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http://www.forbes.com/2011/04/20/global-2000-11-global-high-performers_slide.html. Compute ROI, economic profit and economic value added.

Compare to industry averages or to another company, in the same industry, not identified a Global High Performer. Present a 7-10 minute PowerPoint presentation based on this analysis. The presentation must include the following: The numerical results of your ratio analysis. An analysis of your findings.

Wells Fargo & Co WFC Global High Performer Wells Fargo and Companies Wells Fargo & CO New (NYSE: WFC)
$27.33 $0.531.98% 06/17/2011 4:00PM ET BATS Exchange Real-Time Market Data by Xignite USD Wells Fargo & Company (NYSE:WFC), is the fourth largest bank holding company in the United States.[1] Wells Fargo & Company is best classified as a diversified financial services company, and with over 80 distinct businesses, Wells Fargo offers a full range of financial products and services and targets all types of clients, from individuals to large corporations in all 50 states as well as the District of Columbia. In 2010, Wells Fargo earned a total of $85 billion in total revenues and a net income of $12.4 billion.[2] Wells Fargo became the nation's largest mortgage lender and the second-largest diversified financial services firm in the United States in term of deposits after acquiring Wachovia (WB).[3][4] There was a legal dispute with the deal however, as Citigroup had sought to acquire Wachovia as well. Wells Fargo and Citigroup reached a settlement, with Wells Fargo paying Citigroup $100 million to settle the lawsuits.[5] Wells Fargo's sold $12.6 billion in common stock and $25 billion in preferred stock to the US Government through former U.S. Treasury Secretary Paulson's $700B Troubled Assets Relief Program (TARP) as part of the deal to raise enough cash for the acquisition.[6][7][8] Company Overview Like virtually all major banks, Wells Fargo has been negatively impacted by the credit crunch and the subsequent economic decline. However, unlike many other banks, Wells Fargo has not been forced to write down large losses on its assets. Despite this, the Standard & Poor's Rating Service downgraded Wells Fargo from its AAA rating to AA+ after its acquisition of Wachovia.[3]

Wells Fargo raised $12.25 billion in a stock sale to help repay the $25 billion in Troubled Assets Relief Program (TARP) money that it received from the government during the Financial Crisis.[9] Although this diluted Wells Fargo's shares by approximately ten percent, it allows the bank to avoid paying an annual dividend to the government of $1.25 billion and frees it of government oversight, making it more flexible. Business and Financial Metrics In 2010, Wells Fargo earned a total of $85 billion in total revenues, a decline from its 2009 total revenues of $89 billion.[2] Despite the decrease in total revenues, Wells Fargo was able to increase its net income from $12.3 billion in 2009 to $12.4 billion in 2010.[2] Business Segments Wells Fargo separates its businesses into three main segments for revenue reporting purposes: i) Community Banking, ii) Wholesale Banking, and iii) Wealth, Brokerage, and Retirement. Prior to 2009, the Brokerage and Retirement segment was named Wells Fargo Financial. Community Banking Wells Fargo's Community Banking business serves small business clients (with up to $20 million in annual sales) as well as retail customers and high-net-worth individuals, providing them with a wide range of services such as investment, insurance and trust services, among others. It offers its products through a variety of channels, including the company's regional banking branches, over 6,700 ATMs, website, and telephone banking service. Wells Fargo began reporting Wells Fargo Financial under Community Banking. Wells Fargo's substantial credit card business now lies under Community Banking, and it has issued over 7.7 million credit cards and over 20 million debit cards, making it the second largest debit card issuer in the U.S.[10] As a credit card issuer, it charges interchange fees (fees charged to merchants who accept credit cards), interest on outstanding customer balances, and a variety of other fees charged to customers, such as late or missing payment fees, exceeding the card's credit limit, and monthly or annual membership fees. Wells Fargo also has costs related to credit cards, such as interest expense (Wells Fargo generally borrows the money that it lends to credit card customers), fraud, and rewards (in order to compete with each other, banks offer cash-back rewards and bonus point systems to lure customers; these generate costs that the credit card issuer must bear). Wholesale Banking Wells Fargo's Wholesale Banking Group serves the company's business clients with annual sales exceeding $10 million. Wholesale Banking is responsible for a line of corporate, commercial, and real estate banking products and services, including institutional investments, employee benefit trusts, investment banking, construction loans, and insurance. After the Wachovia Bank acquisition, Wells Fargo was able to expand its product services to include investment banking, equity trading, fixedincome sales and trading, and equity and fixed-income research, among others.

Wealth, Brokerage, and Retirement Wells Fargo's Wealth, Brokerage, and Retirement segment provides a full range of financial services to high net worth and affluent individuals. The products offered by this segment include financial planning, private banking, credit, investment management, trust and estate services, and business succession planning, among others.[11] Trends and Forces Wells Fargo has teamed up with Visa (V) to pilot test mobile payments system Wells Fargo announced that it has teamed up with Visa to pilot test a mobile payments system using smartphones such as the iPhone and Blackberry. The pilot will be conducted by 200 employees of Wells Fargo in San Francisco, where both Visa and Wells Fargo are headquartered.[12] This announcement came shortly after three of the largest telecom carriers (AT&T (T), Verizon Communications (VZ), and TMobile announced a joint venture for mobile payments. The upcoming struggle for mobile payments dominance between credit card companies and telecom companies may have huge implications for future earnings as this market begins to develop. Effects of housing market slowdown Wells Fargo's mortgage lending business was hit by slow growth and falling residential real estate prices. The economy as a whole experienced the "home equity effect", where homeowners perceive their house values to be lower than they anticipated, and therefore perceive themselves to be relatively less wealthy. As a result, consumers spend and consume less. The number of total housing starts has fallen 63% since peak levels during the end of the housing boom.[13] Wells Fargo Home Mortgages have taken a setback, with higher provisions for credit losses offsetting revenue growth. However, Wells Fargo has been dealing with the mortgage setbacks relatively well due to its wide diversification in product offerings, which allows the company to compensate for poor performance in the home mortgage business. Subprime bust avoidance The housing slowdown is often attributed to the collapse of the subprime lending market. Subprime lending, or lending money to customers with poor credit scores (riskier borrowers), can lead to higher loan losses in harsh economic climates or during periods of stagnant or falling housing prices. As customers find themselves unable to make their debt payments, which are higher than average to begin with, defaults rise. Wells Fargo has fared better than most competitors in the mortgage business, mainly because its mortgages are predominately prime and near-prime. As a result, Wells Fargo has not experienced high rates of default seen in the subprime market. Wells Fargo has avoided much of these losses by deciding not to extend or purchase option adjustable rate mortgages (option ARMs). However, Wachovia Bank, which was acquired by Wells Fargo, took part in Option ARMs and subprime lending.

Potential implementation of "Financial Crisis Responsibility Fee" Obama announced a plan to tax the largest banks and financial institutions to recover TARP funds that the government used to bailout many of the banks. The proposed plan calls for a 0.15% tax on each firm's liabilities, excluding Tier 1 capital and those already insured by the FDIC, with the goal of raising $90 billion over ten years.[14] However, the financial institutions subject to this fee are limited to only those with over $50 billion in assets. If this plan gets passed into law, it could represent a substantial cost to Wells Fargo for up to ten years. Competition With 6,795 branches and $760 billion in total domestic deposits, Wells Fargo has the most offices and the second most deposits in the United States.[15] Since Wells Fargo 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). Wells Fargo's lack of international exposure contrasts with these top competitors. Although Wells Fargo holds assets overseas, its remains strongly focused on the United States domestic market. While this does allow Wells Fargo to focus its resources on gaining greater market share within the U.S., Wells Fargo is thereby more vulnerable to the U.S. economic cycles, as it does not have foreign markets to buffer domestic performance. Bank of America (BAC) is the world's leading bank and financial holding company with over $907 billion in deposits and 6,238 offices within the United States.[15] JP Morgan Chase (JPM) is one of the world's largest financial services companies, offering both investment banking as well as commercial banking. It has the third most deposits in the United States with $640 billion.[15] Citigroup (C), another of the commercial banking giants, ranks fourth in the United States in terms of deposits with $321 billion.[15] Corporate DNA Wells Fargo is the end result of more than 2000 mergers. The holding company was previously known as Norwest National bank and before that Northwest National Bank. Norwest was the numerically the most aquistive bank in the 1980's. Most of the management and the business model of the present day Wells Fargo come from Norwest Bank, and the stock history of Wells Fargo is that of Norwest bank. History Henry Wells and William Fargo founded Wells Fargo & Co. in 1852 as a stagecoach and banking company during the California Gold Rush. Its major focus was its express business until World War I, when the U.S. government nationalized the express business; the company then shifted its focus to financial services. The stagecoach still appears prominently in Wells Fargo advertising and brand image. The main pioneer of the Wells Fargo Bank was I.W. Hellman.

The current CEO is Richard Kovacevich.

Lines of Business Wells Fargo contains more then 80 lines of businesses. Their results are reported in three segments: Retail Banking (Which is financial services for consumers), Wholesale Banking (which is financial services for corporations and certain services which are sold wholesale to consumers), and Consumer Finance. The major businesses and products offered are: Banking Credit Cards Home Mortage Consumer Finance Stock Brokerage Student Loans Insurance Brokerage Venture Capital Mutual Funds Private Bank Asset based lending All of the consumer products are offered through the Wells Fargo Bank branches in the western states, but the company also has standalone mortgage and consumer finance branches in all of the US. It has been one of the largest mortgage companies of the past twenty years.

Wells Fargo (NYSE: WFC) is a diversified financial services company in the United States, with consumer finance subsidiaries doing business in Canada, the Northern Mariana Islands and the Caribbean. Headquarted in San Francisco, Wells Fargo is a result of the acquisition of California-based Wells Fargo & Co. by Minneapolis-based Norwest Corporation in 1998. Norwest changed its name to Wells Fargo by the start of 2000.

Industry: Money Center Banks Growth Rates % Sales (Qtr vs year ago qtr) Net Income (YTD vs YTD) Company Industry S&P 500 -5.70 50.50 1.90 27.50 31.50 6.00 7.50 -7.86 12.00 15.60 59.80 7.95 7.99 5.31

Net Income (Qtr vs year ago qtr) 50.50 Sales (5-Year Annual Avg.) 15.25

Net Income (5-Year Annual Avg.) 8.68 Dividends (5-Year Annual Avg.) -27.52

Financial data in U.S. dollars

Price Ratios Current P/E Ratio

Company Industry S&P 500 11.3 11.3 11.7 2.2 2.29 1.23 9.70 19.0 21.5 3.3 2.17 3.57 15.10

P/E Ratio 5-Year High NA P/E Ratio 5-Year Low NA Price/Sales Ratio Price/Book Value 1.72 1.19

Price/Cash Flow Ratio 9.80 Financial data in U.S. dollars

Profit Margins % Gross Margin Pre-Tax Margin Net Profit Margin 5Yr Gross Margin (5-Year Avg.) 5Yr PreTax Margin (5-Year Avg.)

Company Industry S&P 500 NA 24.2 16.5 NA 22.3 0.0 25.6 18.7 0.0 20.6 15.4 39.0 17.4 12.8 38.8 15.5 11

5Yr Net Profit Margin (5-Year Avg.) 15.4

Financial Condition Company Industry S&P 500 Debt/Equity Ratio 1.52 3.56 1.18

Financial Condition Company Industry S&P 500 Current Ratio Quick Ratio Interest Coverage Leverage Ratio NA NA NA 9.3 NA NA 0.0 17.1 34.10 1.4 1.0 83.5 3.8 25.34

Book Value/Share 25.18

Investment Returns % Return On Equity Return On Assets Return On Capital

Company Industry S&P 500 11.2 1.1 NA 13.4 0.8 0.0 9.1 0.6 0.0 23.5 8.3 10.9 19.7 7.7 10.2

Return On Equity (5-Year Avg.) 11.2 Return On Assets (5-Year Avg.) 1.0 Return On Capital (5-Year Avg.) NA Financial data in U.S. dollars

Management Efficiency Company Industry S&P 500 Income/Employee Revenue/Employee Receivable Turnover Inventory Turnover Asset Turnover 46,943 69,586 112,380

315,885 376,278 989,043 NA NA NA 0.0 NA 0.0 14.5 11.8 0.8

Financial data in U.S. dollars

Avg P/E 12/10 12.80 12/09 13.40 12/08 42.00 12/07 14.60 12/06 13.80 12/05 13.50 12/04 14.30

Price/ Sales 1.75 1.25 1.94 1.90 2.53 2.65 3.14

Price/ Book 1.29 1.25 1.26 2.09 2.62 2.59 2.78

Net Profit Margin (%) 22.0 14.2 6.8 22.9 26.1 29.5 33.5

Avg P/E 12/03 13.80 12/02 14.70 12/01 23.40

Price/ Sales 3.14 2.76 2.71

Price/ Book 2.90 2.61 2.71

Net Profit Margin (%) 31.9 30.9 18.1

Book Value/ Share Debt/ Equity Return on Equity (%) Return on Assets (%) Interest Coverage 12/10 $24.02 12/09 $21.59 12/08 $23.43 12/07 $14.45 12/06 $13.57 12/05 $12.12 12/04 $11.17 12/03 $10.15 12/02 $8.99 12/01 $8.03 1.68 2.17 3.79 3.17 2.17 2.55 2.52 2.56 2.76 2.80 9.8 11.0 2.7 16.9 18.4 18.9 18.5 18.0 18.8 12.5 NA NA 0.2 1.4 1.7 1.6 1.6 1.6 1.6 1.1 3.4 2.8 1.3 1.8 2.0 2.5 3.8 3.8 3.2 1.8

Financial data in U.S. dollars

2010 Period End Date Period Length Stmt Source Stmt Source Date Stmt Update Type

2009

2008

2007

2006

12/31/201012/31/200912/31/200812/31/200712/31/2006 12 Months 12 Months 12 Months 12 Months 12 Months 10-K 10-K 10-K 10-K 10-K

02/25/201102/26/201002/26/201002/26/201002/29/2008 Updated Updated Reclassified Reclassified Restated

Interest Income, Bank Interest & Fees on Loans Interest & Dividends on Investment Securities Other Interest Income Trading Account Interest Total Interest Expense Interest on Deposit Interest on Other Borrowings Non-Interest Income, Bank Fees & Commissions from Operations Commissions & Fees from Securities Activities Insurance Commissions, Fees & Premiums Credit Card Fees Fees for Other Customer Services Investment Securities Gains Other Revenue Total Revenue

52,796.0

56,274.0

34,898.0

35,177.0

32,239.0

8,039.0

9,950.0

9,755.0

14,203.0

12,288.0

40,453.0

42,362.0

16,734.0

18,546.0

15,740.0

93,249.0

98,636.0

51,632.0

53,723.0

47,979.0

Loan Loss Provision Non-Interest Expense, Bank

15,753.0 50,456.0

21,668.0 49,020.0

15,979.0 22,598.0

4,939.0 22,746.0

2,204.0 20,837.0

Labor & Related Expenses Amortization of Intangibles Other Expense Income Before Tax 19,001.0 17,998.0 3,300.0 11,835.0 12,650.0

Income Tax - Total Income After Tax

6,338.0 12,663.0

5,331.0 12,667.0

602.0 2,698.0

3,570.0 8,265.0

4,230.0 8,420.0

Minority Interest Equity In Affiliates U.S. GAAP Adjustment Net Income Before Extra. Items

-301.0 0.0 0.0 12,362.0

-392.0 0.0 0.0 12,275.0

-43.0 0.0 0.0 2,655.0

-208.0 0.0 0.0 8,057.0

0.0 0.0 0.0 8,420.0

Total Extraordinary Items Net Income

0.0 12,362.0

0.0 12,275.0

0.0 2,655.0

0.0 8,057.0

0.0 8,420.0

Total Adjustments to Net Income Preferred Dividends General Partners' Distributions

-730.0

-4,285.0

-286.0

0.0

0.0

Basic Weighted Average Shares Basic EPS Excluding Extraordinary

5,226.8 2.23

4,545.2 1.76

3,378.1 0.7

3,348.5 2.41

3,368.3 2.5

Items Basic EPS Including Extraordinary Items 2.23 1.76 0.7 2.41 2.5

Diluted Weighted Average Shares Diluted EPS Excluding Extrordinary Items Diluted EPS Including Extraordinary Items

5,263.1 2.21

4,562.7 1.75

3,391.3 0.7

3,382.8 2.38

3,410.1 2.47

2.21

1.75

0.7

2.38

2.47

Dividends per Share - Common Stock 0.2 Primary Issue Gross Dividends - Common Stock Depreciation, Supplemental Normalized Income Before Tax Normalized Income After Taxes Normalized Income Available to Common 1,045.0 1,500.0 19,673.0

0.49

1.3

1.18

1.08

2,125.0 1,300.0 19,665.0

4,312.0 861.0 3,300.0

3,955.0 828.0 11,835.0 8,265.0 8,057.0

3,641.0 737.0 12,650.0 8,420.0 8,420.0

13,110.85 13,840.24 2,698.0 12,079.85 9,163.24 2,369.0

Basic Normalized EPS Diluted Normalized EPS Amortization of Intangibles

2.31 2.3 2,434.0

2.02 2.01 2,856.0

0.7 0.7 261.0

2.41 2.38 229.0

2.5 2.47 212.0

Financial data in U.S. Dollars Values in Millions (Except for per share items) Business Type: Bank Financial statements are prepared in this standard format to allow direct comparisons of all companies and industries across multiple time frames.

See 10K and 10Q SEC Filings for as reported statements

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DATA PROVIDERS Copyright 2011 Microsoft. All rights reserved. Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges

STOCK ACTIVITY Last Price 52-Wk High 52-Wk Low Volume Avg Daily Vol (13 Wks) 27.33 34.25 23.02 46.54 Mil 35.83 Mil

50-Day Moving Average 28.37 200-Day Moving Average 29.17 Volatility (beta)

1.35

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STOCK PRICE HISTORY Change Relative Strength Last 3 Mos -14.10% 27 Last 6 Mos -8.80% 40

Change Relative Strength Last 12 Mos -2.20% 40

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FINANCIALS Last 12 Mos 5-Yr Growth Sales Income 52.04 Bil 12.83 Bil 15.25% 8.68% -27.52% 2.80%

Dividend Rate 0.48 Dividend Yield 1.76%

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COMPANY INFORMATION Stock: Industry: Wells Fargo & Company Money Center Banks

Exchange: NYSE Employees: 270,200

FUNDAMENTAL DATA Debt/Equity Ratio Gross Margin Net Profit Margin Shares Outstanding Market Cap EPS 1.52 NA 16.50% 5.29 Bil 144.55 Bil 2.42

Institutional Ownership 76.40%

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STOCKSCOUTER 9 Rating: 9 out of 10 How StockScouter Works Analyst Recommendation: Moderate Buy EARNINGS ESTIMATE Qtr(6/11) FY(12/11) FY(12/12) 0.68 2.76 3.45

Current P/E 11.25 Forward P/E 7.92

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COMPANY ADDRESS 420 Montgomery Street

SAN FRANCISCO 866-2493302 https://www.wellsfargo.com/

CA 94163

DESCRIPTION Wells Fargo & Company (Wells Fargo) is a diversified financial services company. The Company provides banking, insurance, investments, mortgage banking, investment banking, retail banking, brokerage, and consumer finance through banking stores, the Internet and other distribution channels to consumers,

businesses and institutions in 50 states, the District of Columbia, and in other countries. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. The Company provides other financial services through subsidiaries engaged in various businesses, principally: wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment.

DATA PROVIDERS Copyright 2011 Microsoft. All rights reserved. Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges. Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations data provided by Zacks Investment Research. StockScouter data provided by Gradient Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Telekurs.

Type Slogan Founded

Public (NYSE: WFC) "The Next Stage" Minneapolis, Minnesota (1920) San Francisco, California Richard Kovacevich, Chairman and CEO John Stumpf, head of Community Banking Group David Hoyt, head of

Location Key people

Financials Dec. 2010 2010 1. Revenue USD Mil. 85,210 Sales % -3.9 2. Net Income USD Mil. 12,362 Earnings/Share % 26.3 3. Earnings per share USD Mil 2.21 Book Value/ Share % 12.1 4. Dividends USD 0.20 Dividends/ Share % -59.2 5. Shares Mil 5,263 6. Book value Per Share USD 22.37 7. Operating Cash Flow USD Mil 18,772 8. Free Cash Flow USD Mil -2,260 9. Tax Rate % 33.36 10. Net Margin % 13.65 11. Asset Turnover (Average) 0.07 12. Return on Assets % 0.93 13. Financial Leverage (Average) 10.69 14. Return on Equity % 10.53 15. Return on Invested Capital % 3.44 16. Cash & short-term Investments 1.36 17. Accounts Receivable 18. Net PP&E 0.77 19. Intangibles 3.23 20. Short-Term Debt 4.40 21. Total Liabilities 89.95 22. Total Stockholders Equity 10.05 23. Financial Leverage 10.69 24. Debt/ Equity 1.33 S&P 500 0.9 25. Long-term Debt $ Mil 156,983 26. Total Equity $ Mil 126,408 27. Financial Leverage 10.7 S&P 500 4.5 28. Income Tax $ Mil 6,338 29. Net Income 12,362 30. Earnings/ Share 2.21

Wholesale Banking Group Robert Atkins, CFO Dr. Sung Won Sohn, Chief Economist Employees 144,000 (2004) Products Checking Accounts Insurance Brokerage Stock Brokerage Asset Management Asset Based Lending Consumer Finance www.wellsfargo.com

Web site

31. 32. 33. 34. 35. 36. 37.

EPS (cont Ops) $ Dividends/ Share $ Total Shares Mil Operating Cash Flow Capital spending Free Cash Flow Cash

2.20 0.20 5,263 18,772 - = -2,260