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Wells Fargo Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Wells Fargo has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Wells Fargo's Piotroski F-Score or its related term are showing as below:

WFC' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Wells Fargo was 8. The lowest was 1. And the median was 5.


Wells Fargo Piotroski F-Score Historical Data

The historical data trend for Wells Fargo's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wells Fargo Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 4.00 7.00

Wells Fargo Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 5.00 7.00 7.00 6.00

Competitive Comparison

For the Banks - Diversified subindustry, Wells Fargo's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Wells Fargo Piotroski F-Score Distribution

For the Banks industry and Financial Services sector, Wells Fargo's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Wells Fargo's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was 6040 + 5122 + 5750 + 3671 = $20,583 Mil.
Cash Flow from Operations was -8062 + -4810 + 4817 + 199 = $-7,856 Mil.
Revenue was 20270 + 18834 + 20856 + 17592 = $77,552 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(1959543 + 1945996 + 1954901 + 1948068 + 1939709) / 5 = $1949643.4 Mil.
Total Assets at the begining of this year (Mar21) was $1,959,543 Mil.
Long-Term Debt & Capital Lease Obligation was $153,337 Mil.
Total Assets was $1,939,709 Mil.
Total Liabilities was $1,758,020 Mil.
Net Income was -3846 + 3216 + 3091 + 4636 = $7,097 Mil.

Revenue was 18286 + 19316 + 18489 + 18532 = $74,623 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(1981349 + 1968766 + 1922220 + 1952911 + 1959543) / 5 = $1956957.8 Mil.
Total Assets at the begining of last year (Mar20) was $1,981,349 Mil.
Long-Term Debt & Capital Lease Obligation was $183,312 Mil.
Total Assets was $1,959,543 Mil.
Total Liabilities was $1,771,195 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Wells Fargo's current Net Income (TTM) was 20,583. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Wells Fargo's current Cash Flow from Operations (TTM) was -7,856. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar21)
=20583/1959543
=0.01050398

ROA (Last Year)=Net Income/Total Assets (Mar20)
=7097/1981349
=0.0035819

Wells Fargo's return on assets of this year was 0.01050398. Wells Fargo's return on assets of last year was 0.0035819. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Wells Fargo's current Net Income (TTM) was 20,583. Wells Fargo's current Cash Flow from Operations (TTM) was -7,856. ==> -7,856 <= 20,583 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=153337/1949643.4
=0.07864874

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=183312/1956957.8
=0.09367192

Wells Fargo's gearing of this year was 0.07864874. Wells Fargo's gearing of last year was 0.09367192. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Mar22)=Total Assets/Total Liabilities
=1939709/1758020
=1.10334865

Current Ratio (Last Year: Mar21)=Total Assets/Total Liabilities
=1959543/1771195
=1.10633951

Wells Fargo's current ratio of this year was 1.10334865. Wells Fargo's current ratio of last year was 1.10633951. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Wells Fargo's number of shares in issue this year was 3868.9. Wells Fargo's number of shares in issue last year was 4171. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=20583/77552
=0.26540902

Net Margin (Last Year: TTM)=Net Income/Revenue
=7097/74623
=0.09510473

Wells Fargo's net margin of this year was 0.26540902. Wells Fargo's net margin of last year was 0.09510473. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=77552/1959543
=0.03957657

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=74623/1981349
=0.03766272

Wells Fargo's asset turnover of this year was 0.03957657. Wells Fargo's asset turnover of last year was 0.03766272. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+0+1+0+1+0+1+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Wells Fargo has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Wells Fargo  (NYSE:WFC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Wells Fargo Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Wells Fargo's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Wells Fargo Business Description

Wells Fargo logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6021
Address
420 Montgomery Street, San Francisco, CA, USA, 94104
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company is split into four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.
Executives
Scharf Charles W director, officer: CEO & President C/O VISA INC. 900 METRO CENTER BLVD. FOSTER CITY CA 94404
Williams Ather Iii officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Santomassimo Michael P. officer: Sr. EVP & CFO 225 LIBERTY STREET NEW YORK NY 10286
Noski Charles H director ONE PICKWICK PLAZA GREENWICH CT 06830
Hewett Wayne M. director 5 WESTBROOK CORPORATE CENTER WESTCHESTER IL 60154
Chancy Mark A director 303 PEACHTREE ST. 30TH FLOOR ATLANTA GA 30308
Black Steven D director C/O JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Clark Celeste A. director C/O ADVANCEPIERRE FOODS HOLDINGS, INC. 9987 CARVER ROAD BLUE ASH OH 45242
Sargent Ronald director 1014 VINE STREET CINCINNATI OH 45202
Owens Lester officer: Sr. Executive Vice President 240 GREENWICH STREET NEW YORK NY 10286
Galloreese David officer: Sr. Executive Vice President 420 MONTGOMERY STREET SAN FRANCISCO CA 94104
Norton Amanda G officer: Sr. EVP and Chief Risk Officer 420 MONTGOMERY STREET SAN FRANCISCO CA 94104
Flowers Derek A. officer: Sr. Executive Vice President 301 SOUTH COLLEGE STREET CHARLOTTE NC 28202
Craver Theodore F Jr director DUKE ENERGY CORPORATION 550 SOUTH TRYON STREET - DEC45A CHARLOTTE NC 28202
Sommers Barry officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001

Wells Fargo Headlines

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