Wells Fargo & Company [NYSE: WFC] shares went higher by 0.79% from its previous closing of $47.82, now trading at the price of $48.20, also adding 0.38 points. Is WFC stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 3.82 million contracts. Compared to the average trading volume of WFC shares, the company saw a far better performance. Moreover, the stock has a 4.40B float and a -0.52% run over in the last seven days. WFC share price has been hovering between $55.04 and $43.02 lately, and is definitely worthy of attention.
Wells Fargo & Company [NYSE:WFC]: Analyst Rating and Earnings
Its stock price has been found in the range of 43.02 to 55.04. This is compared to its latest closing price of $47.82.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 15 Oct (In 6 Days).
Fundamental Analysis of Wells Fargo & Company [WFC]
Now let’s turn to look at profitability: with a current Operating Margin for Wells Fargo & Company [WFC] sitting at +28.48, this company’s Net Margin is now 33.50%. These measurements indicate that Wells Fargo & Company [WFC] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 5.41, and its Return on Invested Capital has reached 10.60%. Its Return on Equity is 11.11, and its Return on Assets is 1.16. These metrics suggest that this Wells Fargo & Company does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Wells Fargo & Company [WFC] has generated a Total Debt to Total Equity ratio of 170.69. Similarly, its Total Debt to Total Capital is 63.06, while its Total Debt to Total Assets stands at 17.58.
What about valuation? This company’s Enterprise Value to EBITDA is 16.90. The Enterprise Value to Sales for this firm is now 5.08, and its Total Debt to Enterprise Value stands at 0.60. Wells Fargo & Company [WFC] has a Price to Book Ratio of 1.22, a Price to Cash Flow Ratio of 6.18 and P/E Ratio of 9.95. These metrics all suggest that Wells Fargo & Company is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Wells Fargo & Company [WFC] earns $392,114 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.05. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 0.28.
Wells Fargo & Company [WFC] has 4.47B shares outstanding, amounting to a total market cap of $213.73B. Its stock price has been found in the range of 43.02 to 55.04. At its current price, it has moved down by -12.43% from its 52-week high, and it has moved up 12.04% from its 52-week low.
This stock’s Beta value is currently 1.11, which indicates that it is 1.64% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 49.23. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Wells Fargo & Company [WFC] a Reliable Buy?
Shares of Wells Fargo & Company [WFC], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.