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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2880
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$268.5B
Charles W. Scharf
Wells Fargo & Company provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. Wells Fargo was founded in 1852 and is headquartered in San Francisco.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = WFC ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$WFC WELLS FARGO & COMPANY/MN | 45 | 26 | 33 | 58 | 13.0x | 18.1x | 11.5% | 1.0% | 0.0% | 30.0% | 25.5% | 3.6% | 2.0% | 97.0x | $268.5B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
WELLS FARGO & COMPANY/MN (WFC) receives a "Reduce" rating with a composite score of 44.5/100. It ranks #2880 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for WFC.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 26 | 14 | +12ALPHA |
| MOMENTUM | 58 | 62 | -4NEUTRAL |
| VALUATION | 33 | 28 | +5NEUTRAL |
| INVESTMENT | 36 | 62 | -26DRAG |
| STABILITY | 54 | 56 | -2NEUTRAL |
| SHORT INT | 68 | 82 | -14DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 3.8% vs WACC 7.7% (spread -3.9%)
GM 0% vs sector 78%, OM 30% vs sector 18%
Capital turnover 0.15x
Rev growth 4%, 10yr history
Interest coverage 0.7x, Net debt/EBITDA 20.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate WELLS FARGO & COMPANY/MN (WFC) as a Reduce with a composite score of 44.5/100 at a current price of $84.58. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
WELLS FARGO & COMPANY/MN holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.5/100 places it at rank #2880 in our full universe.
No Moat
Medium
Standard
Fair Value
Stable competitive position in a defensive sector.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
WELLS FARGO & COMPANY/MN represents a reduce based on multi-factor quantitative performance.
WELLS FARGO & COMPANY/MN receives a Reduce rating from our analysis, with a composite score of 44.5/100 and 2 out of 5 stars, ranking #2880 out of 7,333 stocks. WFC's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
WFC's quality score of 26/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 11.5% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 25.5% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 33/100, WFC appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 13.00x, an EV/EBITDA of 18.15x, a P/B ratio of 1.50x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
WELLS FARGO & COMPANY/MN's investment score of 36/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 3.6% vs. a sector average of 10.7% and a return on assets of 1.0% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
WFC demonstrates moderate momentum with a score of 58/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 3.6% year-over-year, while a beta of 1.03 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 54/100, WFC exhibits average financial resilience. Key stability metrics include a beta of 1.03 and a debt-to-equity ratio of 97.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
WFC carries a short interest score of 68/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 97.00x). At $268.5B market cap (mega-cap), WELLS FARGO & COMPANY/MN offers reasonable institutional liquidity.
WFC offers a modest dividend yield of 2.0%. This compares to a sector average dividend yield of 2.0%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
WELLS FARGO & COMPANY/MN is a mega-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2880 of 7,333 overall (61st percentile). Key comparisons include ROE of 11.5% exceeding the 9.0% sector median and operating margins of 30.0% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While WFC currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Quality (26) would have the largest impact on the composite score.
EV/EBITDA 134% ABOVE SECTOR MEDIAN
ROE 28% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
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