WFCNEUTRAL

Return on Equity (ROE)

12.0%

Updated 128h ago

Sector Performance

44th percentile

WFC

12.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Wells Fargo’s Return on Equity (ROE) of 12.0% means that for every dollar of shareholders’ equity, the company generated $0.12 in profit over the past year.

This trails the sector median of 13.8%, placing WFC in the 44th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a +1.7% improvement from the prior quarter’s 11.8%. The combination of an ROE below the sector median alongside a recent uptick points to modest improvement that still leaves the company behind its competitors, suggesting a tempered risk profile rather than a clear opportunity. The NEUTRAL overall verdict is supported because the metric is below average yet showing short-term progress, offering neither a strong reason to buy nor a clear red flag.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about WFC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are WFC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.