Wells Fargo & Company
Wells Fargo & Company Fundamental Analysis
Wells Fargo & Company (WFC-PA) shows moderate financial fundamentals with a PE ratio of 13.15, profit margin of 17.27%, and ROE of 11.78%. The company generates $124.4B in annual revenue with moderate year-over-year growth of 8.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WFC-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakWFC-PA struggles to generate sufficient returns from assets.
Valuation Score
ModerateWFC-PA shows balanced valuation metrics.
Growth Score
ExcellentWFC-PA delivers strong and consistent growth momentum.
Financial Health Score
ModerateWFC-PA shows balanced financial health with some risks.
Profitability Score
WeakWFC-PA struggles to sustain strong margins.
Key Financial Metrics
Is WFC-PA Expensive or Cheap?
P/E Ratio
WFC-PA trades at 13.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WFC-PA's PEG of 3.37 indicates potential overvaluation.
Price to Book
The market values Wells Fargo & Company at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.20 times EBITDA. This is generally considered low.
How Well Does WFC-PA Make Money?
Net Profit Margin
For every $100 in sales, Wells Fargo & Company keeps $17.27 as profit after all expenses.
Operating Margin
Core operations generate 20.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.78 in profit for every $100 of shareholder equity.
ROA
Wells Fargo & Company generates $0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wells Fargo & Company generates limited operating cash flow of $-14.32B, signaling weaker underlying cash strength.
Free Cash Flow
Wells Fargo & Company generates weak or negative free cash flow of $-14.32B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.47 in free cash annually.
FCF Yield
WFC-PA converts -5.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
13.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How WFC-PA Stacks Against Its Sector Peers
| Metric | WFC-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.15 | 18.86 | Better (Cheaper) |
| ROE | 11.78% | 847.00% | Weak |
| Net Margin | 17.27% | 4202.00% | Weak |
| Debt/Equity | 1.07 | 0.91 | Neutral |
| Current Ratio | 13.79 | 667.17 | Strong Liquidity |
| ROA | 0.99% | -21543.00% (disorted) | Weak |
WFC-PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wells Fargo & Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.93%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
19.66%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-46.06%
Industry Style: Value, Dividend, Cyclical
Declining