WFC
Wells Fargo & Company
Financial Services · Banks - Diversified · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Solid annual net income and EPS growth, an above-average ROE of 11.8%, and a balanced leverage profile contributed positively to the composite score of 49.8 out of 100.
- Decelerating quarterly momentum, with net income and operating income both falling after a 2025Q3 peak, weighed on the momentum component.
- The absence of a macro theme assignment and a relatively low dividend payout ratio of 25.5% both constrained the composite score, resulting in a 'Research Further' label.
Why Not Higher
- The two consecutive quarters of declining net income and operating income through 2026Q1 penalized the momentum factor, limiting the overall composite score.
- Receiving no credit under the model's theme methodology due to the absence of a macro theme assignment structurally held back the total score.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Net income grew from FY2024's $19,722,000,000 to FY2025's $21,338,000,000, a gain of 8.2%, while diluted EPS rose from $5.37 in FY2024 to $6.26 in FY2025, a gain of 16.6%.
The model appears to have rewarded the meaningful EPS expansion and solid net income growth, but the moderate absolute pace of both metrics relative to higher-growth peers likely kept the score in the lower-middle range.
Wells Fargo reported a return on equity of 11.8% in FY2025.
An ROE of 11.8% in FY2025 signals that the company is generating meaningful returns on shareholder capital, which the model rewarded with a above-average profitability score, though there remains room relative to the maximum possible score.
In FY2025, Wells Fargo carried a debt-to-equity ratio of 0.96 and total assets of $2,148,631,000,000.
A debt-to-equity ratio below 1.0 in FY2025 suggests a relatively balanced leverage profile for a large bank, and the massive asset base of over $2 trillion reflects the firm's scale, both of which the model appears to have rewarded with a solid financial health score.
Net income over the last four quarters moved from $5,494,000,000 in 2025Q2 to $5,589,000,000 in 2025Q3, then declined to $5,361,000,000 in 2025Q4 and further to $5,253,000,000 in 2026Q1. Operating income followed a similar arc, rising from $6,438,000,000 in 2025Q2 to a peak of $6,909,000,000 in 2025Q3 before falling to $6,526,000,000 in 2025Q4 and $5,981,000,000 in 2026Q1.
Both net income and operating income show a peak in 2025Q3 followed by two consecutive quarters of decline, indicating decelerating momentum that the model penalized, resulting in a below-average score.
Dividends per share have risen each year from $1.10 in FY2022 to $1.30 in FY2023, $1.50 in FY2024, and $1.70 in FY2025, while the dividend payout ratio stood at 25.5% of net income in FY2025.
The consistent annual dividend growth is a positive signal, but the relatively low payout ratio of 25.5% in FY2025 indicates that only a modest share of earnings is returned to shareholders via dividends, which likely constrained the score under the model's dividend weighting.
Wells Fargo is not currently assigned to any of the 24 tracked macro themes.
Because the security carries no macro theme assignment at this time, it does not receive theme-related score credit under the model's current methodology; this reflects the model's classification state and is not an indicator of the company's overall quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Wells Fargo delivered solid annual earnings growth, with net income rising 8.2% to $21.3 billion and diluted EPS expanding 16.6% to $6.26 in FY2025, supported by an ROE of 11.8% and a debt-to-equity ratio of 0.96 against a $2.1 trillion asset base. However, recent quarterly momentum has softened, with both net income and operating income peaking in 2025Q3 and declining through 2026Q1, and the absence of a macro theme assignment means the composite score of 49.8 out of 100 reflects a mixed but not alarming picture warranting further research.
Plain English
Wells Fargo is a giant bank that grew its profits and earnings per share nicely last year, but its most recent quarterly results have been slipping, and it doesn't fit into any of the big investment themes the model tracks right now, so it lands in the middle of the pack with a 'Research Further' label.
Bull Case vs. Bear Case
Bull Case
- Diluted EPS grew 16.6% year-over-year to $6.26 in FY2025, a meaningful acceleration in per-share profitability that outpaced the underlying net income growth rate.
- A debt-to-equity ratio of 0.96 and a total asset base exceeding $2.1 trillion reflect a relatively balanced leverage profile and significant institutional scale for a large bank.
- Dividends per share have risen every year from $1.10 in FY2022 to $1.70 in FY2025, demonstrating a consistent commitment to returning capital to shareholders.
Bear Case
- Both net income and operating income peaked in 2025Q3 and have declined for two consecutive quarters through 2026Q1, signaling decelerating business momentum.
- The dividend payout ratio of just 25.5% in FY2025 indicates that only a modest share of earnings is being returned to shareholders via dividends, limiting income appeal.
- Wells Fargo is not assigned to any of the 24 tracked macro themes, meaning it receives no theme-related score credit under the model's current methodology.
What Could Change the Picture
Bullish Triggers
- A reversal in the recent quarterly earnings decline — particularly a return to net income and operating income growth beyond the 2025Q3 peak — would signal renewed momentum.
- An increase in the dividend payout ratio above the current 25.5% level would suggest greater shareholder-friendly capital allocation and could improve the dividend score.
Bearish Triggers
- A continued multi-quarter decline in net income below the $5.2 billion quarterly level seen in 2026Q1 would deepen concerns about the sustainability of annual earnings growth.
- Any deterioration in the debt-to-equity ratio meaningfully above the current 0.96 level would raise questions about the bank's leverage discipline.
Red Flags
- ONE_TIME_REVIEW: 2024 OCF/NI ratio = 0.15 (OCF=3,035,000,000, NI=19,722,000,000) — possible large one-time item
- ONE_TIME_REVIEW: 2025 OCF/NI ratio = -0.89 (OCF=-19,001,000,000, NI=21,338,000,000) — possible large one-time item
Risk Profile
Low RiskWells Fargo's debt-to-equity ratio of 0.96 and $2.1 trillion asset base suggest a manageable leverage profile for a bank of its size, supporting a Low risk rating. However, the recent pattern of declining net income and operating income over the last two quarters introduces some uncertainty about near-term earnings stability.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.