Wells Fargo Net Income vs. Gross Profit
WFC Stock | CAD 18.75 0.05 0.27% |
Net Income | First Reported 1997-04-30 | Previous Quarter 3.4 M | Current Value 11.4 M | Quarterly Volatility 9.6 M |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.49 | 0.4624 |
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Net Profit Margin | 0.1 | 0.1433 |
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Operating Profit Margin | 0.37 | 0.353 |
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Pretax Profit Margin | 0.14 | 0.1874 |
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Return On Assets | 0.0321 | 0.0248 |
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Return On Equity | 0.17 | 0.1406 |
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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.
Wells |
Wall Financial Gross Profit vs. Net Income 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 fourth in net income category among its peers. It is rated fourth in gross profit category among its peers fabricating about 2.75 of Gross Profit per Net Income. At this time, Wells Fargo's Net Income 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 Gross Profit vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Wells Fargo |
| = | 22.23 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Wells Fargo |
| = | 61.09 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Wells Gross Profit Comparison
Wells Fargo is currently under evaluation in gross profit 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 Reported | Projected for Next Year | ||
Accumulated Other Comprehensive Income | 208.1 M | 218.5 M | |
Operating Income | 54.8 M | 40.7 M | |
Income Before Tax | 29.1 M | 36.1 M | |
Total Other Income Expense Net | -25.7 M | -24.4 M | |
Net Income | 22.2 M | 26.9 M | |
Income Tax Expense | 8.9 M | 7.3 M | |
Net Income From Continuing Ops | 20.2 M | 19.2 M | |
Net Income Applicable To Common Shares | 55.4 M | 36.2 M | |
Interest Income | 1.2 M | 1.1 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.Use Investing Themes to Complement your Wells Fargo position
In addition to having Wells Fargo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Macroaxis Index Thematic Idea Now
Macroaxis Index
An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Macroaxis Index Theme or any other thematic opportunities.
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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.