US BANCORP (USB) Stock Fundamental Analysis
NYSE:USB - New York Stock Exchange, Inc. - US9029733048 - Common Stock - Currency: USD
Taking everything into account, USB scores 3 out of 10 in our fundamental rating. USB was compared to 396 industry peers in the Banks industry. USB may be in some trouble as it scores bad on both profitability and health. USB has a correct valuation and a medium growth rate. Finally USB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year USB was profitable.
USB had a positive operating cash flow in the past year.
In the past 5 years USB has always been profitable.
In the past 5 years USB always reported a positive cash flow from operatings.
1.2 Ratios
USB has a Return On Assets (0.93%) which is in line with its industry peers.
With a decent Return On Equity value of 10.49%, USB is doing good in 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
Looking at the Profit Margin, with a value of 22.86%, USB is in line with its industry, outperforming 45.09% 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.
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
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 78.84% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that USB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.28, USB is doing worse than 87.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.92%
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.
The Earnings Per Share has been decreasing by -1.63% on average over the past years.
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.
USB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
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.
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
With a Price/Earnings ratio of 11.66, the valuation of USB can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of USB indicates a somewhat cheap valuation: USB is cheaper than 67.00% of the companies listed in the same industry.
USB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 9.92, which indicates a very decent valuation of USB.
The rest of the industry has a similar Price/Forward Earnings ratio as USB.
When comparing the Price/Forward Earnings ratio of USB to the average of the S&P500 Index (21.90), we can say USB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 9.92 |
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 | 8.97 | ||
| 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.
USB's Dividend Yield is rather good when compared to the industry average which is at 3.40. USB pays more dividend than 80.35% of the companies in the same industry.
USB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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.
The dividend of USB decreased recently.
Dividend Growth(5Y)4.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
USB pays out 54.91% of its income as dividend. 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%
47.93
+0.44 (+0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners81.25%
Inst Owner Change-56.24%
Ins Owners0.08%
Ins Owner Change6.86%
Market Cap74.68B
Analysts75.71
Price Target51.71 (7.89%)
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 | 11.66 | ||
| Fwd PE | 9.92 | ||
| P/S | 2.71 | ||
| P/FCF | 8.97 | ||
| P/OCF | 8.97 | ||
| P/B | 1.24 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY8.58%
EPS(NY)4.83
Fwd EY10.09%
FCF(TTM)5.34
FCFY11.15%
OCF(TTM)5.34
OCFY11.15%
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
WACC13.92%
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%