US BANCORP (USB) Stock Fundamental Analysis
NYSE:USB - New York Stock Exchange, Inc. - US9029733048 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to USB. USB was compared to 394 industry peers in the Banks industry. Both the profitability and financial health of USB have multiple concerns. USB has a decent growth rate and is not valued too expensively. USB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year USB was profitable.
In the past year USB had a positive cash flow from operations.
In the past 5 years USB has always been profitable.
USB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of USB (0.93%) is comparable to the rest of the industry.
USB has a better Return On Equity (10.49%) than 73.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 10.49% | ||
| ROIC | N/A |
ROA(3y)0.82%
ROA(5y)0.92%
ROE(3y)10.02%
ROE(5y)10.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 22.86%, USB is in line with its industry, outperforming 45.18% of the companies in the same industry.
In the last couple of years the Profit Margin of USB has declined.
The Operating Margin and Gross Margin are not available for USB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.86% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-13.56%
PM growth 5Y-5.56%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
USB does not have a ROIC to compare to the WACC, probably because it is not profitable.
USB has about the same amout of shares outstanding than it did 1 year ago.
USB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for USB is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of USB is 9.25, which is on the high side as it means it would take USB, 9.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of USB (9.25) is worse than 78.68% of its industry peers.
USB has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
USB has a worse Debt to Equity ratio (1.28) than 87.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.19%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
USB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.16%, which is quite good.
USB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.63% yearly.
The Revenue has decreased by -2.42% in the past year.
USB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.62% yearly.
EPS 1Y (TTM)8.16%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%13.27%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%2.43%
3.2 Future
Based on estimates for the next years, USB will show a small growth in Earnings Per Share. The EPS will grow by 5.38% on average per year.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y9.73%
EPS Next 2Y10.11%
EPS Next 3Y10.29%
EPS Next 5Y5.38%
Revenue Next Year3.52%
Revenue Next 2Y3.97%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.78, the valuation of USB can be described as reasonable.
USB's Price/Earnings ratio is a bit cheaper when compared to the industry. USB is cheaper than 76.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, USB is valued rather cheaply.
The Price/Forward Earnings ratio is 9.47, which indicates a very decent valuation of USB.
Based on the Price/Forward Earnings ratio, USB is valued a bit cheaper than 65.99% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of USB to the average of the S&P500 Index (36.44), we can say USB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
79.19% of the companies in the same industry are more expensive than USB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.11
PEG (5Y)N/A
EPS Next 2Y10.11%
EPS Next 3Y10.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.28%, USB is a good candidate for dividend investing.
USB's Dividend Yield is rather good when compared to the industry average which is at 3.31. USB pays more dividend than 96.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, USB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
5.2 History
The dividend of USB has a limited annual growth rate of 4.83%.
USB has been paying a dividend for at least 10 years, so it has a reliable track record.
USB has decreased its dividend recently.
Dividend Growth(5Y)4.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
54.91% of the earnings are spent on dividend by USB. This is a bit on the high side, but may be sustainable.
The dividend of USB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP54.91%
EPS Next 2Y10.11%
EPS Next 3Y10.29%
45.69
+0.48 (+1.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners81.25%
Inst Owner Change0.01%
Ins Owners0.08%
Ins Owner Change6.86%
Market Cap71.19B
Analysts75.71
Price Target54.19 (18.6%)
Short Float %1.63%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
Yearly Dividend2.21
Dividend Growth(5Y)4.83%
DP54.91%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.31%
Min EPS beat(2)0.45%
Max EPS beat(2)4.16%
EPS beat(4)4
Avg EPS beat(4)2.77%
Min EPS beat(4)0.45%
Max EPS beat(4)4.16%
EPS beat(8)6
Avg EPS beat(8)1.65%
EPS beat(12)10
Avg EPS beat(12)1.57%
EPS beat(16)13
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)-0.36%
Revenue beat(8)0
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.27%
Revenue beat(16)3
Avg Revenue beat(16)-1.03%
PT rev (1m)1.09%
PT rev (3m)-7.18%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-0.59%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 9.47 | ||
| P/S | 2.58 | ||
| P/FCF | 8.55 | ||
| P/OCF | 8.55 | ||
| P/B | 1.18 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.24
EY9.28%
EPS(NY)4.83
Fwd EY10.56%
FCF(TTM)5.34
FCFY11.7%
OCF(TTM)5.34
OCFY11.7%
SpS17.7
BVpS38.57
TBVpS27.06
PEG (NY)1.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 10.49% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.86% | ||
| GM | N/A | ||
| FCFM | 30.19% |
ROA(3y)0.82%
ROA(5y)0.92%
ROE(3y)10.02%
ROE(5y)10.52%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-13.56%
PM growth 5Y-5.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 132.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC14.19%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)247.31%
Profit Quality(5y)190.42%
High Growth Momentum
Growth
EPS 1Y (TTM)8.16%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%13.27%
EPS Next Y9.73%
EPS Next 2Y10.11%
EPS Next 3Y10.29%
EPS Next 5Y5.38%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%2.43%
Revenue Next Year3.52%
Revenue Next 2Y3.97%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-38.25%
FCF growth 3Y4.53%
FCF growth 5Y18.19%
OCF growth 1Y-38.25%
OCF growth 3Y4.53%
OCF growth 5Y18.19%