Switch to:
Also traded in: Argentina, Brazil, Chile, Germany, Mexico, Switzerland, UK

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash-to-Debt 0.06
WFC's Cash-to-Debt is ranked lower than
97% of the 1495 Companies
in the Global Banks - Global industry.

( Industry Median: 1.97 vs. WFC: 0.06 )
Ranked among companies with meaningful Cash-to-Debt only.
WFC' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.06  Med: 0.13 Max: 0.35
Current: 0.06
0.06
0.35
Equity-to-Asset 0.10
WFC's Equity-to-Asset is ranked higher than
51% of the 1496 Companies
in the Global Banks - Global industry.

( Industry Median: 0.10 vs. WFC: 0.10 )
Ranked among companies with meaningful Equity-to-Asset only.
WFC' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.08  Med: 0.1 Max: 0.11
Current: 0.1
0.08
0.11
Interest Coverage 5.44
WFC's Interest Coverage is ranked higher than
82% of the 1758 Companies
in the Global Banks - Global industry.

( Industry Median: 1.61 vs. WFC: 5.44 )
Ranked among companies with meaningful Interest Coverage only.
WFC' s Interest Coverage Range Over the Past 10 Years
Min: 0.33  Med: 4.5 Max: 8.46
Current: 5.44
0.33
8.46
Beneish M-Score: -2.36
WACC vs ROIC
5.29%
4.19%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating Margin % 36.39
WFC's Operating Margin % is ranked higher than
65% of the 1511 Companies
in the Global Banks - Global industry.

( Industry Median: 30.68 vs. WFC: 36.39 )
Ranked among companies with meaningful Operating Margin % only.
WFC' s Operating Margin % Range Over the Past 10 Years
Min: 7.77  Med: 31.3 Max: 40.21
Current: 36.39
7.77
40.21
Net Margin % 24.85
WFC's Net Margin % is ranked higher than
60% of the 1510 Companies
in the Global Banks - Global industry.

( Industry Median: 21.91 vs. WFC: 24.85 )
Ranked among companies with meaningful Net Margin % only.
WFC' s Net Margin % Range Over the Past 10 Years
Min: 6.34  Med: 21.2 Max: 27.34
Current: 24.85
6.34
27.34
ROE % 10.24
WFC's ROE % is ranked higher than
67% of the 1509 Companies
in the Global Banks - Global industry.

( Industry Median: 8.30 vs. WFC: 10.24 )
Ranked among companies with meaningful ROE % only.
WFC' s ROE % Range Over the Past 10 Years
Min: 3.23  Med: 11.33 Max: 17.23
Current: 10.24
3.23
17.23
ROA % 1.17
WFC's ROA % is ranked higher than
72% of the 1518 Companies
in the Global Banks - Global industry.

( Industry Median: 0.87 vs. WFC: 1.17 )
Ranked among companies with meaningful ROA % only.
WFC' s ROA % Range Over the Past 10 Years
Min: 0.28  Med: 1.28 Max: 1.52
Current: 1.17
0.28
1.52
3-Year Revenue Growth Rate 3.50
WFC's 3-Year Revenue Growth Rate is ranked lower than
52% of the 1316 Companies
in the Global Banks - Global industry.

( Industry Median: 3.90 vs. WFC: 3.50 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
WFC' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -6.1  Med: 7.8 Max: 22.9
Current: 3.5
-6.1
22.9
3-Year EBITDA Growth Rate 2.80
WFC's 3-Year EBITDA Growth Rate is ranked lower than
62% of the 1228 Companies
in the Global Banks - Global industry.

( Industry Median: 6.20 vs. WFC: 2.80 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
WFC' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -31.9  Med: 8.6 Max: 49.5
Current: 2.8
-31.9
49.5
3-Year EPS without NRI Growth Rate 0.80
WFC's 3-Year EPS without NRI Growth Rate is ranked lower than
70% of the 1184 Companies
in the Global Banks - Global industry.

( Industry Median: 7.30 vs. WFC: 0.80 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
WFC' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -32.2  Med: 13.2 Max: 59.1
Current: 0.8
-32.2
59.1
GuruFocus has detected 4 Warning Signs with Wells Fargo & Co $WFC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» WFC's 10-Y Financials

Financials (Next Earnings Date: 2017-04-13)


Revenue & Net Income
Equity & Asset
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q1 2016

WFC Guru Trades in Q1 2016

David Dreman 43,523 sh (New)
Paul Tudor Jones 45,850 sh (New)
Jim Simons 1,411,162 sh (+3067.16%)
Joel Greenblatt 127,951 sh (+1730.22%)
Diamond Hill Capital 4,054,050 sh (+115.49%)
Murray Stahl 6,971 sh (+65.58%)
PRIMECAP Management 18,501,167 sh (+20.52%)
Sarah Ketterer 2,060,977 sh (+4.47%)
Mairs and Power 2,839,536 sh (+2.69%)
Scott Black 46,262 sh (+2.07%)
Wallace Weitz 1,207,587 sh (+1.78%)
Manning & Napier Advisors, Inc 397,159 sh (+1.63%)
Ken Fisher 19,102,039 sh (+0.58%)
Donald Yacktman 2,124,932 sh (+0.30%)
Yacktman Fund 1,700,000 sh (unchged)
Jerome Dodson 250,000 sh (unchged)
First Eagle Investment 1,800 sh (unchged)
Charlie Munger 1,591,800 sh (unchged)
Third Avenue Management 41,637 sh (unchged)
Prem Watsa 69,300 sh (unchged)
Jeff Auxier 4,460 sh (unchged)
David Abrams 2,770,000 sh (unchged)
Warren Buffett 479,704,270 sh (unchged)
Paul Tudor Jones 114,200 sh (unchged)
Paul Tudor Jones 101,500 sh (unchged)
John Hussman Sold Out
George Soros Sold Out
RS Investment Management 757,809 sh (-0.16%)
Tom Russo 14,692,910 sh (-0.19%)
Charles Brandes 2,467,937 sh (-0.65%)
Tweedy Browne 4,630,560 sh (-0.75%)
T Rowe Price Equity Income Fund 5,255,300 sh (-1.31%)
Mario Gabelli 3,537,728 sh (-1.82%)
Bill Nygren 5,170,000 sh (-2.27%)
HOTCHKIS & WILEY 3,810,128 sh (-2.69%)
Dodge & Cox 67,922,588 sh (-2.85%)
NWQ Managers 1,764,084 sh (-2.95%)
Jeremy Grantham 1,346,615 sh (-3.03%)
Arnold Van Den Berg 505,414 sh (-3.15%)
Barrow, Hanley, Mewhinney & Strauss 38,709,355 sh (-3.34%)
Lou Simpson 6,202,092 sh (-3.86%)
John Buckingham 110,058 sh (-4.11%)
Richard Pzena 1,592,870 sh (-4.94%)
Chris Davis 23,933,513 sh (-7.18%)
Pioneer Investments 5,054,736 sh (-11.99%)
Ruane Cunniff 92,300 sh (-36.21%)
» More
Q2 2016

WFC Guru Trades in Q2 2016

Ruane Cunniff 5,242,602 sh (+5579.96%)
HOTCHKIS & WILEY 6,742,003 sh (+76.95%)
Paul Tudor Jones 64,314 sh (+40.27%)
Jerome Dodson 300,000 sh (+20.00%)
Diamond Hill Capital 4,664,313 sh (+15.05%)
Mairs and Power 3,260,295 sh (+14.82%)
Charles Brandes 2,813,371 sh (+14.00%)
Tweedy Browne 5,006,510 sh (+8.12%)
Manning & Napier Advisors, Inc 425,072 sh (+7.03%)
Joel Greenblatt 135,339 sh (+5.77%)
Wallace Weitz 1,272,799 sh (+5.40%)
Tom Russo 15,184,814 sh (+3.35%)
Chris Davis 24,227,545 sh (+1.23%)
RS Investment Management 759,760 sh (+0.26%)
Donald Yacktman 2,127,795 sh (+0.13%)
Yacktman Fund 1,700,000 sh (unchged)
First Eagle Investment 1,800 sh (unchged)
Charlie Munger 1,591,800 sh (unchged)
Jeff Auxier 4,460 sh (unchged)
Prem Watsa 69,300 sh (unchged)
David Abrams 2,770,000 sh (unchged)
Warren Buffett 479,704,270 sh (unchged)
Murray Stahl 6,971 sh (unchged)
Third Avenue Management Sold Out
T Rowe Price Equity Income Fund 5,248,500 sh (-0.13%)
Arnold Van Den Berg 503,899 sh (-0.30%)
Dodge & Cox 67,648,371 sh (-0.40%)
John Buckingham 109,595 sh (-0.42%)
PRIMECAP Management 18,419,166 sh (-0.44%)
Ken Fisher 18,955,345 sh (-0.77%)
Bill Nygren 5,110,000 sh (-1.16%)
Barrow, Hanley, Mewhinney & Strauss 37,842,797 sh (-2.24%)
Scott Black 44,980 sh (-2.77%)
Mario Gabelli 3,424,878 sh (-3.19%)
David Dreman 41,639 sh (-4.33%)
Lou Simpson 5,820,464 sh (-6.15%)
Pioneer Investments 4,426,510 sh (-12.43%)
NWQ Managers 1,539,400 sh (-12.74%)
Sarah Ketterer 1,701,720 sh (-17.43%)
Richard Pzena 1,019,329 sh (-36.01%)
Jim Simons 36,900 sh (-97.39%)
Jeremy Grantham 7,685 sh (-99.43%)
» More
Q3 2016

WFC Guru Trades in Q3 2016

Steven Cohen 687,845 sh (New)
Paul Tudor Jones 259,237 sh (+303.08%)
Jeff Auxier 8,710 sh (+95.29%)
Jerome Dodson 450,000 sh (+50.00%)
Wallace Weitz 1,520,533 sh (+19.46%)
Charles Brandes 3,158,460 sh (+12.27%)
Chris Davis 26,193,351 sh (+8.11%)
Ruane Cunniff 5,464,817 sh (+4.24%)
Tom Russo 15,808,558 sh (+4.11%)
HOTCHKIS & WILEY 6,771,903 sh (+0.44%)
Donald Yacktman 2,135,604 sh (+0.37%)
Mairs and Power 3,270,349 sh (+0.31%)
Yacktman Fund 1,700,000 sh (unchged)
T Rowe Price Equity Income Fund 5,248,500 sh (unchged)
First Eagle Investment 1,800 sh (unchged)
Charlie Munger 1,591,800 sh (unchged)
Prem Watsa 69,300 sh (unchged)
Louis Moore Bacon 500,000 sh (unchged)
David Abrams 2,770,000 sh (unchged)
Warren Buffett 479,704,270 sh (unchged)
Bill Nygren 5,110,000 sh (unchged)
Jeremy Grantham Sold Out
Sarah Ketterer Sold Out
Jim Simons Sold Out
Richard Pzena 1,017,204 sh (-0.21%)
Scott Black 44,729 sh (-0.56%)
Dodge & Cox 67,255,750 sh (-0.58%)
Arnold Van Den Berg 500,819 sh (-0.61%)
PRIMECAP Management 18,291,827 sh (-0.69%)
John Buckingham 108,019 sh (-1.44%)
Barrow, Hanley, Mewhinney & Strauss 37,011,768 sh (-2.20%)
Mario Gabelli 3,344,815 sh (-2.34%)
Manning & Napier Advisors, Inc 415,006 sh (-2.37%)
NWQ Managers 1,490,786 sh (-3.16%)
David Dreman 40,320 sh (-3.17%)
Ken Fisher 18,189,837 sh (-4.04%)
Lou Simpson 5,549,293 sh (-4.66%)
Diamond Hill Capital 4,378,347 sh (-6.13%)
Tweedy Browne 4,393,961 sh (-12.24%)
Pioneer Investments 3,827,855 sh (-13.52%)
Murray Stahl 5,220 sh (-25.12%)
Joel Greenblatt 30,308 sh (-77.61%)
» More
Q4 2016

WFC Guru Trades in Q4 2016

Ray Dalio 187,900 sh (New)
John Burbank 1,457,626 sh (New)
John Griffin 5,560,100 sh (New)
Stanley Druckenmiller 960,400 sh (New)
Joel Greenblatt 156,836 sh (+417.47%)
Murray Stahl 8,160 sh (+56.32%)
T Rowe Price Equity Income Fund 7,325,000 sh (+39.56%)
David Dreman 49,656 sh (+23.15%)
David Abrams 3,342,343 sh (+20.66%)
Dodge & Cox 71,531,836 sh (+6.36%)
Jeff Auxier 9,110 sh (+4.59%)
Charles Brandes 3,262,400 sh (+3.29%)
PRIMECAP Management 18,548,127 sh (+1.40%)
Ken Fisher 18,364,285 sh (+0.96%)
Chris Davis 26,425,695 sh (+0.89%)
Manning & Napier Advisors, Inc 417,606 sh (+0.63%)
Jerome Dodson 450,000 sh (unchged)
Charlie Munger 1,591,800 sh (unchged)
First Eagle Investment 1,800 sh (unchged)
Richard Pzena 1,017,204 sh (unchged)
Eric Mindich 1,600,000 sh (unchged)
Steven Cohen 200,000 sh (unchged)
Warren Buffett 479,704,270 sh (unchged)
Bill Nygren 5,110,000 sh (unchged)
Scott Black 44,399 sh (-0.74%)
John Buckingham 107,132 sh (-0.82%)
Mario Gabelli 3,249,930 sh (-2.84%)
Arnold Van Den Berg 484,446 sh (-3.27%)
Barrow, Hanley, Mewhinney & Strauss 35,742,031 sh (-3.43%)
Diamond Hill Capital 4,204,258 sh (-3.98%)
HOTCHKIS & WILEY 6,498,965 sh (-4.03%)
Ruane Cunniff 5,213,029 sh (-4.61%)
Prem Watsa 65,800 sh (-5.05%)
Yacktman Fund 1,600,000 sh (-5.88%)
Donald Yacktman 1,990,082 sh (-6.81%)
Tom Russo 14,639,845 sh (-7.39%)
Mairs and Power 2,974,044 sh (-9.06%)
Tweedy Browne 3,787,181 sh (-13.81%)
NWQ Managers 989,204 sh (-33.65%)
Wallace Weitz 898,144 sh (-40.93%)
Steven Cohen 158,300 sh (-76.99%)
Paul Tudor Jones 16,654 sh (-93.58%)
Pioneer Investments 102,777 sh (-97.32%)
Lou Simpson 10,164 sh (-99.82%)
» More
» Details

Insider Trades

Latest Guru Trades with WFC

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Preferred stocks of Wells Fargo & Co

SymbolPriceYieldDescription
WFCNP0.450.00Dividend Equalization Pfd Shs
WFCPRQ26.495.52Deposit Shs Repr 1/1000th 5.85 % Non-Cum Perp Pfd Shs -A- Series -Q-
WFCPRL1237.406.06Wells Fargo & Co., 7.50% Non-Cumul Perp Conv Cl A Preferred Stock, Series L
WFCPRR28.995.71Deposit Shs Repr 1/1000th 6 5/8 % Non-Cum Perp Pfd Shs -A- Series -R-
WFCPRN24.515.30Deposit Repr 1/1000th 5.2% Fixed Perp Pfd Shs A S eries N
WFCPRP24.775.30Deposit Shs Repr 1/1000 Non-Cum Perp Pfd Shs A Series P
WFCPRO24.505.23Deposit Shs Repr 1/1000th 5 1/8 % Non-Cum Perp Pfd Shs -A- Series -0-
WFCPRJ26.207.63Wells Fargo & Co., 8.00% Dep Shares Non-cumul Perp Cl A Preferred Stock Series J
WFCPRT26.065.76Deposit Shs Repr 1/1000th 6 % Non-Cum Perp Pfd Shs -A- Series -T-
WFCPRV26.095.75% Non-Cum Perp Pfd Shs -A- Series -V-
WFCPRW25.154.97Deposit Shs Repr 1/1000th 5 7/10 % Non-Cum Pfd Shs -A- Series -W-
WFCPRX24.472.81Non-Cum Perp Pfd Shs -A- Series -X-

Business Description

Industry: Banks » Banks - Global    NAICS: 522110    SIC: 6021
Compare:NYSE:BAC, NYSE:SAN, NYSE:BNS, NYSE:BBVA, NYSE:BMO, OTCPK:BCLYF » details
Traded in other countries:WFC.Argentina, WFCO34.Brazil, WFC.Chile, NWT.Germany, WFC.Mexico, WFC.Switzerland, 0R2F.UK,
Wells Fargo & Co is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions.

Wells Fargo is one of the four largest banks in the United States, rapidly approaching $2 trillion in balance sheet assets. The company is split into three segments for reporting purposes: community banking; wholesale banking; and wealth, brokerage, and retirement. The company is also a major player in the real estate market, servicing more than $2 trillion in residential and commercial loans.

Guru Investment Theses on Wells Fargo & Co

Dodge & Cox Comments on Wells Fargo - Feb 06, 2017

While we trimmed Financials on a net basis during the fourth quarter, we opportunistically added to Wells Fargo (NYSE:WFC) (up only 5% for 2016), which detracted from relative performance and was weak among bank stocks due to regulatory infractions and fines. We were disappointed to learn about the bank’s sales practices that resulted in improper account openings, but are convinced Wells Fargo is actively addressing the issues. After a comprehensive review, we believe Wells Fargo’s superior franchise, deep management team, track record of generating higher returns than other banks, and attractive valuation at 1.6 times book value make it an attractive long-term investment opportunity. On December 31, Wells Fargo was a 1.8% position in the Fund.





From Dodge & Cox's Global Stock Fund 4th quarter 2016 shareholder letter.



Check out Dodge & Cox latest stock trades

Weitz Funds Comments on Wells Fargo - Jan 26, 2017

Wells Fargo (NYSE:WFC) is a diversified financial services company. Shares rose materially during the quarter largely due to three tailwinds. First, the U.S. election results provided a boost to all bank stocks on expectations that industry regulatory burdens may ease. Second, higher interest rates and a steeper yield curve raised prospects for net interest margin (NIM) expansion. Third, the company took additional steps to address the “bogus account” scandal, including high-level management changes. The company’s very low-cost deposit base, ubiquitous distribution, ample capital and diverse business lines further our continued confidence. Wells Fargo’s stock trades at less than 14x expected earnings and a modest discount to our value estimate.



From Weitz Investment Management's Value Fund fourth quarter 2016 commentary.



Check out Wallace Weitz latest stock trades

Wally Weitz Comments on Wells Fargo - Nov 09, 2016

Wells Fargo (NYSE:WFC) is a financial services company. The opening of bogus bank and credit card accounts at Wells Fargo was a serious violation of customer trust. Management’s pressure on employees to “make the numbers” and their apparent slow response to the problem once it surfaced are serious lapses of judgement and culture. Members of top management are paying a financial price, and some may lose their jobs. The bank may face additional penalties, and the reputational damage is significant. From an investment perspective, though, while the stock will probably be under a cloud for some period of time, we do not expect a permanent impairment of the company’s business value. The company’s very low- cost deposit base, ubiquitous distribution, ample capital and diverse business lines give us confidence in the durability of Wells Fargo’s franchise. The stock trades at less than 12x our earnings estimates, and we continue to own the company at quarter end.

From Wallace Weitz (Trades, Portfolio)'s third quarter 2016 Partners III Opportunity Fund.

Check out Wallace Weitz latest stock trades

Mairs & Power Comments on Wells Fargo - Oct 31, 2016

Another name in the Fund that has been in the news recently is Wells Fargo (NYSE:WFC). Following reports of widespread deceptive sales practices and resulting government fines, which have hurt both the stock price and the company’s reputation, we have received questions from many of our investors expressing concerns about our Wells Fargo position. While we share investors’ concerns about the extent of the unauthorized accounts problem at Wells Fargo, we have decided to hold existing positions for the present. We know many of the senior executives at Wells Fargo and believe they are people of good character. We do not think the current situation indicates a systemic problem with the values of the organization or its people and we are convinced that changes are underway that will remove the incentives that caused the problem. We are also expecting a slower growth rate for Wells Fargo going forward. Despite our expectation for slower growth, the market has (in our opinion) overly punished the stock and this is a very inopportune time to sell Wells Fargo. We will closely monitor the situation and the impact on the company’s competitive position and may make changes to our holdings of Wells Fargo if deemed appropriate.



From Mairs & Power Growth Fund third quarter 2016 commentary.





This commentary includes forward-looking statements such as economic predictions and portfolio manager opinions. The statements are subject to change at any time based on market and other conditions. No pre-dictions, forecasts, outlooks, expectations or beliefs are guaranteed.



Check out Mairs and Power latest stock trades

Ruane Cunniff Comments on Wells Fargo - Oct 13, 2016

We did not add to or reduce our 2% position in Wells Fargo (NYSE:WFC) during the quarter, but recent events prompt us to share our thoughts on the bank with you. News emerged in September that since 2011, Wells Fargo employees had created up to 2.1 million sham customer accounts in order to meet aggressive sales quotas set by bank management. While this behavior caused the bank to fire some 5,300 employees over a period of five years, the bank was distressingly slow to change the incentives that prompted this bad behavior. We believe that Wells management has damaged the bond of trust the bank had built with its customers, and that senior executives should be held accountable for the practices their policies engendered. That said, it is important to note that only about 5% of the unauthorized accounts had fees associated with them—and that these fees came to about $2.6 million in total. Wells Fargo is an enormous enterprise, with 93 million customer accounts and $22.4 billion of net income in the past year. The sham accounts did not make money for Wells, and more likely cost it money as the bank paid bonuses to employees who opened inactive accounts. Wells has suffered deep reputational damage and we will keep a watchful eye on the remedies proposed by management, but we believe Wells remains an attractive franchise with a low valuation.

From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund third quarter 2016 letter to shareholders.

Check out Ruane Cunniff latest stock trades

Tom Russo Comments on Wells Fargo - Sep 26, 2016

Wells Fargo (NYSE:WFC) continues to languish under negative investor sentiment towards large banks in general, despite being immune from some of the problems confronting its industry peers. Wells Fargo remains focused on consumer banking and retail banking, relying upon a large number of account relationships to build stickiness and create banking customer captivity. Wells Fargo shares trade for barely over eleven times net income and provide over three percent dividend yield. I believe that Wells Fargo will continue to enjoy funding benefits from low cost or deposit compared to its competitor bank which suffer higher borrowing costs to fund their own lending operations.



From Tom Russo (Trades, Portfolio)'s Semper Vic Partners second quarter 2016 shareholder letter.



Check out Wells Fargo latest stock trades

Ruane Cunniff Comments on Wells Fargo - Jul 13, 2016

Wells Fargo (NYSE:WFC) is the highest return and arguably the best run very large bank in the U.S. It is the number one U.S. bank in many categories including retail deposits; middle market, small business and used car lending; equipment and inventory financing; railcar leasing; and commercial and residential mortgage servicing and originations. It is in fewer volatile business lines than other large banks. It leads the industry in the intensity of its customer relationships with over six products per customer. The number of primary checking accounts at Wells is currently growing at around 5%, an impressive growth rate for a financial institution of this size. Through deposit-driven asset growth and stock buybacks, Wells has done a good job of counteracting shrinking net interest margins over the past decade.

Wells has a long-tenured management team and its record of technological innovation positions it well to handle both challenges from “fintech” disruptors and customer demands for access through a multitude of distribution channels. Wells has a good record of capital allocation, having added to per-share value during the financial crisis by buying Wachovia, expanding its footprint from its already fast-growing Western base to the equally vibrant Southeast. At the time, Wachovia’s “pick-a-pay” mortgage portfolio concerned many investors, but that portfolio’s quality has turned out to be better than even Wells expected. Recently, Wells acquired a large piece of General Electric’s finance business, an acquisition we think will work out well.

Last quarter, Wells’ $1.2 trillion in deposits cost only 0.10% on an annualized basis, the lowest interest cost among its peer group, if not the entire banking industry. Right now, the value of Wells’ deposit franchise is obscured by the unusually low interest rate environment and the fact that Wells is currently holding a high level of cash balances earning virtually nothing. Credit losses should rise in a more normal environment and new regulations requiring Wells to raise long term debt could pinch margins somewhat, but we think the boost in profits from higher interest rates and a redeployment of high cash balances would offset those impacts.

Wells trades at about 12 times our forward 12 months’ earnings estimate, a sharp discount to the S&P multiple of 17. Historically banks have sold at discounts to other publicly traded companies because of the perceived risk that comes with leverage. But Wells’ common equity capital ratio is roughly double pre-crisis levels, its underwriting standards are tighter, and it has exited some higher risk businesses. This suggests a higher relative multiple might be warranted.

Between our 2% weighting in Wells and our look-through interest in the Wells shares owned by Berkshire Hathaway, Sequoia shareholders have roughly a 3% exposure to the bank.

From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund second quarter 2016 shareholder letter.

Check out Ruane Cunniff latest stock trades

Wallace Weitz Comments on Wells Fargo - Apr 14, 2016

Wells Fargo (NYSE:WFC) ($49 per share) is one of the country’s largest banks, but it has avoided most of the headaches (and risks) associated with the global “money center” banks. It has a strong, conservative lending culture and it added an enormous quantity of cheap deposits during the financial crisis of 2007-09 by acquiring troubled banks. (It also has Warren Buffett (Trades,Portfolio), as a 10% owner, looking over its shoulder.) Wells has suffered compressed net interest margins (as has Redwood) in this period of artificially low rates, yet its earnings have grown to over $4 per share in fiscal year 2014 and again in 2015. When interest rates rise, Wells Fargo’s margins should widen, earnings should increase and the price investors are willing to pay for those earnings (P/E) may increase.

From Wallace Weitz (Trades, Portfolio)'s First Quarter Value Matters.

Check out Wallace Weitz latest stock trades

Davis Funds Comments on Wells Fargo - Sep 11, 2015

Wells Fargo (NYSE:WFC), a representative holding in the Portfolio, is one of the largest and in our view one of the best-managed financial services companies in the United States, serving one in three households nationwide.1 Wells Fargo provides banking, insurance, investment, mortgage, and consumer finance services across North America through its extensive branch network as well as other channels such as loan and wealth management offices, call centers and the Internet. A key competitive advantage is Wells Fargo’s sizeable, low-cost retail deposit base that enables it to generate one of the highest net interest margins in the industry. Wells Fargo has strong capital ratios, is a smart risk manager and is well positioned for continued growth over the years ahead.



From the Davis Financial Fund semi-annual review 2015.



Check out Chris Davis latest stock trades

Top Ranked Articles about Wells Fargo & Co

How Fast Can a Big Bank Grow Its Deposits? A bank with stable market share will grow its deposits at close to the rate of nominal GDP growth. But growth in deposits per branch and deposits per share are what really matter
Someone emailed me this question: Read more...
Dodge & Cox Comments on Wells Fargo Guru stock highlight
While we trimmed Financials on a net basis during the fourth quarter, we opportunistically added to Wells Fargo (NYSE:WFC) (up only 5% for 2016), which detracted from relative performance and was weak among bank stocks due to regulatory infractions and fines. We were disappointed to learn about the bank’s sales practices that resulted in improper account openings, but are convinced Wells Fargo is actively addressing the issues. After a comprehensive review, we believe Wells Fargo’s superior franchise, deep management team, track record of generating higher returns than other banks, and attractive valuation at 1.6 times book value make it an attractive long-term investment opportunity. On December 31, Wells Fargo was a 1.8% position in the Fund. Read more...
Weitz Funds Comments on Wells Fargo Guru stock highlight
Wells Fargo (NYSE:WFC) is a diversified financial services company. Shares rose materially during the quarter largely due to three tailwinds. First, the U.S. election results provided a boost to all bank stocks on expectations that industry regulatory burdens may ease. Second, higher interest rates and a steeper yield curve raised prospects for net interest margin (NIM) expansion. Third, the company took additional steps to address the “bogus account” scandal, including high-level management changes. The company’s very low-cost deposit base, ubiquitous distribution, ample capital and diverse business lines further our continued confidence. Wells Fargo’s stock trades at less than 14x expected earnings and a modest discount to our value estimate. Read more...
Wells Fargo Misses 4th Quarter Earnings Expectations Company loses $592 million in net hedging ineffectiveness
Wells Fargo & Co. (NYSE:WFC) reported net income of $5.3 billion and diluted earnings per share of 96 cents during fourth-quarter 2016. These values slightly underperform comparable figures during fourth-quarter 2015. Heavy losses in the company’s net hedging ineffectiveness contributed to weaker earnings performance. Read more...
Visualizing Financial Trends With Interactive Charts, Other Topics A concluding discussion of the Interactive Charts feature, including technical indicators
In previous articles, we have explored several ways to analyze a company's financial data through Interactive Charts, including: comparing the Piotroski F-score of multiple companies, visualizing historical trends about a company’s income statement and balance sheet, identified undervalued companies based on price-to-sales valuations, generated customized series and constructed user-defined charts. Read more...
Should You Buy Net-Nets or 'Desert Island' Stocks? The best investing strategy is to buy great businesses when they are having temporary problems
Someone who reads my blog emailed me this question: Read more...
Wally Weitz Comments on Wells Fargo Guru stock highlight
Wells Fargo (NYSE:WFC) is a financial services company. The opening of bogus bank and credit card accounts at Wells Fargo was a serious violation of customer trust. Management’s pressure on employees to “make the numbers” and their apparent slow response to the problem once it surfaced are serious lapses of judgement and culture. Members of top management are paying a financial price, and some may lose their jobs. The bank may face additional penalties, and the reputational damage is significant. From an investment perspective, though, while the stock will probably be under a cloud for some period of time, we do not expect a permanent impairment of the company’s business value. The company’s very low- cost deposit base, ubiquitous distribution, ample capital and diverse business lines give us confidence in the durability of Wells Fargo’s franchise. The stock trades at less than 12x our earnings estimates, and we continue to own the company at quarter end. Read more...
Are Any of Buffett's Holdings Cheap Enough to Buy? Warren Buffett is the world's greatest investor, but is it worth following him into any of his current holdings?
Warren Buffett (Trades, Portfolio) is widely regarded as one of the greatest investors ever. Naturally, with this accolade behind him, investors try and copy his investment portfolio in the hope of replicating his performance. However, unlike other fund managers, Buffett’s holdings change rarely, and his top holdings have been a part of the Berkshire (NYSE:BRK.A)(BRK.B) portfolio for decades. Read more...
Mairs & Power Comments on Wells Fargo Guru stock highlight
Another name in the Fund that has been in the news recently is Wells Fargo (NYSE:WFC). Following reports of widespread deceptive sales practices and resulting government fines, which have hurt both the stock price and the company’s reputation, we have received questions from many of our investors expressing concerns about our Wells Fargo position. While we share investors’ concerns about the extent of the unauthorized accounts problem at Wells Fargo, we have decided to hold existing positions for the present. We know many of the senior executives at Wells Fargo and believe they are people of good character. We do not think the current situation indicates a systemic problem with the values of the organization or its people and we are convinced that changes are underway that will remove the incentives that caused the problem. We are also expecting a slower growth rate for Wells Fargo going forward. Despite our expectation for slower growth, the market has (in our opinion) overly punished the stock and this is a very inopportune time to sell Wells Fargo. We will closely monitor the situation and the impact on the company’s competitive Read more...
How Can You Beat the Market? There are many markets where you can find your edge
The investing world is full of tough competition. Better results require hard work. Sometimes even hard work is not enough. Read more...

Ratios

vs
industry
vs
history
PE Ratio 14.03
WFC's PE Ratio is ranked lower than
52% of the 1941 Companies
in the Global Banks - Global industry.

( Industry Median: 13.56 vs. WFC: 14.03 )
Ranked among companies with meaningful PE Ratio only.
WFC' s PE Ratio Range Over the Past 10 Years
Min: 8.71  Med: 13.1 Max: 43.48
Current: 14.03
8.71
43.48
Forward PE Ratio 13.26
WFC's Forward PE Ratio is ranked higher than
56% of the 526 Companies
in the Global Banks - Global industry.

( Industry Median: 14.33 vs. WFC: 13.26 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 14.03
WFC's PE Ratio without NRI is ranked higher than
51% of the 1635 Companies
in the Global Banks - Global industry.

( Industry Median: 14.25 vs. WFC: 14.03 )
Ranked among companies with meaningful PE Ratio without NRI only.
WFC' s PE Ratio without NRI Range Over the Past 10 Years
Min: 8.71  Med: 13.1 Max: 43.48
Current: 14.03
8.71
43.48
Price-to-Owner-Earnings 3.65
WFC's Price-to-Owner-Earnings is ranked higher than
85% of the 905 Companies
in the Global Banks - Global industry.

( Industry Median: 14.04 vs. WFC: 3.65 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
WFC' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 3.5  Med: 4.88 Max: 6.85
Current: 3.65
3.5
6.85
PB Ratio 1.60
WFC's PB Ratio is ranked lower than
74% of the 1810 Companies
in the Global Banks - Global industry.

( Industry Median: 1.17 vs. WFC: 1.60 )
Ranked among companies with meaningful PB Ratio only.
WFC' s PB Ratio Range Over the Past 10 Years
Min: 0.53  Med: 1.51 Max: 2.97
Current: 1.6
0.53
2.97
PS Ratio 3.24
WFC's PS Ratio is ranked higher than
52% of the 1833 Companies
in the Global Banks - Global industry.

( Industry Median: 3.32 vs. WFC: 3.24 )
Ranked among companies with meaningful PS Ratio only.
WFC' s PS Ratio Range Over the Past 10 Years
Min: 0.6  Med: 2.6 Max: 3.62
Current: 3.24
0.6
3.62
Price-to-Free-Cash-Flow 2664.76
WFC's Price-to-Free-Cash-Flow is ranked lower than
100% of the 1008 Companies
in the Global Banks - Global industry.

( Industry Median: 11.76 vs. WFC: 2664.76 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
WFC' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 3.03  Med: 7.45 Max: 2804.29
Current: 2664.76
3.03
2804.29
Price-to-Operating-Cash-Flow 1929.66
WFC's Price-to-Operating-Cash-Flow is ranked lower than
100% of the 1096 Companies
in the Global Banks - Global industry.

( Industry Median: 10.62 vs. WFC: 1929.66 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
WFC' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 3.03  Med: 7.45 Max: 2030.69
Current: 1929.66
3.03
2030.69
EV-to-EBIT 19.82
WFC's EV-to-EBIT is ranked lower than
76% of the 1558 Companies
in the Global Banks - Global industry.

( Industry Median: 11.64 vs. WFC: 19.82 )
Ranked among companies with meaningful EV-to-EBIT only.
WFC' s EV-to-EBIT Range Over the Past 10 Years
Min: 7.1  Med: 16.8 Max: 149.8
Current: 19.82
7.1
149.8
EV-to-EBITDA 17.16
WFC's EV-to-EBITDA is ranked lower than
74% of the 1576 Companies
in the Global Banks - Global industry.

( Industry Median: 10.00 vs. WFC: 17.16 )
Ranked among companies with meaningful EV-to-EBITDA only.
WFC' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.6  Med: 14.9 Max: 99
Current: 17.16
6.6
99
PEG Ratio 1.82
WFC's PEG Ratio is ranked lower than
59% of the 780 Companies
in the Global Banks - Global industry.

( Industry Median: 1.43 vs. WFC: 1.82 )
Ranked among companies with meaningful PEG Ratio only.
WFC' s PEG Ratio Range Over the Past 10 Years
Min: 0.41  Med: 1.11 Max: 12.09
Current: 1.82
0.41
12.09
Shiller PE Ratio 17.96
WFC's Shiller PE Ratio is ranked higher than
62% of the 496 Companies
in the Global Banks - Global industry.

( Industry Median: 20.63 vs. WFC: 17.96 )
Ranked among companies with meaningful Shiller PE Ratio only.
WFC' s Shiller PE Ratio Range Over the Past 10 Years
Min: 4.6  Med: 15.89 Max: 21.55
Current: 17.96
4.6
21.55

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 2.72
WFC's Dividend Yield % is ranked higher than
50% of the 2303 Companies
in the Global Banks - Global industry.

( Industry Median: 2.69 vs. WFC: 2.72 )
Ranked among companies with meaningful Dividend Yield % only.
WFC' s Dividend Yield % Range Over the Past 10 Years
Min: 0.59  Med: 2.57 Max: 15.45
Current: 2.72
0.59
15.45
Dividend Payout Ratio 0.38
WFC's Dividend Payout Ratio is ranked higher than
78% of the 1315 Companies
in the Global Banks - Global industry.

( Industry Median: 0.33 vs. WFC: 0.38 )
Ranked among companies with meaningful Dividend Payout Ratio only.
WFC' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.09  Med: 0.31 Max: 1.86
Current: 0.38
0.09
1.86
3-Year Dividend Growth Rate 9.60
WFC's 3-Year Dividend Growth Rate is ranked higher than
56% of the 772 Companies
in the Global Banks - Global industry.

( Industry Median: 7.60 vs. WFC: 9.60 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
WFC' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: -44.7  Med: 12.9 Max: 79.2
Current: 9.6
-44.7
79.2
Forward Dividend Yield % 2.72
WFC's Forward Dividend Yield % is ranked higher than
50% of the 2274 Companies
in the Global Banks - Global industry.

( Industry Median: 2.95 vs. WFC: 2.72 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 9.28
WFC's 5-Year Yield-on-Cost % is ranked higher than
87% of the 2649 Companies
in the Global Banks - Global industry.

( Industry Median: 3.27 vs. WFC: 9.28 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
WFC' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.02  Med: 8.8 Max: 52.88
Current: 9.28
2.02
52.88
3-Year Average Share Buyback Ratio 1.60
WFC's 3-Year Average Share Buyback Ratio is ranked higher than
89% of the 1010 Companies
in the Global Banks - Global industry.

( Industry Median: -1.60 vs. WFC: 1.60 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
WFC' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -31.2  Med: 0 Max: 1.6
Current: 1.6
-31.2
1.6

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 2.14
WFC's Price-to-Tangible-Book is ranked lower than
82% of the 1798 Companies
in the Global Banks - Global industry.

( Industry Median: 1.25 vs. WFC: 2.14 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
WFC' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 1.8  Med: 5.2 Max: 7.57
Current: 2.14
1.8
7.57
Price-to-Intrinsic-Value-Projected-FCF 0.67
WFC's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
64% of the 1104 Companies
in the Global Banks - Global industry.

( Industry Median: 0.80 vs. WFC: 0.67 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
WFC' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.48  Med: 0.67 Max: 4.5
Current: 0.67
0.48
4.5
Price-to-Intrinsic-Value-DCF (Earnings Based) 0.87
WFC's Price-to-Intrinsic-Value-DCF (Earnings Based) is ranked lower than
54% of the 170 Companies
in the Global Banks - Global industry.

( Industry Median: 0.78 vs. WFC: 0.87 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-DCF (Earnings Based) only.
N/A
Price-to-Median-PS-Value 1.25
WFC's Price-to-Median-PS-Value is ranked lower than
61% of the 1693 Companies
in the Global Banks - Global industry.

( Industry Median: 1.15 vs. WFC: 1.25 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
WFC' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.53  Med: 1.23 Max: 1.85
Current: 1.25
0.53
1.85
Price-to-Peter-Lynch-Fair-Value 1.91
WFC's Price-to-Peter-Lynch-Fair-Value is ranked lower than
72% of the 533 Companies
in the Global Banks - Global industry.

( Industry Median: 1.15 vs. WFC: 1.91 )
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
WFC' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.47  Med: 0.99 Max: 3.61
Current: 1.91
0.47
3.61
Price-to-Graham-Number 1.16
WFC's Price-to-Graham-Number is ranked lower than
68% of the 1556 Companies
in the Global Banks - Global industry.

( Industry Median: 0.93 vs. WFC: 1.16 )
Ranked among companies with meaningful Price-to-Graham-Number only.
WFC' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.88  Med: 1.85 Max: 3.69
Current: 1.16
0.88
3.69
Earnings Yield (Greenblatt) % 5.05
WFC's Earnings Yield (Greenblatt) % is ranked lower than
57% of the 2086 Companies
in the Global Banks - Global industry.

( Industry Median: 6.41 vs. WFC: 5.05 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
WFC' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 0.7  Med: 5.9 Max: 14.1
Current: 5.05
0.7
14.1
Forward Rate of Return (Yacktman) % 15.27
WFC's Forward Rate of Return (Yacktman) % is ranked higher than
60% of the 891 Companies
in the Global Banks - Global industry.

( Industry Median: 11.45 vs. WFC: 15.27 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
WFC' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -4.2  Med: 16.6 Max: 40.4
Current: 15.27
-4.2
40.4

More Statistics

Revenue (TTM) (Mil) $88,267
EPS (TTM) $ 3.99
Beta1.01
Short Percentage of Float0.75%
52-Week Range $43.55 - 59.99
Shares Outstanding (Mil)5,003.87

Analyst Estimate

Dec17 Dec18 Dec19
Revenue (Mil $) 92,134 95,433 100,355
EPS ($) 4.23 4.55 5.04
EPS without NRI ($) 4.23 4.55 5.04
EPS Growth Rate
(Future 3Y To 5Y Estimate)
5.60%
Dividends per Share ($) 1.62 1.75 1.95
» More Articles for WFC

Headlines

Articles On GuruFocus.com
Chou Opportunity Fund 4th Quarter Message to Shareholders Mar 24 2017 
Berkshire Hathaway After Buffett Mar 22 2017 
Which Is the Better Bank Dividend Stock? Mar 21 2017 
What You Need to Know About the March Rate Hike Mar 20 2017 
Is TD Bank a Better Bargain Than Ever? Mar 15 2017 
The Key to Successful Investing Is Understanding Your Weaknesses Mar 08 2017 
Buffett Stocks in Focus: American Express Mar 01 2017 
Berkshire Hathaway: Repurchase Limit Crosses $135 Per Share Mar 01 2017 
3 Charlie Munger-Approved Banks Feb 28 2017 
Risk Reward With Urban Outfitters Feb 22 2017 

More From Other Websites
Stock Futures Edge Higher as U.K. Invokes Article 50 in First Step of Brexit Mar 29 2017
Wells Fargo agrees to $110 million settlement over fake accounts Mar 29 2017
Wells Fargo says flunked test for community lending Mar 28 2017
Wells Fargo agrees to $110 million settlement in fake-accounts lawsuits Mar 28 2017
Wells Fargo Gets Lower Marks on Community-Lending Scorecard Mar 28 2017
[$$] Regulators find 'pervasive pattern' of abuse at Wells Fargo Mar 28 2017
Wells Fargo to pay $110 million to settle lawsuit over account abuses Mar 28 2017
Wells Fargo agrees to $110 million settlement of class-action suit Mar 28 2017
Wells Fargo Announces Agreement in Principle to Settle Class Action Lawsuit Regarding Retail Sales... Mar 28 2017
Wells Fargo fails test of community lending -bank Mar 28 2017
OCC downgrades Wells Fargo’s Community Reinvestment Act rating Mar 28 2017
WELLS FARGO & COMPANY/MN Files SEC form 8-K, Financial Statements and Exhibits Mar 28 2017
1:18 pm Wells Fargo announces the results of its most recent Community Reinvestment Act Performance... Mar 28 2017
Wells Fargo failed test of community lending, bank says Mar 28 2017
Wells Fargo Announces Community Reinvestment Act Rating Mar 28 2017
Wells Fargo Unveils Cardless ATMs to Boost Digitalization Mar 28 2017
Why the bank of the future will look like an Apple store Mar 27 2017
[$$] Wells Fargo's Robo Adviser to Cost More Than Rivals' Options Mar 27 2017
Forgot your ATM Card? At Wells Fargo, Your Smart Phone Will Suffice Mar 27 2017
Wells Fargo embraces its Western roots in Opera Carolina’s upcoming production Mar 27 2017

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)