Wells Fargo (WFC)
Financials · $256B market cap · SEC CIK 0000072971
ahead of 47% of the S&P 500 · #48 of 76 in Financials
Next reports on Jan 14, 2027, after the close, with analysts expecting $1.88 in earnings per share.
52-week range $72.78 to $97.76. 12% below its 52-week high and 18% above its low.
The case for WFC
- Cheap for its growth: 11.2× earnings, where 10%+ a year of growth plus a 2.3% dividend would justify about 26×.
- 22% of revenue drops through to net profit.
- Pays a modest 2.3% dividend.
The case against
- Revenue has shrunk 1.7% a year over five years.
- Weakest against its peers: return on equity of 13% is lower than 62% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 75 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 31 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 58 |
| Momentumhow the price has behaved lately | 47 |
| Stabilityhow violently it moves, what it owes and what it pays you | 68 |
- Its one-year revenue change (+73%) is far out of line with its five-year trend (−2% a year). In the Financials sector that is usually interest income swinging with rates rather than growth, so only the five-year figure is used.
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? No, flat
| Last 12 months | +72.7%* |
|---|---|
| Over 5 years | −1.7% a year |
| FY2025 revenue | $83.7B (+2%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? Yes, improving
| Gross margin | n/a |
|---|---|
| Operating margin | 25% |
| Net margin, FY24 → FY25 | 24.0% → 25.5% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $173B |
|---|---|
| Long-term debt | $175B |
| Net debt | $2.1B |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 11.2× |
|---|---|
| Fair P/E for its growth | 26× |
| Price / book | 1.37× |
| Fair P/B for its ROE | 1.3× |
| Forward P/E | 10.5× |
At 11.2× earnings it trades well below the 26× that 10%+ a year of growth plus a 2.3% dividend would justify. At 1.37× book it trades close to the 1.3× that its 13% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from Wells Fargo's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $83.7B | $82.3B | $82.6B | $74.4B | $79.2B |
| Change on the year | +2% | 0% | +11% | −6% | — |
| Profit margins | |||||
| Net margin | 25.5% | 24.0% | 23.2% | 18.4% | 27.9% |
| Debt vs. cash | |||||
| Cash | $173B | $202B | $236B | $159B | $234B |
| Long-term debt | $175B | $173B | $208B | $175B | $161B |
| Net cash (debt) | −$2.1B | $28.8B | $28.5B | −$15.7B | $73.5B |
What Wells Fargo says it does
Wells Fargo & Company is a corporation organized under the laws of Delaware and a financial holding company and a bank holding company registered under the Bank Holding Company Act of 1956, as amended (BHC Act). Its principal business is to act as a holding company for its subsidiaries. References in this report to “the Parent” mean the holding company. References to “we,” “our,” “us” or “the Company” mean the holding company and its subsidiaries that are consolidated for financial reporting purposes. At December 31, 2025, we had assets of approximately $2.1 trillion, loans of $986.2 billion, deposits of $1.4 trillion and stockholders’ equity of $181.1 billion. Based on assets, we were the fourth largest bank holding company in the United States. At December 31, 2025, Wells Fargo Bank, N.A. (the Bank) was the Company’s principal subsidiary with assets of $1.8 trillion, or 85% of the Company’s assets. Our annual reports on Form 10-K,…
Risk factors WFC lists in its 10-K
- Consent Orders and Other Regulatory Actions
- Federal Reserve Board Consent Order Regarding Governance Oversight and Compliance and Operational Risk Management
- Formal Agreement with the OCC Regarding Anti-Money Laundering and Sanctions Risk Management Practices
- Parent Bank Holding Company Activities
- Transfer of Funds from Subsidiary Banks
- Liability of Commonly Controlled Institutions
- Enhanced supervision and regulation of systemically important firms
- Regulatory Capital, Leverage and Liquidity Requirements
- “Living Will” Requirements and Related Matters
- Dividend and Share Repurchase Restrictions
- Privacy Provisions and the Sharing of Personal Financial Data
- Regulation of Consumer Financial Products
- Regulation of Swaps and Other Derivatives Activities