Wells Fargo Gross Profit vs. Shares Owned By Institutions

WFC Stock  USD 70.44  0.36  0.51%   
Considering Wells Fargo's profitability and operating efficiency indicators, Wells Fargo's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Wells Fargo's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1990-03-31
Previous Quarter
20.7 B
Current Value
20.8 B
Quarterly Volatility
8.4 B
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.55, whereas Price To Sales Ratio is forecasted to decline to 2.18. At present, Wells Fargo's Change To Netincome is projected to increase significantly based on the last few years of reporting. The current year's Net Income Per Share is expected to grow to 5.45, whereas Accumulated Other Comprehensive Income is projected to grow to (11 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.860.96
Moderately Down
Slightly volatile
Net Profit Margin0.160.248
Way Down
Pretty Stable
Operating Profit Margin0.580.3714
Way Up
Slightly volatile
Pretax Profit Margin0.230.2803
Significantly Down
Slightly volatile
Return On Assets0.01320.0099
Significantly Up
Slightly volatile
Return On Equity0.150.1031
Way 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 Wells Fargo 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 Wells Fargo over time as well as its relative position and ranking within its peers.
  

Wells Fargo's Revenue Breakdown by Earning Segment

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Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wells Fargo. If investors know Wells will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wells Fargo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.04)
Dividend Share
1.45
Earnings Share
4.78
Revenue Per Share
22.23
Quarterly Revenue Growth
(0.02)
The market value of Wells Fargo is measured differently than its book value, which is the value of Wells that is recorded on the company's balance sheet. Investors also form their own opinion of Wells Fargo's value that differs from its market value or its book value, called intrinsic value, which is Wells Fargo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wells Fargo's market value can be influenced by many factors that don't directly affect Wells Fargo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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.

Wells Fargo Shares Owned By Institutions vs. Gross Profit 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.
JavaScript chart by amCharts 3.21.15JPMBACCTDRYUBSWFC 01020304050607080 020B40B60B80B100B120B140B
Wells Fargo is rated third in gross profit category among its peers. It is rated second in shares owned by institutions category among its peers . The ratio of Gross Profit to Shares Owned By Institutions for Wells Fargo is about  938,394,597 . At present, Wells Fargo's Gross Profit is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Wells Fargo's earnings, one of the primary drivers of an investment's value.

Wells Shares Owned By Institutions vs. Gross Profit

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

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
72.25 B
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.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Wells Fargo

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
76.99 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

Wells Shares Owned By Institutions Comparison

76.9984.0773.7773.47100%
Wells Fargo is currently under evaluation in shares owned by institutions 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 Income-11.6 B-11 B
Operating Income28.7 B17.3 B
Net Income19.1 B10.7 B
Income Tax Expense2.6 B3.7 B
Income Before Tax21.6 B14.8 B
Total Other Income Expense Net-7 B-6.7 B
Net Income Applicable To Common Shares13.9 B13.6 B
Net Income From Continuing Ops17.9 B15.2 B
Net Interest Income53 B36.8 B
Interest Income80.1 B62.8 B
Change To Netincome11.7 B12.3 B
Net Income Per Share 5.19  5.45 
Income Quality 2.11  2.21 
Net Income Per E B T 0.88  0.56 

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

Wells Fargo 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 Wells Fargo 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 Wells Fargo 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

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.

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When determining whether Wells Fargo offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wells Fargo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Wells Fargo Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Wells Fargo Stock:
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For information on how to trade Wells Stock refer to our How to Trade Wells Stock guide.
You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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 Wells Fargo 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.