Wells Fargo Current Valuation vs. Profit Margin

WFC Stock  CAD 18.75  0.05  0.27%   
Considering Wells Fargo's profitability and operating efficiency indicators, Wall Financial is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Wells Fargo's ability to earn profits and add value for shareholders. As of the 9th of December 2024, Price To Sales Ratio is likely to grow to 5.74. Also, Days Sales Outstanding is likely to grow to 27.32. At this time, Wells Fargo's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 9th of December 2024, Income Before Tax is likely to grow to about 36.1 M, while Operating Income is likely to drop about 40.7 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.490.4624
Notably Up
Slightly volatile
Net Profit Margin0.10.1433
Way Down
Very volatile
Operating Profit Margin0.370.353
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.140.1874
Way Down
Very volatile
Return On Assets0.03210.0248
Significantly Up
Pretty Stable
Return On Equity0.170.1406
Fairly Up
Slightly volatile
For Wells Fargo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wells Fargo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wall Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wells Fargo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wall Financial over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in Wells Stock, please use our How to Invest in Wells Fargo guide.
Please note, there is a significant difference between Wells Fargo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Wells Fargo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wells Fargo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Wall Financial Profit Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Wells Fargo's current stock value. Our valuation model uses many indicators to compare Wells Fargo value to that of its competitors to determine the firm's financial worth.
Wall Financial is rated third in current valuation category among its peers. It is rated third in profit margin category among its peers . The ratio of Current Valuation to Profit Margin for Wall Financial is about  9,233,689,993 . At this time, Wells Fargo's Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Wells Fargo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Wells Fargo's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Wells Current Valuation vs. Competition

Wall Financial is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Real Estate industry is at this time estimated at about 12.98 Billion. Wells Fargo holds roughly 1.24 Billion in current valuation claiming about 10% of equities listed under Real Estate industry.

Wells Profit Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Wells Fargo

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.24 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Wells Fargo

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.13 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Wells Profit Margin Comparison

Wells Fargo is currently under evaluation in profit margin category among its peers.

Wells Fargo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Wells Fargo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wells Fargo will eventually generate negative long term returns. The profitability progress is the general direction of Wells Fargo's change in net profit over the period of time. It can combine multiple indicators of Wells Fargo, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income208.1 M218.5 M
Operating Income54.8 M40.7 M
Income Before Tax29.1 M36.1 M
Total Other Income Expense Net-25.7 M-24.4 M
Net Income22.2 M26.9 M
Income Tax Expense8.9 M7.3 M
Net Income From Continuing Ops20.2 M19.2 M
Net Income Applicable To Common Shares55.4 M36.2 M
Interest Income1.2 M1.1 M
Net Interest Income-25.8 M-24.5 M
Change To Netincome-20.2 M-19.2 M
Net Income Per Share 0.69  0.54 
Income Quality 0.70  0.74 
Net Income Per E B T 0.76  0.76 

Wells Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Wells Fargo. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Wells Fargo position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Wells Fargo's important profitability drivers and their relationship over time.

Use Wells Fargo in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Wells Fargo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Wells Fargo will appreciate offsetting losses from the drop in the long position's value.

Wells Fargo Pair Trading

Wall Financial Pair Trading Analysis

The ability to find closely correlated positions to Wells Fargo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wells Fargo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Wells Fargo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Wall Financial to buy it.
The correlation of Wells Fargo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Wells Fargo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wall Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Wells Fargo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Wells Fargo position

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Other Information on Investing in Wells Stock

To fully project Wells Fargo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Wall Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Wells Fargo's income statement, its balance sheet, and the statement of cash flows.
Potential Wells Fargo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Wells Fargo investors may work on each financial statement separately, they are all related. The changes in Wells Fargo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Wells Fargo's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.