US BANCORP (USB) Stock Fundamental Analysis
NYSE:USB - New York Stock Exchange, Inc. - US9029733048 - Common Stock - Currency: USD
USB gets a fundamental rating of 2 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
USB had positive earnings in the past year.
USB had a positive operating cash flow in the past year.
USB had positive earnings in each of the past 5 years.
USB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
USB's Return On Assets of 0.74% is in line compared to the rest of the industry. USB outperforms 43.22% of its industry peers.
Looking at the Return On Equity, with a value of 8.65%, USB is in line with its industry, outperforming 56.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 8.65% | ||
| 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
USB has a Profit Margin of 18.81%. This is in the lower half of the industry: USB underperforms 64.57% of its industry peers.
In the last couple of years the Profit Margin of USB has declined.
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) | 18.81% | ||
| 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.
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 11.35, which is on the high side as it means it would take USB, 11.35 years of fcf income to pay off all of its debts.
USB's Debt to FCF ratio of 11.35 is on the low side compared to the rest of the industry. USB is outperformed by 73.87% of its industry peers.
USB has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
USB has a Debt to Equity ratio of 1.33. This is amonst the worse of the industry: USB underperforms 89.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 11.35 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.16%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
USB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.87%.
The Earnings Per Share has been decreasing by -1.63% on average over the past years.
The Revenue has decreased by -2.42% in the past year.
The Revenue has been growing slightly by 3.62% on average over the past years.
EPS 1Y (TTM)-7.87%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%8.08%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%1.9%
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 7.09% on average per year.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y10.72%
EPS Next 2Y11.29%
EPS Next 3Y11.61%
EPS Next 5Y7.09%
Revenue Next Year4.34%
Revenue Next 2Y4.5%
Revenue Next 3Y4%
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.
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
USB is valuated reasonably with a Price/Earnings ratio of 11.53.
Based on the Price/Earnings ratio, USB is valued a bit cheaper than the industry average as 66.08% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of USB to the average of the S&P500 Index (29.63), we can say USB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.41, 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 67.09% of the companies are valued more expensively.
USB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, USB is valued a bit cheaper than the industry average as 67.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| 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)1.08
PEG (5Y)N/A
EPS Next 2Y11.29%
EPS Next 3Y11.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, USB is a good candidate for dividend investing.
USB's Dividend Yield is rather good when compared to the industry average which is at 3.15. USB pays more dividend than 82.91% of the companies in the same industry.
USB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of USB is nicely growing with an annual growth rate of 8.14%!
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 67.04% 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.
DP67.04%
EPS Next 2Y11.29%
EPS Next 3Y11.61%
45.87
-0.89 (-1.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.35%
Inst Owner Change2.5%
Ins Owners0.08%
Ins Owner Change2.93%
Market Cap71.56B
Analysts75
Price Target58.46 (27.45%)
Short Float %1.38%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend2.14
Dividend Growth(5Y)8.14%
DP67.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.24%
Min EPS beat(2)3.19%
Max EPS beat(2)3.29%
EPS beat(4)3
Avg EPS beat(4)1.98%
Min EPS beat(4)-0.02%
Max EPS beat(4)3.29%
EPS beat(8)6
Avg EPS beat(8)1.65%
EPS beat(12)9
Avg EPS beat(12)1.21%
EPS beat(16)12
Avg EPS beat(16)5.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-0.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)-0.36%
Revenue beat(8)0
Avg Revenue beat(8)-1.7%
Revenue beat(12)1
Avg Revenue beat(12)-1.38%
Revenue beat(16)3
Avg Revenue beat(16)-1.21%
PT rev (1m)0.49%
PT rev (3m)8.8%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.41 | ||
| P/S | 2.64 | ||
| P/FCF | 10.34 | ||
| P/OCF | 10.34 | ||
| P/B | 1.22 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.98
EY8.68%
EPS(NY)4.41
Fwd EY9.61%
FCF(TTM)4.44
FCFY9.67%
OCF(TTM)4.44
OCFY9.67%
SpS17.36
BVpS37.73
TBVpS26.15
PEG (NY)1.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 8.65% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 18.81% | ||
| GM | N/A | ||
| FCFM | 25.56% |
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-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 11.35 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 135.91% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC12.16%
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)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.87%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%8.08%
EPS Next Y10.72%
EPS Next 2Y11.29%
EPS Next 3Y11.61%
EPS Next 5Y7.09%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%1.9%
Revenue Next Year4.34%
Revenue Next 2Y4.5%
Revenue Next 3Y4%
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-53.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-53.6%
OCF growth 3YN/A
OCF growth 5YN/A