Wells Fargo & Co. (WFC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Regions Financial Corp.

U.S. Bancorp

Credicorp Ltd.

Capital One Financial Corp.

JPMorgan Chase & Co.

Citigroup, Inc.

Bank of America Corp.

Wells Fargo & Co.

The PNC Financial Services Group, Inc.

Citizens Financial Group, Inc. (Rhode Island)

Huntington Bancshares, Inc.

Why is Wells Fargo & Co. ?

Positive results in Jun 25

ROCE(HY) Highest at 1.05%
DIVIDEND PER SHARE(HY) Highest at USD 0
GROSS NPA (%)(Q) Lowest at 0.84%

With ROA of 0.70%, it has a fair valuation with a 2.04 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 29.32%, its profits have risen by 9.2% ; the PEG ratio of the company is 1

Market Beating performance in long term as well as near term

Along with generating 29.32% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wells Fargo & Co. should be less than 10%
Overall Portfolio exposure to Major Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Major Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wells Fargo & Co. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Wells Fargo & Co.

10.95%

2.06

29.07%

S&P 500

17.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.81%

EBIT Growth (5y)

11.41%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

27.16%

Pledged Shares

Institutional Holding

79.60%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.28

EV to EBIT

24.35

EV to EBITDA

18.67

EV to Capital Employed

2.02

EV to Sales

5.29

PEG Ratio

0.95

Dividend Yield

0.88%

ROCE (Latest)

8.30%

ROE (Latest)

11.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

NII(Q)

Highest at USD 12,331 MM

CASH AND EQV(HY)

Highest at USD 73,983 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 69.15%

NET SALES(Q)

Highest at USD 22,602 MM

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 28,534 MM

Here's what is working for Wells Fargo & Co.

NII

Highest at USD 12,331 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 22,602 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 73,983 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Credit Deposit Ratio

Highest at 69.15%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Here's what is not working for Wells Fargo & Co.

Operating Cash Flow

Lowest at USD 28,534 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Capital Adequacy Ratio

Lowest at 11.9%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)