Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $247.90B
• Dividend Yield: 2.03%
• Average Volume (3M): 20.40M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.02
• Revenue Growth: 3.51%
• EPS Growth: 16.51%
• Country: US
• Employees: 215,367
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Diversified
• EPS (TTM): 1.39
• Shares Outstanding: 3,254,182,400
• 10 Day Avg. Volume: 15,686,652
• 30 Day Avg. Volume: 20,398,663
• PEG Ratio: 3.27
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $78.21
• Price Target Upside: 2.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Wells Fargo's stock is supported by solid financial performance, strong earnings growth, and an attractive valuation. While technical analysis shows mixed signals, and there are challenges in cash flow efficiency and economic uncertainties, the company's strategic progress and robust balance sheet position it well in the diversified banking industry.

Positive Factors

Financial outlook

Potential asset-cap removal is seen as a significant driver of Net Interest Income, contributing positively to the company's financial outlook.

Investment growth

Superior growth runway across corporate lending, capital markets, wealth, and credit cards where management has undertaken significant investments.

Regulatory progress

The CFPB terminated its 2018 consent order related to the company's compliance and risk management programs, paving the way for the Fed to act.

Negative Factors

Asset growth limitations

Wells Fargo has limited capacity to grow assets due to an asset cap imposed by the Federal Reserve.

Interest income challenges

NII fell 6% YoY from lower rates and loan balances, as NIMs fell by 14bps YoY and loans dipped 3% YoY.

Regulatory uncertainty

Uncertainty around regulatory risks persists, with Wells Fargo under several active consent orders.

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 shows strong financial performance with consistent revenue growth and profitability margins. The balance sheet is solid, but liquidity management and cash conversion efficiency need attention.

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
79.42B	77.96B	77.20B	73.78B	78.49B	72.34B
	Gross Profit
80.49B	77.96B	82.60B	73.78B	78.49B	72.34B
	EBIT
31.90B	28.49B	28.67B	14.97B	28.85B	4.04B
	EBITDA
12.84B	24.00B	27.91B	22.28B	37.31B	0.00
	Net Income Common Stockholders
20.00B	19.72B	19.14B	13.68B	22.11B	1.79B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.26B	142.41B	316.46B	272.75B	411.47B	485.00B
	Total Assets
1.95T	1.93T	1.93T	1.88T	1.95T	1.96T
	Total Debt
188.61B	186.65B	219.47B	226.01B	195.10B	271.95B
	Net Debt
104.52B	-16.71B	-17.75B	66.86B	-39.13B	7.34B
	Total Liabilities
1.77T	1.75T	1.75T	1.70T	1.76T	1.77T
	Stockholders Equity
181.09B	179.12B	185.74B	179.89B	187.61B	184.89B
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: 76.06
• 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 76.06 is above the 20-day moving average (MA) of 72.34, above the 50-day MA of 69.62, and above the 200-day MA of 67.01, indicating a bullish trend. The MACD of 2.08 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 86.01 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
JPM	82 Outperform	$743.57B	13.13	17.25%	1.89%	12.48%	23.05%
HSBC	80 Outperform	$206.83B	10.87	10.83%	5.57%	-1.91%	-6.79%
WFC	78 Outperform	$247.90B	13.69	11.05%	2.03%	3.51%	16.51%
BAC	73 Outperform	$336.60B	13.34	9.46%	2.28%	8.23%	16.15%
MUFG	65 Neutral	$151.75B	12.90	9.18%	1.74%	13.21%	-12.06%
C	64 Neutral	$141.42B	11.96	6.30%	2.92%	2.97%	87.82%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%

Wells Fargo Corporate Events

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.

Spark’s Take on WFC Stock

According to Spark, TipRanks’ AI Analyst, WFC is a Outperform.

Wells Fargo’s stock is supported by solid financial performance, strong earnings growth, and an attractive valuation. While technical analysis shows mixed signals, and there are challenges in cash flow efficiency and economic uncertainties, the company’s strategic progress and robust balance sheet position it well in the diversified banking industry.

To see Spark’s full report on WFC stock, click here.

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.

Spark’s Take on WFC Stock

According to Spark, TipRanks’ AI Analyst, WFC is a Outperform.

Wells Fargo’s stock score reflects strong profitability and revenue stability, supported by robust margins and improved leverage ratios. While the technical indicators show mixed signals, the stock’s valuation remains appealing. The positive earnings call and corporate events, including leadership transitions and strong financial performance, further solidify the company’s position. However, potential risks in cash flow management and certain business segments should be monitored closely.

To see Spark’s full report on WFC stock, click here.