US BANCORP (USB) Stock Fundamental Analysis
USA - NYSE:USB - US9029733048 - Common Stock
47.32 USD
+0.47 (+1%)
47.34 USD
+0.02 (+0.04%)
We assign a fundamental rating of 3 out of 10 to USB. USB was compared to 390 industry peers in the Banks industry. Both the profitability and financial health of USB have multiple concerns. USB has a decent growth rate and is not valued too expensively. Finally USB also has an excellent dividend rating.
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.
Each year in the past 5 years USB had a positive operating cash flow.
1.2 Ratios
USB's Return On Assets of 0.95% is in line compared to the rest of the industry. USB outperforms 59.23% of its industry peers.
USB has a better Return On Equity (10.61%) than 72.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 10.61% | ||
| 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 23.52% is in line compared to the rest of the industry. USB outperforms 49.23% 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) | 23.52% | ||
| 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.
USB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, USB has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of USB is 10.56, which is on the high side as it means it would take USB, 10.56 years of fcf income to pay off all of its debts.
USB has a Debt to FCF ratio of 10.56. This is in the lower half of the industry: USB underperforms 77.95% of its industry peers.
USB has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
USB has a Debt to Equity ratio of 1.29. This is amonst the worse of the industry: USB underperforms 86.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 10.56 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.78%
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 13.59%, which is quite good.
USB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.63% yearly.
The Revenue has been growing slightly by 4.04% in the past year.
The Revenue has been growing slightly by 3.62% on average over the past years.
EPS 1Y (TTM)13.59%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%18.45%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%6.83%
3.2 Future
The Earnings Per Share is expected to grow by 5.33% on average over the next years.
Based on estimates for the next years, USB will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y14.72%
EPS Next 2Y11.58%
EPS Next 3Y11.5%
EPS Next 5Y5.33%
Revenue Next Year3.84%
Revenue Next 2Y4.11%
Revenue Next 3Y4.3%
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 10.68, 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 65.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, USB is valued rather cheaply.
A Price/Forward Earnings ratio of 9.55 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 32.68. USB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
USB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. USB is cheaper than 68.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.84 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y11.58%
EPS Next 3Y11.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, USB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.38, USB pays a better dividend. On top of this USB pays more dividend than 83.33% 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 | 4.44% |
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.
The dividend of USB decreased recently.
Dividend Growth(5Y)4.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
USB pays out 53.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of USB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP53.24%
EPS Next 2Y11.58%
EPS Next 3Y11.5%
47.32
+0.47 (+1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners82.28%
Inst Owner Change-0.29%
Ins Owners0.07%
Ins Owner Change-0.62%
Market Cap73.64B
Revenue(TTM)28.18B
Net Income(TTM)6.52B
Analysts76.55
Price Target56.68 (19.78%)
Short Float %1.09%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend2.21
Dividend Growth(5Y)4.83%
DP53.24%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.5%
Min EPS beat(2)2.83%
Max EPS beat(2)4.16%
EPS beat(4)4
Avg EPS beat(4)2.66%
Min EPS beat(4)0.45%
Max EPS beat(4)4.16%
EPS beat(8)7
Avg EPS beat(8)2.16%
EPS beat(12)10
Avg EPS beat(12)1.72%
EPS beat(16)13
Avg EPS beat(16)2.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)-0.76%
Revenue beat(8)0
Avg Revenue beat(8)-1.26%
Revenue beat(12)0
Avg Revenue beat(12)-1.49%
Revenue beat(16)2
Avg Revenue beat(16)-1.24%
PT rev (1m)3.68%
PT rev (3m)4.61%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)3%
EPS NY rev (3m)4.54%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.55 | ||
| P/S | 2.66 | ||
| P/FCF | 9.84 | ||
| P/OCF | 9.84 | ||
| P/B | 1.2 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.43
EY9.36%
EPS(NY)4.96
Fwd EY10.47%
FCF(TTM)4.81
FCFY10.16%
OCF(TTM)4.81
OCFY10.16%
SpS17.81
BVpS39.48
TBVpS27.96
PEG (NY)0.73
PEG (5Y)N/A
Graham Number62.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 10.61% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.52% | ||
| GM | N/A | ||
| FCFM | 27% |
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.29 | ||
| Debt/FCF | 10.56 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 114.82% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC13.78%
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)13.59%
EPS 3Y-7.93%
EPS 5Y-1.63%
EPS Q2Q%18.45%
EPS Next Y14.72%
EPS Next 2Y11.58%
EPS Next 3Y11.5%
EPS Next 5Y5.33%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%6.83%
Revenue Next Year3.84%
Revenue Next 2Y4.11%
Revenue Next 3Y4.3%
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-48.57%
FCF growth 3Y4.53%
FCF growth 5Y18.19%
OCF growth 1Y-48.57%
OCF growth 3Y4.53%
OCF growth 5Y18.19%
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 for USB stock?
ChartMill assigns a valuation rating of 6 / 10 to US BANCORP (USB). This can be considered as Fairly Valued.
How profitable is US BANCORP (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.
What is the earnings growth outlook for US BANCORP?
The Earnings per Share (EPS) of US BANCORP (USB) is expected to grow by 14.72% in the next year.