US BANCORP (USB)
US9029733048 - Common Stock
USB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 404 industry peers in the Banks industry. Both the profitability and financial health of USB have multiple concerns. USB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year USB was profitable.
USB had a positive operating cash flow in the past year.
Each year in the past 5 years USB has been profitable.
In the past 5 years USB always reported a positive cash flow from operatings.
1.2 Ratios
USB's Return On Assets of 0.72% is in line compared to the rest of the industry. USB outperforms 43.64% of its industry peers.
USB's Return On Equity of 8.69% is in line compared to the rest of the industry. USB outperforms 55.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 8.69% | ||
| ROIC | N/A |
ROA(3y)0.97%
ROA(5y)1.01%
ROE(3y)11.27%
ROE(5y)11.04%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 18.00%, USB is doing worse than 67.08% 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) | 18% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-3.23%
PM growth 5Y-9.75%
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.
Compared to 1 year ago, USB has more shares outstanding
USB has less shares outstanding than it did 5 years ago.
USB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of USB is 7.05, which is on the high side as it means it would take USB, 7.05 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.05, USB is not doing good in the industry: 70.82% of the companies in the same industry are doing better.
USB has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.23, USB is doing worse than 87.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.05 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.06%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for USB have decreased strongly by -13.91% in the last year.
USB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.05% yearly.
The Revenue has decreased by -1.92% in the past year.
Measured over the past years, USB shows a small growth in Revenue. The Revenue has been growing by 4.46% on average per year.
EPS 1Y (TTM)-13.91%
EPS 3Y12.06%
EPS 5Y1.05%
EPS Q2Q%-1.9%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y6.45%
Revenue growth 5Y4.46%
Sales Q2Q%-2.39%
3.2 Future
The Earnings Per Share is expected to grow by 3.38% on average over the next years.
The Revenue is expected to grow by 1.89% on average over the next years.
EPS Next Y-7.59%
EPS Next 2Y0.58%
EPS Next 3Y4.36%
EPS Next 5Y3.38%
Revenue Next Year-2.77%
Revenue Next 2Y0.77%
Revenue Next 3Y1.89%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.18 indicates a correct valuation of USB.
USB's Price/Earnings is on the same level as the industry average.
USB is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.76, the valuation of USB can be described as reasonable.
Based on the Price/Forward Earnings ratio, USB is valued a bit cheaper than the industry average as 62.34% of the companies are valued more expensively.
USB is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
83.04% 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 | 8.16 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)12.54
EPS Next 2Y0.58%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
USB has a Yearly Dividend Yield of 3.98%.
USB's Dividend Yield is rather good when compared to the industry average which is at 3.02. USB pays more dividend than 82.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, USB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
On average, the dividend of USB grows each year by 8.14%, which is quite nice.
USB has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
USB pays out 68.99% of its income as dividend. This is not a sustainable payout ratio.
The dividend of USB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.99%
EPS Next 2Y0.58%
EPS Next 3Y4.36%
US BANCORP
NYSE:USB (11/21/2024, 5:49:35 PM)
After market: 51.39 0 (0%)51.39
+0.65 (+1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap80.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 11.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)12.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 8.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 18% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.91%
EPS 3Y12.06%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y6.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y