Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $272.81B
• Dividend Yield: 1.96%
• Average Volume (3M): 14.38M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.09
• Revenue Growth: 0.37%
• EPS Growth: 19.89%
• Country: US
• Employees: 215,367
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.60
• Shares Outstanding: 3,203,441,200
• 10 Day Avg. Volume: 16,096,558
• 30 Day Avg. Volume: 14,382,324
• PEG Ratio: 1.16
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 85.00
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 5.02
• Enterprise Value/Gross Profit: 7.91
• Enterprise Value/Ebitda: 19.86
• 1Y Price Target: $87.69
• Price Target Upside: 4.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 72 Outperform
• Price Target: $90.00 ▲(7.00% Upside)

Wells Fargo's overall stock score of 72 reflects a balanced outlook. The most significant factor is the positive sentiment from the earnings call, highlighting strategic growth initiatives and improved financial resilience. While technical analysis and valuation are supportive, financial performance shows mixed results with strong profitability but concerns over cash flow and leverage.

Positive Factors

Asset Cap Removal

The removal of the asset cap provides Wells Fargo with greater flexibility in capital allocation, enabling potential growth in loans and deposits. This structural change can enhance the bank's competitive position and support long-term expansion.

Credit Performance

Improved credit performance with lower net loan charge-offs indicates strong risk management and financial health. This enhances the bank's ability to maintain profitability and stability over the long term.

Investment Banking Growth

The growth in investment banking fees reflects Wells Fargo's strengthening position in corporate investment banking. This trend supports revenue diversification and long-term growth potential in a competitive sector.

Negative Factors

High Leverage

High leverage can pose risks in volatile markets, potentially straining financial flexibility. This could impact the bank's ability to invest in growth opportunities and manage economic downturns effectively.

Cash Flow Challenges

Negative cash flow indicates inefficiencies in converting income to cash, which can hinder the bank's ability to fund operations and investments. This poses a risk to long-term financial stability and growth.

Declining Revenue Growth

A decline in revenue growth can signal challenges in maintaining market share and competitiveness. This trend may affect the bank's ability to sustain profitability and expand its customer base over time.

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 fees from various financial services. Its main revenue streams include net interest income from a diverse portfolio of loans, including residential mortgages, auto loans, and commercial loans, as well as service fees from deposit accounts, investment services, and wealth management. Additionally, the bank earns income through its capital markets and investment banking services, which include underwriting, advisory, and trading services. Significant partnerships with other financial institutions and technology companies enhance Wells Fargo's capabilities and customer offerings, contributing to its overall earnings. The bank also benefits from its extensive branch network and digital banking services, which help attract and retain customers while driving transaction-based revenue.

Wells Fargo Financial Statement Overview

Summary

Wells Fargo exhibits strong financial performance with consistent revenue and profit growth. The balance sheet is solid with moderate leverage and a healthy equity position. However, there is potential for enhancing net efficiency and liquidity management, and cash flow efficiency could improve.

Income Statement

Wells Fargo demonstrates strong profitability with a consistent revenue growth trend, evidenced by a 1.87% increase in TTM revenue compared to the annual report from 2024. Gross profit and EBIT margins are robust, at 100.38% and 64.35%, respectively, indicating effective cost management. However, the net profit margin of 25.18% suggests room for improvement in net efficiency. Notably, the company has maintained positive revenue growth over the years.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.77, indicating moderate leverage. The equity ratio stands at 9.29%, showing a solid capital base relative to total assets. Return on equity is healthy at 11.04%, indicating efficient use of equity to generate profits. However, the decrease in cash and short-term investments over the TTM period highlights potential liquidity concerns.

Cash Flow

Cash flow analysis reveals a mixed picture. The operating cash flow to net income ratio stands at 0.21, showing some room for improvement in cash conversion efficiency. The free cash flow to net income ratio is also 0.21, suggesting that while free cash flow is positive, cash generation relative to profit is modest. Positive free cash flow growth indicates ongoing operational cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.33B	125.40B	115.34B	83.44B	83.08B	82.23B
Gross Profit	77.62B	77.96B	77.20B	72.83B	83.32B	60.13B
EBITDA	30.90B	30.92B	27.91B	22.46B	37.45B	10.72B
Net Income	20.58B	19.72B	19.14B	13.68B	22.11B	3.38B
Balance Sheet
Total Assets	1.98T	1.93T	1.93T	1.88T	1.95T	1.95T
Cash, Cash Equivalents and Short-Term Investments	379.43B	363.46B	362.61B	272.75B	411.47B	485.00B
Total Debt	364.23B	281.88B	297.15B	226.01B	195.10B	271.95B
Total Liabilities	1.80T	1.75T	1.75T	1.70T	1.76T	1.77T
Stockholders Equity	181.11B	179.12B	185.74B	180.23B	187.61B	184.68B
Cash Flow
Free Cash Flow	-9.14B	3.04B	40.36B	27.05B	-11.53B	2.05B
Operating Cash Flow	-9.14B	3.04B	40.36B	27.05B	-11.53B	2.05B
Investing Cash Flow	-41.62B	-15.65B	16.04B	-42.48B	-7.62B	122.55B
Financing Cash Flow	13.12B	-21.53B	20.49B	-59.65B	-11.24B	-1.24B

Wells Fargo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 84.11 is above the 20-day moving average (MA) of 81.99, above the 50-day MA of 80.47, and above the 200-day MA of 74.90, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.28 is Neutral, 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
HSBC	81 Outperform	241.11B	13.92	12.96%	4.69%	-2.96%	-13.66%
BAC	74 Outperform	382.94B	15.14	9.37%	2.05%	4.95%	20.49%
JPM	74 Outperform	861.83B	16.05	15.84%	1.69%	4.00%	8.73%
SAN	74 Outperform	152.48B	10.64	12.75%	2.26%	-14.74%	17.03%
WFC	72 Outperform	$272.81B	14.52	11.51%	1.96%	0.37%	19.89%
C	70 Outperform	187.13B	15.23	6.65%	2.24%	0.52%	89.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Wells Fargo Corporate Events

Wells Fargo Awards CEO $30M Equity Package

On July 29, 2025, Wells Fargo‘s Board of Directors awarded CEO Charles W. Scharf a one-time equity award valued at approximately $30 million in Restricted Share Rights and 1.046 million Stock Options, vesting over a six-year period. This decision reflects the Board’s intention to retain Mr. Scharf and recognize his leadership in transforming the company, enhancing shareholder value, and achieving significant regulatory milestones. Additionally, the Board plans to appoint Mr. Scharf as Chairman, with a Lead Independent Director to ensure continued independent oversight. These actions are part of a broader strategy to align executive compensation with long-term shareholder value and maintain competitive positioning within the financial industry.

Wells Fargo Reports Strong Q2 2025 Earnings Growth

On July 15, 2025, Wells Fargo reported a net income of $5.5 billion for the second quarter of 2025, translating to $1.60 per diluted share. This reflects an increase from the previous year, driven by efforts to boost fee-based income and growth in both net interest and noninterest income. The company also repurchased $3.0 billion worth of common stock and gained $253 million from acquiring the remaining interest in its merchant services joint venture.

Wells Fargo Amends Certificate for Preferred Stock

On June 17, 2025, Wells Fargo & Company filed a Certificate Eliminating the Certificate of Designations for its 5.875% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series U, with the Delaware Secretary of State. This action effectively removed all matters related to the Series U Preferred from the company’s Restated Certificate of Incorporation, reflecting a strategic decision that could impact the company’s capital structure and shareholder relations.