US BANCORP (USB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:USB - US9029733048 - Common Stock
55.47 USD
-0.71 (-1.26%)
55.47 USD
0 (0%)
USB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. USB has a bad profitability rating. Also its financial health evaluation is rather negative. USB has a correct valuation and a medium growth rate.
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.
- Each year in the past 5 years USB has been profitable.
- USB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.98%, USB perfoms like the industry average, outperforming 58.49% of the companies in the same industry.
- USB has a better Return On Equity (10.75%) than 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.75% | ||
| ROIC | N/A |
ROA(3y)0.89%
ROA(5y)0.96%
ROE(3y)10.09%
ROE(5y)10.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of USB (24.16%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of USB has grown nicely.
- USB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 24.16% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y3.48%
PM growth 5Y4.85%
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.
- The number of shares outstanding for USB has been reduced compared to 1 year ago.
- The number of shares outstanding for USB has been increased compared to 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 7.88, which is on the high side as it means it would take USB, 7.88 years of fcf income to pay off all of its debts.
- USB's Debt to FCF ratio of 7.88 is on the low side compared to the rest of the industry. USB is outperformed by 77.02% of its industry peers.
- A Debt/Equity ratio of 1.23 is on the high side and indicates that USB has dependencies on debt financing.
- USB's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. USB is outperformed by 85.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.88 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.32%
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 16.08%, which is quite good.
- Measured over the past years, USB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.52% on average per year.
- USB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.41%.
- USB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)16.08%
EPS 3Y1.18%
EPS 5Y8.52%
EPS Q2Q%17.76%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.68%
Revenue growth 5Y4.21%
Sales Q2Q%5.13%
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 6.20% on average per year.
- The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y7.81%
EPS Next 2Y9.08%
EPS Next 3Y4.1%
EPS Next 5Y6.2%
Revenue Next Year5.31%
Revenue Next 2Y5.05%
Revenue Next 3Y4.54%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.01 indicates a correct valuation of USB.
- Compared to the rest of the industry, the Price/Earnings ratio of USB is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. USB is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.14 indicates a reasonable valuation of USB.
- USB's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. USB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, USB is valued a bit cheaper than the industry average as 76.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- USB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.54
PEG (5Y)1.41
EPS Next 2Y9.08%
EPS Next 3Y4.1%
5. Dividend
5.1 Amount
- USB has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
- USB's Dividend Yield is rather good when compared to the industry average which is at 2.61. USB pays more dividend than 80.16% of the companies in the same industry.
- USB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
- The dividend of USB has a limited annual growth rate of 4.83%.
- USB has paid a dividend for at least 10 years, which is 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
- 51.09% 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, but earnings are growing more, so the dividend growth is sustainable.
DP51.09%
EPS Next 2Y9.08%
EPS Next 3Y4.1%
US BANCORP / USB FAQ
Can you provide the ChartMill fundamental rating for US BANCORP?
ChartMill assigns a fundamental rating of 3 / 10 to USB.
What is the valuation status of US BANCORP (USB) stock?
ChartMill assigns a valuation rating of 5 / 10 to US BANCORP (USB). This can be considered as Fairly Valued.
What is the profitability of USB stock?
US BANCORP (USB) has a profitability rating of 3 / 10.
How financially healthy is US BANCORP?
The financial health rating of US BANCORP (USB) is 0 / 10.
Can you provide the dividend sustainability for USB stock?
The dividend rating of US BANCORP (USB) is 6 / 10 and the dividend payout ratio is 51.09%.