Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $299.15B
• Dividend Yield: 1.8%
• Average Volume (3M): 14.04M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.04
• Revenue Growth: -4.37%
• EPS Growth: 26.41%
• Country: US
• Employees: 215,367
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.66
• Shares Outstanding: 3,139,084,500
• 10 Day Avg. Volume: 16,023,469
• 30 Day Avg. Volume: 14,039,734
• PEG Ratio: 1.08
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 79.29
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 5.44
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 22.08
• 1Y Price Target: $96.72
• Price Target Upside: 2.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 6.33
• Revenue Forecast (FY): $84.06B

• Rating: 80 Outperform
• Price Target: $104.00 ▲(10.09% Upside)

Wells Fargo's overall stock score is driven by strong earnings call results and technical analysis, indicating positive momentum and strategic growth opportunities. Financial performance shows robust profitability but highlights the need for improved cash flow management. Valuation remains attractive, supporting the stock's potential for future gains.

Positive Factors

Lifting of Asset Cap

The removal of the asset cap enables Wells Fargo to expand its operations and grow its asset base, enhancing its competitive position and allowing for strategic growth opportunities.

Investment Banking Growth

Strong growth in investment banking fees indicates robust demand for advisory services and enhances revenue diversification, supporting long-term financial stability.

AI Leadership Appointment

Appointing a leader for AI initiatives positions Wells Fargo to leverage technology for operational efficiency and innovation, which is crucial for maintaining a competitive edge.

Negative Factors

Rising Debt Levels

Higher leverage can increase financial risk, especially in a rising interest rate environment, potentially impacting the company's financial flexibility and stability.

Negative Cash Flow

Negative cash flows indicate potential liquidity issues, which could constrain the company's ability to invest in growth opportunities and meet financial obligations.

Decline in Commercial Real Estate Revenue

A decline in commercial real estate revenue reflects challenges in this segment, which could impact overall revenue growth and profitability if not addressed.

Wells Fargo Business Overview & Revenue Model

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.

How the Company Makes Money

Wells Fargo generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees for services. Key revenue streams include interest earned on commercial and consumer loans, residential mortgages, and credit card lending. Additionally, the company earns fees from wealth management services, investment banking, and transaction services. Significant partnerships with various financial institutions and businesses enhance its product offerings and customer reach. Factors contributing to its earnings include the management of interest rates, loan demand, and the overall economic environment.

Wells Fargo Financial Statement Overview

Summary

Wells Fargo shows strong profitability with a robust gross profit margin of 64.5% and a net profit margin of 17.2%. However, increased leverage with a debt-to-equity ratio of 2.25 and negative cash flows in the TTM highlight potential financial risks. The company needs to focus on improving cash flow management and controlling debt levels.

Income Statement

Wells Fargo has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 18.9%. The gross profit margin is robust at 64.5%, and the net profit margin has improved to 17.2%. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in revenue from 2024 to 2025 suggests potential challenges in maintaining growth momentum.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.25 in the TTM, indicating higher leverage, which could pose risks if interest rates rise. Return on equity remains solid at 11.7%, reflecting effective use of equity. The equity ratio is stable, suggesting a balanced asset structure, but the increased debt levels warrant caution.

Cash Flow

Wells Fargo's cash flow situation is concerning, with negative operating and free cash flows in the TTM. The free cash flow growth rate is positive, but the operating cash flow to net income ratio is negative, indicating potential liquidity issues. The company needs to improve its cash flow management to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.56B	125.40B	115.34B	83.44B	83.08B	82.23B
Gross Profit	79.07B	77.96B	77.20B	72.83B	83.32B	60.13B
EBITDA	30.19B	30.92B	27.91B	22.46B	37.45B	10.72B
Net Income	21.06B	19.72B	19.14B	13.68B	22.11B	3.38B
Balance Sheet
Total Assets	2.06T	1.93T	1.93T	1.88T	1.95T	1.95T
Cash, Cash Equivalents and Short-Term Investments	486.13B	363.46B	362.61B	272.75B	411.47B	485.00B
Total Debt	408.42B	281.88B	297.15B	226.01B	195.10B	271.95B
Total Liabilities	1.88T	1.75T	1.75T	1.70T	1.76T	1.77T
Stockholders Equity	181.15B	179.12B	185.74B	180.23B	187.61B	184.68B
Cash Flow
Free Cash Flow	-14.22B	3.04B	40.36B	27.05B	-11.53B	2.05B
Operating Cash Flow	-14.22B	3.04B	40.36B	27.05B	-11.53B	2.05B
Investing Cash Flow	-103.39B	-15.65B	16.04B	-42.48B	-7.62B	122.55B
Financing Cash Flow	106.00B	-21.53B	20.49B	-59.65B	-11.24B	-1.24B

Wells Fargo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFC, the sentiment is Positive. The current price of 94.47 is above the 20-day moving average (MA) of 90.69, above the 50-day MA of 87.33, and above the 200-day MA of 78.58, indicating a bullish trend. The MACD of 2.30 indicates Negative momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 93.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WFC.

Wells Fargo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WFC	80 Outperform	$299.15B	15.70	11.56%	1.80%	-4.37%	26.41%
HSBC	78 Outperform	$272.79B	16.80	8.66%	4.14%	-9.54%	-22.46%
USB	76 Outperform	$85.40B	12.58	11.69%	3.77%	2.91%	33.77%
BAC	72 Outperform	$410.77B	15.33	9.87%	1.93%	0.15%	33.84%
JPM	72 Outperform	$896.09B	16.30	16.35%	1.79%	1.89%	12.32%
C	68 Neutral	$217.50B	17.09	6.88%	1.94%	-0.62%	105.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Wells Fargo Corporate Events

Wells Fargo Announces Redemption of Debentures

On December 12, 2025, Wells Fargo announced the redemption of its Floating Rate Junior Subordinated Deferrable Interest Debentures due January 15, 2027, with the optional prepayment date set for January 15, 2026. This redemption will remove a covenant that previously restricted Wells Fargo’s ability to repurchase or redeem its 3.90% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series BB, potentially impacting the company’s financial flexibility and stakeholder interests.

Wells Fargo Announces Q3 2025 Financial Results

On October 14, 2025, Wells Fargo announced its third-quarter financial results, reporting a net income of $5.6 billion, or $1.66 per diluted share. The company experienced an increase in total revenue to $21.4 billion compared to the previous year. Notable changes included a restructuring of business segments and a significant share repurchase program. Additionally, Charlie Scharf was appointed as Chairman of the Board, with Steven Black named as Lead Independent Director, signaling strategic leadership changes.