Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $258.71B
• Dividend Yield: 2.01%
• Average Volume (3M): 15.30M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.05
• Revenue Growth: 3.51%
• EPS Growth: 16.51%
• Country: US
• Employees: 215,367
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Diversified
• EPS (TTM): 1.39
• Shares Outstanding: 3,254,182,400
• 10 Day Avg. Volume: 18,988,748
• 30 Day Avg. Volume: 15,302,102
• PEG Ratio: 3.36
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.51
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.93
• Enterprise Value/Ebitda: 3.21
• 1Y Price Target: $82.79
• Price Target Upside: 3.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $85.00 ▲(6.09%Upside)

Wells Fargo's overall stock score is bolstered by strong financial performance and positive technical indicators. While valuation metrics are reasonable, economic uncertainties and regulatory changes pose challenges. The company's strategic initiatives and robust credit performance contribute positively to its outlook.

Positive Factors

Earnings and Growth Potential

Analyst reiterates a Buy rating and raises the price objective to $90, indicating confidence in Wells Fargo's future growth.

Investor Sentiment

There is potential for a new pool of investors who were previously fatigued by regulatory overhang to invest in Wells Fargo due to its unique growth story and potential for efficiency gains.

Regulatory Changes

The Federal Reserve lifted Wells Fargo's asset cap, allowing the bank to accelerate growth and achieve peer-leading ROTCE and operating efficiency.

Negative Factors

Market Share Recovery

Wells Fargo is entering a competitive market as it seeks to regain lost deposit market share and funding for growth in several business areas.

Regulatory and Legal Pressures

Despite improvements, Wells Fargo still faces a challenge to completely overcome the economic and reputational consequences associated with legacy issues.

Wells Fargo Business Overview & Revenue Model

Company Description

Wells Fargo & Company is a diversified, community-based financial services company with a significant presence in the United States. It operates in three primary business segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The company offers a wide array of financial products and services, including consumer banking, corporate banking, investment banking, mortgage lending, and asset management. As one of the largest banks in the U.S., Wells Fargo serves millions of customers through a vast network of branches, ATMs, and digital platforms.

How the Company Makes Money

Wells Fargo makes money through various revenue streams primarily from its extensive range of financial services and products. The company's primary sources of revenue include interest income from loans and credit products, such as mortgages, personal loans, and credit cards. Additionally, it earns fees from non-interest income sources like banking services, wealth and investment management, and transaction processing. Another significant contributor to its revenue is its wholesale banking operations, which provide services to businesses, governments, and institutions. Cross-selling of products and services to its existing customer base also plays a crucial role in its earnings. The company's partnerships with fintech firms and technology investments enhance its digital offerings, contributing to customer acquisition and retention, which in turn supports its revenue growth.

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, liquidity management and cash conversion efficiency could be improved.

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	123.55B	125.40B	115.34B	83.44B	83.08B	82.23B
Gross Profit	77.25B	77.96B	77.20B	72.83B	83.32B	60.13B
EBITDA	30.70B	30.92B	27.91B	22.46B	37.45B	10.72B
Net Income	20.00B	19.72B	19.14B	13.68B	22.11B	3.38B
Balance Sheet
Total Assets	1.95T	1.93T	1.93T	1.88T	1.95T	1.95T
Cash, Cash Equivalents and Short-Term Investments	352.31B	363.46B	362.61B	272.75B	411.47B	485.00B
Total Debt	313.44B	281.88B	297.15B	226.01B	195.10B	271.95B
Total Liabilities	1.77T	1.75T	1.75T	1.70T	1.76T	1.77T
Stockholders Equity	181.09B	179.12B	185.74B	180.23B	187.61B	184.68B
Cash Flow
Free Cash Flow	4.12B	3.04B	40.36B	27.05B	-11.53B	2.05B
Operating Cash Flow	4.12B	3.04B	40.36B	27.05B	-11.53B	2.05B
Investing Cash Flow	-64.25B	-15.65B	16.04B	-42.48B	-7.62B	122.55B
Financing Cash Flow	-32.29B	-21.53B	20.49B	-59.65B	-11.24B	-1.24B

Wells Fargo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 80.12 is above the 20-day moving average (MA) of 75.99, above the 50-day MA of 73.73, and above the 200-day MA of 69.99, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 92.98 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
BAC	81 Outperform	$354.90B	14.07	9.46%	2.21%	8.23%	16.15%
HSBC	80 Outperform	$212.07B	11.24	10.83%	3.25%	-1.91%	-6.79%
JPM	78 Outperform	$797.91B	14.09	17.25%	1.95%	12.41%	23.05%
WFC	76 Outperform	$258.71B	14.28	11.05%	2.01%	3.51%	16.51%
C	76 Outperform	$157.60B	13.33	6.30%	2.65%	2.97%	87.82%
MUFG	76 Outperform	$156.11B	13.23	9.18%	1.93%	5.39%	20.82%
Sector *	67 Neutral	$16.67B	11.46	9.71%	3.91%	11.61%	-9.60%

Wells Fargo Corporate Events

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.

The most recent analyst rating on (WFC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo’s Asset Cap Lifted by Federal Reserve

On June 3, 2025, Wells Fargo announced that the Federal Reserve has lifted the asset growth limits imposed on the company under a 2018 consent order. This decision followed comprehensive improvements in board effectiveness and operational risk programs, verified by independent and Federal Reserve reviews. The lifting of the asset cap is seen as a pivotal milestone in Wells Fargo’s transformation journey, with CEO Charlie Scharf highlighting the company’s strengthened position and future growth plans. In recognition of the employees’ contributions to this achievement, Wells Fargo is awarding a special $2,000 stock grant to all full-time employees.

The most recent analyst rating on (WFC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo Announces Redemption of Capital Securities

On May 30, 2025, Wells Fargo & Company and Wells Fargo Bank announced the redemption of capital securities issued by CoreStates Capital II and CoreStates Capital III, with the redemption date set for June 30, 2025. This move will result in no outstanding capital securities for these trusts, potentially impacting the company’s financial structure and signaling a strategic shift in managing its capital resources.

The most recent analyst rating on (WFC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo Announces Redemption of Preferred Stock

On May 14, 2025, Wells Fargo announced the redemption of all 80,000 outstanding shares of its 5.875% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series U, and the related depositary shares, effective June 16, 2025. This move will result in no remaining shares of the Series U Preferred Stock or Depositary Shares, impacting the company’s financial structure and potentially affecting stakeholders involved with these securities.

The most recent analyst rating on (WFC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo Reports Strong Q1 2025 Earnings Growth

Wells Fargo reported a net income of $4.9 billion, or $1.39 per diluted share, for the first quarter of 2025, reflecting a 16% increase in diluted earnings per share from the previous year. The company also repurchased 44.5 million shares of common stock and noted gains from the sale of a segment of its commercial mortgage servicing business, as well as tax benefits, despite some losses on debt securities.