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Wells Fargo & Company is a banks-diversified business based in the US. Wells Fargo shares (WFC) are listed on the NYSE and all prices are listed in US Dollars. Wells Fargo employs 243,674 staff and has a trailing 12-month revenue of around $76.7 billion.
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| Latest market close | $43.54 |
|---|---|
| 52-week range | $36.29 - $59.56 |
| 50-day moving average | $43.60 |
| 200-day moving average | $46.81 |
| Wall St. target price | $52.85 |
| PE ratio | 8.343 |
| Dividend yield | $0.9 (2.98%) |
| Earnings per share (TTM) | $4.17 |
Wells Fargo is one of the largest US banks, and it offers consumer banking, commercial banking, corporate and investment banking and wealth and investment management. The bank has the third most deposits in the US, behind JPMorgan and Bank of America. It’s also one of the largest issuers of credit and debit cards and it provides its services and products to 70 million consumers and small businesses.
On top of being a major player in the US banking industry, Wells Fargo launched a plan to cut $8 billion in expenses in 2021 to raise its efficiency ratio. Another positive aspect for the bank going forward is that Wells Fargo plans to invest in its regulatory infrastructure to get into compliance with regulators.
The bank has an asset cap of $1.95 trillion imposed by the Fed in February 2018. The cap was placed because the bank continuously failed to stop compliance breakdowns in its banking, lending and auto insurance divisions.
However, it’s likely that the cap will be removed sometime in 2022. Then Wells Fargo can focus on expanding its balance sheet and growing further, which may cause the stock to move higher.
Investing in Wells Fargo comes with two main risks: regulatory and macroeconomic. The first one comes as a risk because this is a large bank with more than 260,000 employees and numerous branches and divisions — which makes it a good target for regulators. This can carry fines for the bank and possibly limitations such as the asset cap from 2018.
The macroeconomic risk comes in the form of interest rate changes and its effects on credit and debt cycles. These are not under management control and can impact the bank’s income.
What’s more, the bank has to undergo an annual stress test by the Federal Reserve. Depending on the results, the bank can be subject to some restrictions. This can negatively affect the stock price.
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this isn’t a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots.
Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder isn’t responsible for how your stock performs.
It depends on your goals. If you’re looking for massive gains to double your investment in a short amount of time, look elsewhere. Wells Fargo doesn’t seem likely to reach $100 yet.
However, if you’re looking for a stable stock that offers a dividend — although low compared to other banks — Wells Fargo could be worth investing in.
Most analysts have either a buy or hold rating with a target price of between $45 and $57 in the next 12 months. This can change of course. But, this isn’t a growth stock, so it likely won’t change quickly.
Historical closes compared with the close of $43.54 from 2022-10-04
| 1 week (2022-09-29) | 7.51% |
|---|---|
| 1 month (2022-09-02) | N/A |
| 3 months (2022-07-02) | N/A |
| 6 months (2022-04-02) | N/A |
| 1 year (2021-10-06) | -9.05% |
|---|---|
| 2 years (2020-10-06) | 80.07% |
| 3 years (2019-10-04) | 49.21 |
| 5 years (2017-10-06) | 55.58 |
Valuing Wells Fargo stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Wells Fargo's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Wells Fargo's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 8x. In other words, Wells Fargo shares trade at around 8x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Wells Fargo's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.1655. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Wells Fargo's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
| Revenue TTM | $76.7 billion |
|---|---|
| Operating margin TTM | 30.53% |
| Gross profit TTM | $82.9 billion |
| Return on assets TTM | 0.97% |
| Return on equity TTM | 1005.68% |
| Profit margin | 23.04% |
| Book value | $41.69 |
| Market capitalisation | $157.7 billion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Wells Fargo.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 34.31
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Wells Fargo's overall score of 34.31 (as at 01/01/2019) is pretty weak – landing it in it in the 63rd percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Wells Fargo is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 2.65/100
Wells Fargo's environmental score of 2.65 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Wells Fargo is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 15.06/100
Wells Fargo's social score of 15.06 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Wells Fargo is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 16.6/100
Wells Fargo's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Wells Fargo is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 5/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Wells Fargo scored a 5 out of 5 for controversy – the lowest score possible, reflecting that Wells Fargo's public profile has been damaged by multiple incidents.
Wells Fargo & Company was last rated for ESG on: 2019-01-01.
| Total ESG score | 34.31 |
|---|---|
| Total ESG percentile | 62.92 |
| Environmental score | 2.65 |
| Environmental score percentile | 4 |
| Social score | 15.06 |
| Social score percentile | 4 |
| Governance score | 16.6 |
| Governance score percentile | 4 |
| Level of controversy | 5 |
Dividend payout ratio: 24.75% of net profits
Recently Wells Fargo has paid out, on average, around 24.75% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.98% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Wells Fargo shareholders could enjoy a 2.98% return on their shares, in the form of dividend payments. In Wells Fargo's case, that would currently equate to about $0.9 per share.
While Wells Fargo's payout ratio might seem low, this can signify that Wells Fargo is investing more in its future growth.
Wells Fargo's most recent dividend payout was on 1 September 2022. The latest dividend was paid out to all shareholders who bought their shares by 4 August 2022 (the "ex-dividend date").
Wells Fargo's shares were split on a 2:1 basis on 14 August 2006. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Wells Fargo shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Wells Fargo shares which in turn could have impacted Wells Fargo's share price.
Over the last 12 months, Wells Fargo's shares have ranged in value from as little as $36.2903 up to $59.5622. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Wells Fargo's is 1.1598. This would suggest that Wells Fargo's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services. The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services to corporate, commercial real estate, government, and institutional clients.
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