Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $278.60B
• Dividend Yield: 1.92%
• Average Volume (3M): 14.77M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.09
• Revenue Growth: -4.18%
• EPS Growth: 26.41%
• Country: US
• Employees: 215,367
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.66
• Shares Outstanding: 3,203,441,200
• 10 Day Avg. Volume: 15,362,461
• 30 Day Avg. Volume: 14,769,712
• PEG Ratio: 1.08
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 79.29
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 5.40
• Enterprise Value/Gross Profit: 8.38
• Enterprise Value/Ebitda: 21.94
• 1Y Price Target: $94.23
• Price Target Upside: 8.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: $98.00 ▲(12.68% Upside)

Wells Fargo's strong financial performance, particularly in profitability and strategic growth initiatives, drives the stock's positive outlook. The technical indicators support a bullish trend, while the valuation is moderate. The earnings call highlighted significant growth opportunities, although financial risks related to leverage and cash flow management remain concerns.

Positive Factors

Investment Banking Growth

The significant growth in investment banking fees indicates a strong position in capital markets, enhancing revenue diversification and supporting long-term financial stability.

Lifting of Asset Cap

Removing the asset cap enables Wells Fargo to expand its balance sheet and pursue strategic growth opportunities, potentially increasing market share and profitability.

Efficiency Initiatives

Cost reduction efforts improve operational efficiency, enhancing profit margins and positioning the company for sustainable growth despite a challenging economic environment.

Negative Factors

Rising Debt Levels

Higher leverage can increase financial risk, especially if interest rates rise, potentially impacting cash flow and limiting future investment capabilities.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives without external financing.

Commercial Real Estate Challenges

Declining commercial real estate revenue reflects sector-specific challenges that could pressure overall revenue growth and profitability in the medium term.

Wells Fargo Business Overview & Revenue Model

Company Description

Wells Fargo & Company (WFC) is a diversified financial services company headquartered in San Francisco, California. It operates in various sectors, including banking, investment, mortgage, and consumer and commercial finance. Wells Fargo provides a wide range of services such as personal banking, small business banking, corporate banking, asset management, and investment advisory services, catering to millions of customers across the United States and internationally.

How the Company Makes Money

Wells Fargo generates revenue primarily through interest income from loans and fees from various financial services. Its main revenue streams include net interest income from a diverse portfolio of loans, including residential mortgages, auto loans, and commercial loans, as well as service fees from deposit accounts, investment services, and wealth management. Additionally, the bank earns income through its capital markets and investment banking services, which include underwriting, advisory, and trading services. Significant partnerships with other financial institutions and technology companies enhance Wells Fargo's capabilities and customer offerings, contributing to its overall earnings. The bank also benefits from its extensive branch network and digital banking services, which help attract and retain customers while driving transaction-based revenue.

Wells Fargo Financial Statement Overview

Summary

Wells Fargo's financial performance is mixed. Strong profitability is evident with a healthy gross profit margin and net profit margin. However, declining revenue growth and high leverage pose risks, and cash flow challenges are notable with negative operating and free cash flow.

Income Statement

Wells Fargo's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy gross profit margin of 63.45% and a net profit margin of 16.82%, reflecting strong profitability. EBIT and EBITDA margins are stable, indicating efficient operations. The recent decline in revenue growth is a potential risk, but overall profitability remains robust.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.01, indicating significant leverage, which could pose a risk in volatile markets. However, the return on equity is strong at 11.36%, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure. While leverage is high, the company's ability to generate returns on equity is a positive sign.

Cash Flow

Cash flow analysis shows challenges, with negative operating and free cash flow in the TTM period. The free cash flow growth rate is significantly negative, indicating cash flow issues. The operating cash flow to net income ratio is also negative, suggesting inefficiencies in converting income to cash. Despite these challenges, the free cash flow to net income ratio remains stable at 1.0, indicating that cash flow issues may be temporary.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.56B	125.40B	115.34B	83.44B	83.08B	82.23B
Gross Profit	79.07B	77.96B	77.20B	72.83B	83.32B	60.13B
EBITDA	30.19B	30.92B	27.91B	22.46B	37.45B	10.72B
Net Income	21.06B	19.72B	19.14B	13.68B	22.11B	3.38B
Balance Sheet
Total Assets	2.06T	1.93T	1.93T	1.88T	1.95T	1.95T
Cash, Cash Equivalents and Short-Term Investments	486.13B	363.46B	362.61B	272.75B	411.47B	485.00B
Total Debt	408.42B	281.88B	297.15B	226.01B	195.10B	271.95B
Total Liabilities	1.88T	1.75T	1.75T	1.70T	1.76T	1.77T
Stockholders Equity	181.15B	179.12B	185.74B	180.23B	187.61B	184.68B
Cash Flow
Free Cash Flow	-14.22B	3.04B	40.36B	27.05B	-11.53B	2.05B
Operating Cash Flow	-14.22B	3.04B	40.36B	27.05B	-11.53B	2.05B
Investing Cash Flow	-103.39B	-15.65B	16.04B	-42.48B	-7.62B	122.55B
Financing Cash Flow	106.00B	-21.53B	20.49B	-59.65B	-11.24B	-1.24B

Wells Fargo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 86.97 is above the 20-day moving average (MA) of 83.73, above the 50-day MA of 82.70, and above the 200-day MA of 76.70, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 77.52 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	―	$240.29B	14.79	8.66%	4.68%	-9.54%	-22.46%
WFC	―	$278.60B	14.32	11.56%	1.92%	-4.18%	26.41%
SAN	―	$151.15B	10.54	12.85%	2.54%	-14.74%	17.03%
BAC	―	$395.90B	14.57	9.87%	2.02%	-0.27%	33.84%
JPM	―	$855.50B	15.41	16.35%	1.78%	1.95%	12.32%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
C	―	$186.35B	14.23	6.88%	2.29%	-0.63%	105.57%

Wells Fargo Corporate Events

Wells Fargo’s Strong Q3 2025 Performance and Strategic Moves

Wells Fargo & Company is a leading financial services firm offering a wide range of banking, investment, and mortgage products, primarily operating in the financial sector. The company is recognized for its extensive network and comprehensive financial services.

Wells Fargo’s Earnings Call Highlights Growth and Challenges

Wells Fargo’s recent earnings call conveyed a positive sentiment, highlighting robust financial performance and strategic growth opportunities. The company is poised for expansion following the lifting of the asset cap, despite facing challenges in commercial real estate and severance-related expenses.

Wells Fargo Announces Q3 2025 Financial Results

On October 14, 2025, Wells Fargo announced its third-quarter financial results, reporting a net income of $5.6 billion, or $1.66 per diluted share. The company experienced an increase in total revenue to $21.4 billion compared to the previous year. Notable changes included a restructuring of business segments and a significant share repurchase program. Additionally, Charlie Scharf was appointed as Chairman of the Board, with Steven Black named as Lead Independent Director, signaling strategic leadership changes.

The most recent analyst rating on (WFC) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.