US BANCORP (USB) Stock Fundamental Analysis
NYSE:USB - New York Stock Exchange, Inc. - US9029733048 - Common Stock - Currency: USD
USB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 397 industry peers in the Banks industry. Both the profitability and financial health of USB have multiple concerns. USB has a correct valuation and a medium growth rate. USB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
USB had positive earnings in the past year.
In the past year USB had a positive cash flow from operations.
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 0.93% is in line compared to the rest of the industry. USB outperforms 58.44% of its industry peers.
Looking at the Return On Equity, with a value of 10.49%, USB is in the better half of the industry, outperforming 73.05% of the companies in the same industry.
| 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
USB's Profit Margin of 22.86% is in line compared to the rest of the industry. USB outperforms 45.09% of its industry peers.
USB's Profit Margin has declined in the last couple of years.
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) | 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.
The number of shares outstanding for USB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, USB has more shares outstanding
USB has a worse debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 9.25, USB is doing worse than 78.84% of the companies in the same industry.
A Debt/Equity ratio of 1.28 is on the high side and indicates that USB has dependencies on debt financing.
USB's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. USB is outperformed by 87.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.97%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.23% over the past year.
USB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.63% yearly.
Looking at the last year, USB shows a small growth in Revenue. The Revenue has grown by 0.08% in the last year.
The Revenue has been growing slightly by 3.62% on average over the past years.
EPS 1Y (TTM)1.23%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%14.44%
Revenue 1Y (TTM)0.08%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%3.64%
3.2 Future
The Earnings Per Share is expected to grow by 5.38% on average over the next years.
The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y9.95%
EPS Next 2Y10.21%
EPS Next 3Y10.29%
EPS Next 5Y5.38%
Revenue Next Year3.74%
Revenue Next 2Y4.17%
Revenue Next 3Y4.27%
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.
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
With a Price/Earnings ratio of 11.63, the valuation of USB can be described as very reasonable.
Based on the Price/Earnings ratio, USB is valued a bit cheaper than 64.23% of the companies in the same industry.
USB is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.88 indicates a reasonable valuation of USB.
The rest of the industry has a similar Price/Forward Earnings ratio as USB.
The average S&P500 Price/Forward Earnings ratio is at 21.74. USB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
75.31% 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 | 8.94 | ||
| 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)1.17
PEG (5Y)N/A
EPS Next 2Y10.21%
EPS Next 3Y10.29%
5. Dividend
5.1 Amount
USB has a Yearly Dividend Yield of 4.17%, which is a nice return.
Compared to an average industry Dividend Yield of 3.30, USB pays a better dividend. On top of this USB pays more dividend than 80.35% of the companies listed in the same industry.
USB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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.
USB's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP54.91%
EPS Next 2Y10.21%
EPS Next 3Y10.29%
47.78
-0.15 (-0.31%)
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 Cap74.44B
Analysts75.71
Price Target51.71 (8.23%)
Short Float %1.2%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)2.04%
PT rev (3m)-7.18%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 9.88 | ||
| P/S | 2.7 | ||
| P/FCF | 8.94 | ||
| P/OCF | 8.94 | ||
| P/B | 1.24 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY8.6%
EPS(NY)4.83
Fwd EY10.12%
FCF(TTM)5.34
FCFY11.19%
OCF(TTM)5.34
OCFY11.19%
SpS17.7
BVpS38.57
TBVpS27.06
PEG (NY)1.17
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
WACC13.97%
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)1.23%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%14.44%
EPS Next Y9.95%
EPS Next 2Y10.21%
EPS Next 3Y10.29%
EPS Next 5Y5.38%
Revenue 1Y (TTM)0.08%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%3.64%
Revenue Next Year3.74%
Revenue Next 2Y4.17%
Revenue Next 3Y4.27%
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%