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Wells Fargo & Co WFC

Morningstar Rating
$59.56 +0.38 (0.63%)
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Company Report

Wells Fargo Earnings: Shares Tumble 6% on Updated Expense Guidance; Trading Revenue Still Strong

Wide-moat-rated Wells Fargo reported second-quarter EPS of $1.33 per share which compares with $1.25 per share in the same quarter of the previous year. Shares of the bank tumbled around 6% on the news of the updated 2024 expense guidance, which was a slight disappointment given the importance of controlling expenses for the bank. Trading revenue came in quite strong at $1.4 billion, which was an near all-time high for the bank. The second-quarter numbers resulted in a return on tangible equity of 13.7%, still below the management’s medium-term target of 15%. We do not plan to materially change our $58 fair value estimate for Wells Fargo as we fully incorporate second-quarter results.

Price vs Fair Value

WFC is trading at a 500% premium.
Price
$59.14
Fair Value
$68.00
Uncertainty
Medium
1-Star Price
$59.80
5-Star Price
$69.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Wells should have several years left of slower expense growth, while a big regulatory catalyst—the lifting of the asset cap—remains.

Bears

Wells Fargo still has consent orders outstanding, including the asset cap, and has been on defense for years, raising the potential for structural damage to its competitive positioning.

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News

Trading Information

Previous Close Price
$59.18
Day Range
$59.0459.90
52-Week Range
$38.3962.55
Bid/Ask
$59.55 / $59.56
Market Cap
$202.53 Bil
Volume/Avg
1.1 Mil / 17.8 Mil

Key Statistics

Price/Earnings (Normalized)
11.39
Price/Sales
2.57
Dividend Yield (Trailing)
2.37%
Dividend Yield (Forward)
2.37%
Total Yield
9.24%

Company Profile

Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company has four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
226,000

Competitors

Valuation

Metric
WFC
C
BAC
Price/Earnings (Normalized)
11.3913.2214.17
Price/Book Value
1.260.651.23
Price/Sales
2.571.573.44
Price/Cash Flow
7.674.569.18
Price/Earnings
WFC
C
BAC

Financial Strength

Metric
WFC
C
BAC
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
WFC
C
BAC
Return on Assets (Normalized)
1.00%0.37%0.92%
Return on Equity (Normalized)
11.72%4.74%11.28%
Return on Invested Capital (Normalized)
Return on Assets
WFC
C
BAC
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