-0.15%
12.04%
21.22%
32.62%
56.83%
46.28%
67.66%
AI Spotlight on WFC
Company Description
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.Its products and services comprise corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services.The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients.
It also operates through financial advisors.Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.
Market Data
| Last Price | 78.7 |
| Change Percentage | -0.15% |
| Open | 78.69 |
| Previous Close | 78.82 |
| Market Cap ( Millions) | 262028 |
| Volume | 735216 |
| Year High | 79.06 |
| Year Low | 47.45 |
| M A 50 | 73.45 |
| M A 200 | 62.67 |
Financial Ratios
| FCF Yield | 3.37% |
| Dividend Yield | 1.90% |
| ROE | 10.96% |
| Debt / Equity | 96.63% |
| Net Debt / EBIDTA | 62.33% |
| Price To Book | 1.46 |
| Price Earnings Ratio | 13.24 |
| Price To FCF | 29.68 |
| Price To sales | 3.28 |
| EV / EBITDA | 5.96 |
News
- Jan -29 - CFPB Terminates 2022 Consent Order Against Wells Fargo
- Jan -28 - Wells Fargo & Company Announces Common Stock Dividend
- Jan -28 - Microsoft Co. (NASDAQ:MSFT) Shares Sold by Makena Capital Management LLC
- Jan -28 - Darwin Wealth Management LLC Invests $5.10 Million in Microsoft Co. (NASDAQ:MSFT)
- Jan -24 - Trump bashes CEOs of America's 2 biggest banks in front of Davos crowd
- Jan -23 - Ally Financial price target raised to $34 from $32 at Wells Fargo
- Jan -22 - Is Wells Fargo Stock a Smart Investment Option Post Q4 Earnings?
- Jan -22 - Banks Kick Q4 Earnings Season Off With A Bang As CEO Sentiment Improves
- Jan -21 - ETFs to Play Upbeat Bank Earnings
- Jan -21 - 4 PEG-Based Value Stocks to Neutralize Trump 2.0-Led Market Volatility
- Jan -21 - Wells Fargo Names Ed Olebe as Head of Cards and Merchant Services
- Jan -21 - Wells Fargo: Likely Fairly Valued (Rating Upgrade)
- Jan -20 - Best Income Stocks to Buy for January 20th
- Jan -18 - Bank profit growth is just beginning: CFRA analyst
- Jan -17 - Wells Fargo and Merrill Lynch Settle SEC Charges Involving Cash Sweeps
- Jan -17 - Banks Are Booming, But Keep an Eye on the Consumer
- Jan -17 - Wells Fargo Q4 Earnings: Generally Strong But Signs Of Weakening
- Jan -17 - Best Momentum Stock to Buy for January 17th
- Jan -17 - Wells Fargo Stock: Good Times Ahead
- Jan -16 - Why Wells Fargo (WFC) is a Great Dividend Stock Right Now
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Consumer Banking and Lending
Expected Growth : 3.5 %
What the company do ?
Wells Fargo's Consumer Banking and Lending segment provides credit, deposit, and investment products to consumers and small businesses.
Why we expect these perspectives ?
Wells Fargo's 3.5% growth in Consumer Banking and Lending is driven by increasing demand for credit cards, personal loans, and mortgages. Strong brand recognition, expanded digital capabilities, and strategic partnerships also contribute to growth. Additionally, the company's focus on customer experience, risk management, and cost discipline enables it to maintain a competitive edge in the market.
Segment n°2 -> Corporate and Investment Banking
Expected Growth : 3.8 %
What the company do ?
Wells Fargo's Corporate and Investment Banking provides financial solutions to large corporations, governments, and institutional clients, offering capital markets, treasury management, and lending services.
Why we expect these perspectives ?
Wells Fargo's Corporate and Investment Banking segment growth of 3.8% is driven by increasing demand for debt and equity underwriting, strong M&A activity, and growth in loan balances. Additionally, the segment benefits from the company's diversified client base, strategic investments in digital platforms, and a favorable interest rate environment.
Segment n°3 -> Wealth and Investment Management
Expected Growth : 4.2 %
What the company do ?
Wealth and Investment Management from Wells Fargo & Company provides financial planning, investment management, and wealth management services to individuals, families, and institutions.
Why we expect these perspectives ?
Wells Fargo's Wealth and Investment Management segment growth of 4.2% is driven by increasing demand for investment products and services, strong advisor productivity, and growth in assets under management. Additionally, the segment benefits from the company's digital transformation efforts, expanded wealth management offerings, and strategic acquisitions.
Segment n°4 -> Commercial Banking
Expected Growth : 3.2 %
What the company do ?
Wells Fargo's Commercial Banking provides financial solutions to businesses with annual sales ranging from $5 million to $2 billion, offering credit, treasury management, and investment services.
Why we expect these perspectives ?
Wells Fargo's Commercial Banking segment growth of 3.2% is driven by a strong loan portfolio, increased demand for credit, and a growing treasury management business. Additionally, the segment has benefited from a favorable interest rate environment, solid credit quality, and effective expense management. These factors have enabled the segment to maintain its market share and drive revenue growth.
Segment n°5 -> Reconciling Items
Expected Growth : 3.0 %
What the company do ?
Reconciling Items from Wells Fargo & Company refers to the process of identifying and resolving discrepancies between the company's internal financial records and the bank statements provided by Wells Fargo.
Why we expect these perspectives ?
Wells Fargo's 3.0% growth is driven by increasing consumer spending, rising interest rates, and a strong housing market. Additionally, the bank's efforts to improve operational efficiency, invest in digital transformation, and expand its wealth and investment management business are contributing to its growth.
Segment n°6 -> Corporate
Expected Growth : 4.0 %
What the company do ?
Wells Fargo & Company's Corporate segment provides a range of wholesale banking products and services to large corporate and institutional clients.
Why we expect these perspectives ?
Wells Fargo's Corporate segment growth of 4.0% is driven by increasing commercial loan demand, expansion of treasury management services, and growth in investment banking fees. Additionally, the segment benefits from a strong economy, low unemployment, and rising interest rates, which boost lending and deposit growth.
Wells Fargo & Company Products
| Product Range | What is it ? |
|---|---|
| Consumer Banking | Provides checking and savings accounts, credit cards, personal loans, and mortgages to individual consumers. |
| Corporate Banking | Offers cash management, treasury management, and lending services to large corporations and institutions. |
| Commercial Banking | Provides financial solutions, including lending, treasury management, and risk management to small and medium-sized businesses. |
| Wealth and Investment Management | Offers investment products, brokerage services, and wealth management advice to individuals and institutions. |
| Mortgage Banking | Originates, sells, and services residential and commercial mortgages. |
| Home Lending | Provides mortgage loans, home equity loans, and home equity lines of credit to individual consumers. |
| Credit Cards | Issues credit cards to consumers and small businesses, offering rewards, cashback, and other benefits. |
| Auto Finance | Provides financing for new and used vehicles, as well as leasing options. |
| Student Lending | Offers private student loans and consolidation loans to students and parents. |
| Insurance | Provides insurance products, including life insurance, disability insurance, and long-term care insurance. |
Wells Fargo & Company's Porter Forces
Threat Of Substitutes
Wells Fargo & Company faces moderate threat from substitutes due to the presence of digital payment systems and fintech companies, but the switching costs for customers are relatively high.
Bargaining Power Of Customers
Wells Fargo & Company has a large customer base, and individual customers have limited bargaining power, reducing the overall bargaining power of customers.
Bargaining Power Of Suppliers
Wells Fargo & Company has a diverse supplier base, and no single supplier has significant bargaining power, reducing the overall bargaining power of suppliers.
Threat Of New Entrants
The banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to enter the market.
Intensity Of Rivalry
The banking industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 54.16% |
| Debt Cost | 9.82% |
| Equity Weight | 45.84% |
| Equity Cost | 9.82% |
| WACC | 9.82% |
| Leverage | 118.16% |
Wells Fargo & Company : Quality Control
Wells Fargo & Company passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| EWBC | East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals. It operates … |
| JPM | JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and … |
| TFC | Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and … |
| C | Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, … |
| BAC | Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Truist
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JPMorgan Chase
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East West Bank
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4
Wells Fargo
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5
Citigroup
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1-Year Total Return ->
6
