Wells Fargo & Company is an American multinational banking and financial services holding company with operations across the world. The company was founded in 1852 and is headquartered in San Francisco, California. Today Wells Fargo is the fourth largest bank in the US. Wells Fargo has $1.4 trillion in assets and more than 265,000 team members in more than 35 countries across more than 80 businesses lines. The company’s diversified financial services include banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores and more than 12,000 ATMs as well as the Internet (wellsfargo.com). One in three households in America does business with Wells Fargo. Wells Fargo has three operating segments for management reporting purposes: Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement. The company's Community Banking segment offers deposits, such as checking accounts, savings deposits, market rate accounts, individual retirement accounts, time deposits, and debit cards; and loan products, including lines of credit, auto floor plan lines, equity lines and loans, equipment and transportation loans, education loans, residential mortgage loans, and credit cards. Its Wholesale Banking segment offers commercial loans and lines of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange, treasury management, investment management, institutional fixed-income sales, interest rate, commodity and equity risk management, online/electronic products, and investment banking services. The company's Wealth, Brokerage, and Retirement segment offers financial advisory, wealth management, brokerage, retirement, trust, and reinsurance services. The financial services industry is highly competitive. Wells Fargo’s subsidiaries compete with financial services providers such as banks, savings and loan associations, credit unions, finance companies, mortgage banking companies, insurance companies, investment banks and mutual fund companies. Since Wells Fargo mostly focuses its business operations on the domestic U.S. market, its major nationwide competitors include Bank of America (BAC), JP Morgan Chase (JPM), and Citigroup (C). Direct Competitor Comparison| |
| WFC| BAC| C| JPM| Industry|
Market Cap:| 197.85B| 131.92B| 141.62B| 183.58B| 43.76B| Employees:| 274,300| 262,812| 257,000| 255,898| 81.89K| Qtrly Rev Growth (yoy):| 0.02| 0.17| 0.10| 0.01| 0.30| Revenue (ttm): | 79.85B| 77.09B| 60.94B| 90.84B| 19.87B| Operating Margin (ttm): | 0.41| 0.15| 0.15| 0.36| 0.31| Net Income (ttm):| 18.91B| 4.68B| 8.42B| 21.43B| N/A| EPS (ttm):| 3.53| 0.42| 2.72| 5.60| 1.13|
P/E (ttm):| 10.60| 28.89| 17.13| 8.58| 15.28|
PEG (5 yr expected):| 1.24| 0.58| 0.74| 1.23| 1.22|
P/S (ttm):| 2.48| 1.71| 2.32| 2.02| 2.48|
II. SWOT Analysis
STRENGTHS * Strong market position in the US financial services industry * Cross selling provides higher returns per dollar invested * Strong capital base protecting against market uncertainties * Diversified business model * Diversified earnings distribution across segments * Strong credit discipline| WEAKNESSES * Unfavorable shift in earning assets and yields may affect net interest margin * Lack of international presence weakening competitive position * Weakening expense management affecting probability * Large exposure to real estate impact profitability during weak housing market | OPPORTUNITIES * Expanding internationally and taking advantage of emerging markets * Excellent capital levels can lead to more acquisitions * Wealth Management likely to provide long term opportunities * Focus on servicing immigrant customers * Increasing online customer base will improve operating performance|...