We've been asking ourselves recently if the market has placed a fair valuation on Wells Fargo &. Let's dive into some of the fundamental values of this Large-Cap Finance company to determine if there might be an opportunity here for value-minded investors.
Wells Fargo & Is a Speculative Stock:
Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, Wells Fargo & has a trailing 12 month P/E ratio of 13.4 and a P/B ratio of 1.53.
Wells Fargo & has moved 49.2% over the last year compared to 20.3% for the S&P 500 — a difference of 29.0%. Wells Fargo & has a 52 week high of $84.83 and a 52 week low of $50.15.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $85,063 | $47,919 | $39,694 | $54,024 | $85,118 | $90,777 |
| Interest Income (M) | $47,303 | $39,956 | $35,779 | $44,950 | $52,375 | $47,676 |
| Operating Margins | 31% | 5% | 74% | 28% | 25% | 26% |
| Net Margins | 23% | 7% | 56% | 25% | 22% | 22% |
| Net Income (M) | $19,715 | $3,377 | $22,109 | $13,677 | $19,142 | $19,722 |
| Depreciation & Amort. (M) | $6,573 | $8,219 | $7,890 | $6,832 | $6,271 | $1,400 |
| Diluted Shares (M) | 4,425 | 4,134 | 4,096 | 3,837 | 3,720 | 3,468 |
| Earnings Per Share | $4.09 | $0.43 | $5.08 | $3.27 | $4.83 | $5.37 |
| EPS Growth | n/a | -89.49% | 1081.4% | -35.63% | 47.71% | 11.18% |
| Avg. Price | $43.82 | $28.03 | $42.08 | $46.8 | $44.47 | $77.78 |
| P/E Ratio | 10.64 | 65.19 | 8.2 | 14.18 | 9.11 | 14.32 |
| Free Cash Flow (M) | $6,730 | $2,051 | -$11,525 | $27,048 | $40,358 | $3,035 |
| EV / EBITDA | 8.8 | 5.9 | 2.68 | 8.65 | 5.03 | 10.07 |
| Total Debt (M) | $228,191 | $212,950 | $160,689 | $174,870 | $207,588 | $173,078 |
| Net Debt / EBITDA | 2.67 | -4.82 | -1.96 | 0.7 | -1.02 | -1.16 |
