US BANCORP (USB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:USB - US9029733048 - Common Stock
56.08 USD
+0.59 (+1.06%)
56.12 USD
+0.04 (+0.07%)
We assign a fundamental rating of 3 out of 10 to USB. USB was compared to 387 industry peers in the Banks industry. USB may be in some trouble as it scores bad on both profitability and health. USB is not valued too expensively and it also shows a decent growth rate.
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.
USB had positive earnings in each of the past 5 years.
Each year in the past 5 years USB had a positive operating cash flow.
1.2 Ratios
USB has a Return On Assets (0.98%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.75%, USB is in the better half of the industry, outperforming 72.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.75% | ||
| 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 (24.16%) which is in line with 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) | 24.16% | ||
| 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.
Compared to 1 year ago, USB has about the same amount of shares outstanding.
USB has more shares outstanding than it did 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 7.88, which is on the high side as it means it would take USB, 7.88 years of fcf income to pay off all of its debts.
USB has a worse Debt to FCF ratio (7.88) than 77.00% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that USB has dependencies on debt financing.
With a Debt to Equity ratio value of 1.23, USB is not doing good in the industry: 86.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.88 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.25%
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 grown by an nice 13.59% 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.
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
Based on estimates for the next years, USB will show a small growth in Earnings Per Share. The EPS will grow by 7.43% on average per year.
The Revenue is expected to grow by 4.40% on average over the next years.
EPS Next Y15.19%
EPS Next 2Y11.77%
EPS Next 3Y11.54%
EPS Next 5Y7.43%
Revenue Next Year4.05%
Revenue Next 2Y4.29%
Revenue Next 3Y4.4%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.66, the valuation of USB can be described as correct.
USB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of USB to the average of the S&P500 Index (27.17), we can say USB is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.28, the valuation of USB can be described as very reasonable.
USB's Price/Forward Earnings is on the same level as the industry average.
USB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, USB is valued a bit cheaper than 75.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
USB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y11.77%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
USB has a Yearly Dividend Yield of 3.90%. Purely for dividend investing, there may be better candidates out there.
USB's Dividend Yield is a higher than the industry average which is at 2.78.
Compared to an average S&P500 Dividend Yield of 1.94, USB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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
51.09% of the earnings are spent on dividend by USB. This is a bit on the high side, but may be sustainable.
The dividend of USB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.09%
EPS Next 2Y11.77%
EPS Next 3Y11.54%
56.08
+0.59 (+1.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners81.43%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change-0.62%
Market Cap87.27B
Revenue(TTM)28.18B
Net Income(TTM)6.81B
Analysts76.55
Price Target58.55 (4.4%)
Short Float %1.4%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend2.21
Dividend Growth(5Y)4.83%
DP51.09%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.11%
Min EPS beat(2)2.83%
Max EPS beat(2)7.4%
EPS beat(4)4
Avg EPS beat(4)3.71%
Min EPS beat(4)0.45%
Max EPS beat(4)7.4%
EPS beat(8)7
Avg EPS beat(8)2.85%
EPS beat(12)10
Avg EPS beat(12)2.34%
EPS beat(16)13
Avg EPS beat(16)1.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)0.95%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)0.95%
Revenue beat(8)1
Avg Revenue beat(8)-0.98%
Revenue beat(12)1
Avg Revenue beat(12)-1.39%
Revenue beat(16)2
Avg Revenue beat(16)-1.23%
PT rev (1m)3.21%
PT rev (3m)6.01%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)4.18%
EPS NY rev (1m)0.13%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 11.28 | ||
| P/S | 3.1 | ||
| P/FCF | 8.82 | ||
| P/OCF | 8.82 | ||
| P/B | 1.38 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.43
EY7.9%
EPS(NY)4.97
Fwd EY8.87%
FCF(TTM)6.36
FCFY11.34%
OCF(TTM)6.36
OCFY11.34%
SpS18.11
BVpS40.7
TBVpS29.27
PEG (NY)0.83
PEG (5Y)N/A
Graham Number63.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.75% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.16% | ||
| GM | N/A | ||
| FCFM | 35.13% |
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 | 1.23 | ||
| Debt/FCF | 7.88 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 145.37% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC13.25%
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 Y15.19%
EPS Next 2Y11.77%
EPS Next 3Y11.54%
EPS Next 5Y7.43%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y3.62%
Sales Q2Q%6.83%
Revenue Next Year4.05%
Revenue Next 2Y4.29%
Revenue Next 3Y4.4%
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-33.64%
FCF growth 3Y4.53%
FCF growth 5Y18.19%
OCF growth 1Y-33.64%
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 of US BANCORP (USB) stock?
ChartMill assigns a valuation rating of 5 / 10 to US BANCORP (USB). This can be considered as Fairly Valued.
What is the profitability of 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.
Can you provide the dividend sustainability for USB stock?
The dividend rating of US BANCORP (USB) is 6 / 10 and the dividend payout ratio is 51.09%.