45yo)

        Treasurer

        • Tenure: 8yrs
      • Clark Messman (59yo)

        Senior Vice President

        • Tenure: 10yrs
      • Gary Pzegeo

        Managing Director and Interim Head of High Yield Bond Team

        • Phil Susser

          Portfolio Manager

          • Niklas Nordenfelt

            Portfolio Manager


            Board Members

            • Leroy Keith (80yo)

              Non-Interested Trustee

              • Tenure: 16yrs
              • Compensation: US$1.92k
            • Ike Harris (67yo)

              • Tenure: 10yrs
              • Compensation: US$1.92k
            • Michael Scofield (76yo)

              Non-Interested Trustee

              • Tenure: 16yrs
              • Compensation: US$1.92k
            • Donald Willeke (79yo)

              • Tenure: 10yrs
              • Compensation: US$1.92k
            • Tim Penny (68yo)

              • Tenure: 10yrs
              • Compensation: US$1.97k
            • Olivia Mitchell (66yo)

              • Tenure: 10yrs
              • Compensation: US$1.92k
            • Peter Gordon (77yo)

              Chairman

              • Tenure: 10yrs
              • Compensation: US$2.26k
            • Judith Johnson (70yo)

              • Tenure: 10yrs
              • Compensation: US$2.15k
            • David Larcker (69yo)

              • Tenure: 10yrs
              • Compensation: US$1.91k
            • William Ebsworth (62yo)

              Director

              Company Information

              Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund
              • Ticker: EAD
              • Exchange: AMEX
              • Founded: 2003
              • Industry: Asset Management and Custody Banks
              • Sector: Diversified Financials
              • Market Cap: US$534.826m
              • Shares outstanding: 62.63m
              • Website: https://null

              Location

              • Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund
              • 525 Market Street
              • 10th Floor
              • San Francisco
              • California
              • 94105
              • United States

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              EADAMEX (NYSE MKT LLC)YesCommon SharesUSUSDFeb 2003

              Biography

              Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund is a closed ended fixed income mutual fund launched and managed by Wells Fargo Funds Management, LLC. It is co-managed by Wells Capital Management Incorporated. The fund invests in the fixed income markets of the United States. It primarily invests in below investment grade debt securities, high-yield debt securities, loans and preferred stocks rated Ba or lower by Moody's Investors Service, Inc. or BB or lower by Standard & Poor's Ratings Group. The fund benchmarks the performance of its portfolio against Merrill Lynch High Yield Index. It was formerly known as Wells Fargo Advantage Funds - Wells Fargo Advantage Income Opportunities Fund. Wells Fargo Advantage Funds - Wells Fargo Income Opportunities Fund was formed on February 26, 2003 and is domiciled in the United States. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/24 00:08
              End of Day Share Price2020/01/23 00:00
              Earnings2019/10/31
              Annual Earnings2019/04/30


              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.