📊 WFC Key Takeaways
Is Wells Fargo & Company/Mn (WFC) a Good Investment?
Wells Fargo demonstrates solid profitability with strong net margins (24.4%) and reasonable operating margins (28.9%), supported by 83.9% revenue growth. However, severe operational concerns including negative free cash flow (-$19.0B), deteriorating interest coverage (1.2x), and modest ROA (1.0%) suggest underlying business quality issues that offset headline growth metrics.
Wells Fargo shows solid core profitability, with a 28.9% operating margin, 24.4% net margin, and double-digit ROE of 11.8%, while net income and diluted EPS both improved year over year. However, growth quality is mixed because revenue growth appears unusually large relative to earnings growth, operating cash flow was negative, and leverage remains meaningful for a bank balance sheet.
Why Buy Wells Fargo & Company/Mn Stock? WFC Key Strengths
- Exceptional revenue growth of 83.9% year-over-year indicates strong demand and market positioning
- High net profit margin of 24.4% demonstrates pricing power and cost efficiency relative to revenue generation
- Substantial asset base of $2.1T provides scale and diversification across banking operations
- Healthy equity position of $181.1B with manageable debt-to-equity ratio of 0.96x
- Strong absolute profitability with $21.34B net income and healthy 24.4% net margin
- Improving shareholder earnings profile with diluted EPS up 16.6% year over year
- Large liquidity and capital base, including $172.59B of cash and $181.12B of equity
WFC Stock Risks: Wells Fargo & Company/Mn Investment Risks
- Negative operating cash flow of -$19.0B raises serious concerns about cash generation capability and sustainability of operations
- Critically low interest coverage ratio of 1.2x indicates minimal cushion to service debt obligations
- Negative free cash flow margin of -21.8% suggests the business is not converting revenue growth into cash returns
- ROA of only 1.0% is extremely low for a $2.1T asset base, indicating poor asset utilization efficiency
- High leverage with $174.7B long-term debt combined with negative cash flow creates refinancing risk
- Negative operating and free cash flow of $19.00B suggests weaker cash generation quality in the latest period
- Interest coverage of 1.2x indicates limited earnings buffer relative to funding costs
- Low 1.0% ROA and near-1.0x debt-to-equity reflect the structurally leveraged and efficiency-sensitive nature of the balance sheet
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Interest coverage ratio improvement and debt service capacity
- Net income sustainability given the revenue growth composition
- Asset quality metrics and loan loss provisions
- Regulatory capital requirements and liquidity stress tests
- Net interest margin and interest coverage trend
- Operating cash flow normalization and return on equity
Wells Fargo & Company/Mn (WFC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
WFC Profit Margin, ROE & Profitability Analysis
WFC vs Market Sector: How Wells Fargo & Company/Mn Compares
How Wells Fargo & Company/Mn compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Wells Fargo & Company/Mn Stock Overvalued? WFC Valuation Analysis 2026
Based on fundamental analysis, Wells Fargo & Company/Mn has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Wells Fargo & Company/Mn Balance Sheet: WFC Debt, Cash & Liquidity
WFC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Wells Fargo & Company/Mn's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $4.83 reflects profitable operations.
WFC Revenue Growth, EPS Growth & YoY Performance
WFC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2020 | $18.9B | $309.0M | $-0.23 |
| Q2 2020 | $17.8B | -$1.7B | $-0.65 |
| Q1 2020 | $17.7B | $42.0M | $0.01 |
| Q3 2019 | $21.9B | $4.0B | $0.92 |
| Q2 2019 | $21.6B | $4.6B | $0.98 |
| Q1 2019 | $21.6B | $2.5B | $0.96 |
| Q3 2018 | $21.8B | $4.1B | $0.83 |
| Q2 2018 | $21.6B | $4.6B | $0.98 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Wells Fargo & Company/Mn Dividends, Buybacks & Capital Allocation
WFC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Wells Fargo & Company/Mn (CIK: 0000072971)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WFC
What is the AI rating for WFC?
Wells Fargo & Company/Mn (WFC) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WFC's key strengths?
Claude: Exceptional revenue growth of 83.9% year-over-year indicates strong demand and market positioning. High net profit margin of 24.4% demonstrates pricing power and cost efficiency relative to revenue generation. ChatGPT: Strong absolute profitability with $21.34B net income and healthy 24.4% net margin. Improving shareholder earnings profile with diluted EPS up 16.6% year over year.
What are the risks of investing in WFC?
Claude: Negative operating cash flow of -$19.0B raises serious concerns about cash generation capability and sustainability of operations. Critically low interest coverage ratio of 1.2x indicates minimal cushion to service debt obligations. ChatGPT: Negative operating and free cash flow of $19.00B suggests weaker cash generation quality in the latest period. Interest coverage of 1.2x indicates limited earnings buffer relative to funding costs.
What is WFC's revenue and growth?
Wells Fargo & Company/Mn reported revenue of $87.3B.
Does WFC pay dividends?
Wells Fargo & Company/Mn pays dividends, with $5,434.0M distributed to shareholders in the trailing twelve months.
Where can I find WFC SEC filings?
Official SEC filings for Wells Fargo & Company/Mn (CIK: 0000072971) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WFC's EPS?
Wells Fargo & Company/Mn has a diluted EPS of $6.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WFC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Wells Fargo & Company/Mn has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WFC stock overvalued or undervalued?
Valuation metrics for WFC: ROE of 11.8% (sector avg: 15%), net margin of 24.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy WFC stock in 2026?
Our dual AI analysis gives Wells Fargo & Company/Mn a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WFC's free cash flow?
Wells Fargo & Company/Mn's operating cash flow is $-19.0B, with capital expenditures of N/A. FCF margin is -21.8%.
How does WFC compare to other Market stocks?
Vs Default sector averages: Net margin 24.4% (avg: 12%), ROE 11.8% (avg: 15%), current ratio N/A (avg: 1.8).