Wells Fargo (WFC) Stock Analysis
This is a peer-relative look at Wells Fargo (WFC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Banks peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | WFC |
|---|---|
| Name | Wells Fargo & Company |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Banks |
| GICS Industry | Banks |
| GICS Sub-Industry | Diversified Banks |
| Market Capitalization | 268.50 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 1, 1972 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| Total Return (1Y) | 11.69% | 29.50% |
| Total Return (3Y, Annualized) | 27.19% | 22.98% |
| Total Return (5Y, Annualized) | 16.66% | 12.20% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 26.65% | 26.39% |
| Beta (5Y) | 0.92 | 0.72 |
| Max Drawdown (5Y) | -37.10% | -43.52% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.29 | 0.96 |
| Sortino Ratio (1Y) | 0.41 | 1.43 |
Profitability
ROE (TTM)
Wells Fargo (WFC) posts ROE of 12.58%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
WFC
Banks industry group
12.58%
Group distribution
- Max
- 19.84%
- Q3
- 13.14%
- WFC
- 12.58%
- Median
- 10.82%
- Q1
- 8.64%
- Min
- 3.15%
Largest peers
- JPM
- 17.79%
- RY
- 16.20%
- WFC
- 12.58%
- HSBC
- 11.61%
- BAC
- 11.20%
- MUFG
- 9.40%
- C
- 8.53%
Net Margin (TTM)
Wells Fargo (WFC) keeps 27.23% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
WFC
Banks industry group
27.23%
Group distribution
- Max
- 47.55%
- Q3
- 34.66%
- Median
- 30.25%
- WFC
- 27.23%
- Q1
- 25.91%
- Min
- 12.81%
Largest peers
- HSBC
- 34.98%
- JPM
- 34.92%
- RY
- 33.69%
- BAC
- 29.52%
- WFC
- 27.23%
- MUFG
- 25.77%
- C
- 21.83%
Operating Margin (TTM)
operating margin is set aside for Wells Fargo (WFC) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| ROE (TTM) | 12.58% | 10.82% |
| ROA (TTM) | 1.08% | 1.16% |
| Net Margin (TTM) | 27.23% | 30.25% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Wells Fargo (WFC) grew revenue 1.70%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.
EPS Growth
Wells Fargo (WFC) grew earnings per share 16.57%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 1.70% | 11.31% |
| Revenue Growth (3Y CAGR) | 4.02% | 6.24% |
| EPS Growth (YoY) | 16.57% | 15.83% |
| EPS Growth (3Y CAGR) | 25.86% | 3.17% |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Wells Fargo (WFC) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for Wells Fargo (WFC) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Wells Fargo (WFC) has dividend yield of 2.09%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
WFC
Banks industry group
2.09%
Group distribution
- Max
- 6.20%
- Q3
- 3.10%
- Median
- 2.21%
- WFC
- 2.09%
- Q1
- 1.00%
- Min
- 0.00%
Largest peers
- MUFG
- 401.68%
- RY
- 3.02%
- WFC
- 2.09%
- C
- 1.86%
- BAC
- 1.85%
- JPM
- 1.77%
- HSBC
- 0.76%
Dividend Payout Ratio (TTM)
Wells Fargo (WFC) has payout ratio of 26.16%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
WFC
Banks industry group
26.16%
Group distribution
- Max
- 74.89%
- Q3
- 42.28%
- Median
- 28.91%
- WFC
- 26.16%
- Q1
- 19.60%
- Min
- 0.00%
Largest peers
- HSBC
- 61.98%
- RY
- 41.35%
- WFC
- 26.16%
- BAC
- 25.87%
- C
- 25.86%
- JPM
- 25.71%
- MUFG
- 15.74%
Dividend Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.09% | 2.21% |
| Dividend Payout Ratio (TTM) | 26.16% | 28.91% |
Valuation
P/E Ratio (TTM)
Wells Fargo (WFC) trades at P/E ratio of 12.55, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
WFC
Banks industry group
12.55
Group distribution
- Max
- 21.86
- Q3
- 15.93
- Median
- 13.25
- WFC
- 12.55
- Q1
- 11.80
- Min
- 6.78
Largest peers
- RY
- 19.42
- HSBC
- 16.36
- MUFG
- 16.26
- JPM
- 14.51
- BAC
- 13.95
- C
- 13.87
- WFC
- 12.55
P/S Ratio (TTM)
P/S ratio is not assessed for Wells Fargo (WFC) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.
P/B Ratio (MRQ)
Wells Fargo (WFC) trades at 1.65 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
WFC
Banks industry group
1.65
Group distribution
- Max
- 2.34
- WFC
- 1.65
- Q3
- 1.64
- Median
- 1.36
- Q1
- 1.16
- Min
- 0.68
Largest peers
- HSBC
- 7.95
- RY
- 3.21
- JPM
- 2.60
- MUFG
- 2.07
- WFC
- 1.65
- BAC
- 1.56
- C
- 1.16
Valuation Metrics
| Metric | Current stock: WFC | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 12.55 | 13.25 |
| P/S Ratio (TTM) | -- | -- |
| P/B Ratio (MRQ) | 1.65 | 1.36 |
| Free Cash Flow Yield (TTM) | -- | -- |