Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $262.42B
• Dividend Yield: 1.99%
• Average Volume (3M): 18.55M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.06
• Revenue Growth: 0.22%
• EPS Growth: 19.89%
• Country: US
• Employees: 215,367
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Diversified
• EPS (TTM): 1.60
• Shares Outstanding: 3,254,182,400
• 10 Day Avg. Volume: 22,730,037
• 30 Day Avg. Volume: 18,552,401
• PEG Ratio: 2.76
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 62.07
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 7.58
• Enterprise Value/Ebitda: 4.94
• 1Y Price Target: $86.93
• Price Target Upside: 8.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 78 Outperform
• Price Target: $90.00 ▲(12.11%Upside)

Wells Fargo's overall score is driven by positive earnings call sentiment and significant corporate events like the asset cap removal. Strong financial performance supports the score, though technical indicators suggest a need for cautious optimism due to neutral RSI. The fair valuation and moderate dividend yield provide a stable investment case.

Positive Factors

Asset Cap Removal

The Federal Reserve removed the asset cap component of its 2018 consent order, which was the key limiting factor on WFC's ability to grow.

Financial Stability

Wells Fargo has solid credit quality and strong capital ratios, indicating financial stability.

Growth Opportunities

Excess capital is likely to be used to fund organic growth initiatives as well as share buybacks, which could drive positive revisions.

Negative Factors

Credit Card Loan Growth

Credit card loan growth slowed extremely sharply compared to previous double-digit growth rates.

Net Interest Income Guidance

The lowered net interest income guidance contributed to the stock's underperformance.

Stock Performance

The stock sell-off reflects investor positioning rather than company fundamentals.

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 robust profitability margins. The balance sheet is solid with moderate leverage, though liquidity management could be optimized. Cash flows are stable, but efficiency in converting income to cash 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.40B	115.34B	83.44B	83.08B	82.23B
Gross Profit	77.96B	77.20B	72.83B	83.32B	60.13B
EBITDA	30.92B	27.91B	22.46B	37.45B	10.72B
Net Income	19.72B	19.14B	13.68B	22.11B	3.38B
Balance Sheet
Total Assets	1.93T	1.93T	1.88T	1.95T	1.95T
Cash, Cash Equivalents and Short-Term Investments	363.46B	362.61B	272.75B	411.47B	485.00B
Total Debt	281.88B	297.15B	226.01B	195.10B	271.95B
Total Liabilities	1.75T	1.75T	1.70T	1.76T	1.77T
Stockholders Equity	179.12B	185.74B	180.23B	187.61B	184.68B
Cash Flow
Free Cash Flow	3.04B	40.36B	27.05B	-11.53B	2.05B
Operating Cash Flow	3.04B	40.36B	27.05B	-11.53B	2.05B
Investing Cash Flow	-15.65B	16.04B	-42.48B	-7.62B	122.55B
Financing Cash Flow	-21.53B	20.49B	-59.65B	-11.24B	-1.24B

Wells Fargo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 80.28 is below the 20-day moving average (MA) of 80.73, above the 50-day MA of 77.06, and above the 200-day MA of 71.93, indicating a neutral trend. The MACD of 1.18 indicates Positive momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 42.77 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	80 Outperform	$219.26B	11.60	10.83%	7.59%	-1.91%	-6.79%
WFC	78 Outperform	$262.42B	13.82	11.51%	1.99%	0.22%	19.89%
MUFG	76 Outperform	$150.87B	12.66	9.18%	2.64%	5.39%	20.82%
JPM	74 Outperform	$809.47B	14.94	16.13%	2.22%	4.04%	8.73%
C	73 Outperform	$174.54B	13.82	6.64%	2.42%	0.52%	89.25%
BAC	73 Outperform	$356.41B	13.87	9.46%	2.70%	3.21%	20.49%
Sector *	68 Neutral	$16.89B	11.69	9.78%	3.90%	11.76%	-7.55%

Wells Fargo Corporate Events

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.

The most recent analyst rating on (WFC) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

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.