LSE:0LHY

Stock Analysis Report

Executive Summary

U.S. Bancorp, a financial services holding company, provides various financial services in the United States.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has U.S. Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0LHY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

0LHY

-1.4%

GB Banks

6.2%

GB Market


1 Year Return

-30.1%

0LHY

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: 0LHY exceeded the UK Banks industry which returned -33.5% over the past year.

Return vs Market: 0LHY underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

0LHYIndustryMarket
7 Day0%-1.4%6.2%
30 Day-33.2%-22.0%-17.8%
90 Day-43.1%-34.6%-27.7%
1 Year-28.5%-30.1%-28.8%-33.5%-18.6%-22.7%
3 Yearn/a-32.0%-41.3%-13.4%-24.6%
5 Yearn/a-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

How volatile is U.S. Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is U.S. Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0LHY ($33.88) is trading below our estimate of fair value ($73.45)

Significantly Below Fair Value: 0LHY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0LHY is poor value based on its PE Ratio (8.6x) compared to the Banks industry average (4.6x).

PE vs Market: 0LHY is good value based on its PE Ratio (8.6x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0LHY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0LHY is overvalued based on its PB Ratio (1.2x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is U.S. Bancorp forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0LHY's earnings are forecast to decline over the next 3 years (-3% per year).

Earnings vs Market: 0LHY's earnings are forecast to decline over the next 3 years (-3% per year).

High Growth Earnings: 0LHY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0LHY's revenue (4.8% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0LHY's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0LHY's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has U.S. Bancorp performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0LHY has high quality earnings.

Growing Profit Margin: 0LHY's current net profit margins (31.1%) are lower than last year (32.6%).


Past Earnings Growth Analysis

Earnings Trend: 0LHY's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: 0LHY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0LHY had negative earnings growth (-3%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: 0LHY's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is U.S. Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0LHY has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0LHY's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: 0LHY's level of assets compared to its equity is low.

Allowance for Bad Loans: 0LHY has a sufficient allowance for bad loans.

Low Risk Liabilities: 0LHY's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0LHY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0LHY's loans are broadly funded by customer deposits.

Level of Bad Loans: 0LHY has an appropriate level of bad loans (0.23%)


Next Steps

Dividend

What is U.S. Bancorp's current dividend yield, its reliability and sustainability?

4.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0LHY's dividend (4.7%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0LHY's dividend (4.7%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: 0LHY's dividends per share have been stable in the past 10 years.

Growing Dividend: 0LHY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.9%), 0LHY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0LHY's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Andy Cecere (58yo)

2.92s

Tenure

US$18,785,026

Compensation

Mr. Andrew Cecere, also known as Andy, has been the Chief Executive Officer and President of U.S. Bancorp and U.S. Bank National Association since April 18, 2017 and January 19, 2016. Mr. Cecere served as  ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD18.79M) is above average for companies of similar size in the UK market ($USD5.57M).

Compensation vs Earnings: Andy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Cecere
Chairman2.92yrsUS$18.79m0.051% $27.6m
Terrance Dolan
Vice Chairman & CFO3.58yrsUS$6.51m0.0085% $4.6m
Jeffry von Gillern
Vice Chairman of Technology & Operations Servicesno dataUS$4.36m0.0076% $4.1m
Shailesh Kotwal
Vice Chairman of Payment Services5yrsUS$3.63m0.0040% $2.2m
Gunjan Kedia
Vice Chairman of Wealth Management & Investment Services2.17yrsUS$3.57m0.0018% $974.0k
Timothy Welsh
Vice Chairman of Consumer & Business Banking2.67yrsUS$3.57m0.0011% $582.2k
Eric Freedman
Chief Investment Officer3.42yrsno datano data
Katherine Quinn
Vice Chairman & Chief Administrative Officer2.92yrsno data0.0057% $3.1m
Jennifer Thompson
Executive Vice President of Investor Relationsno datano datano data
James Chosy
Senior Executive VP & General Counsel7yrsno data0.0063% $3.4m

3.2yrs

Average Tenure

54yo

Average Age

Experienced Management: 0LHY's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Cecere
Chairman2.92yrsUS$18.79m0.051% $27.6m
Jeffrey Jones
Member of the Advisory Board & President of Corporate Payment Systems for U.S. Bankno datano datano data
Arthur Collins
Independent Director24.17yrsUS$294.48kno data
Olivia Kirtley
Independent Lead Director13.42yrsUS$285.48k0.00070% $380.9k
David O'Maley
Lead Director3.17yrsUS$319.48k0.012% $6.6m
O'dell Owens
Independent Director29.17yrsUS$268.98kno data
Roland Hernandez
Independent Director8.17yrsUS$304.48kno data
Craig Schnuck
Independent Director18.17yrsUS$279.48kno data
Richard McKenney
Independent Director2.42yrsUS$315.48kno data
Scott Wine
Independent Director5.67yrsUS$304.48k0.000030% $16.3k

8.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 0LHY's board of directors are considered experienced (8.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

U.S. Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: U.S. Bancorp
  • Ticker: 0LHY
  • Exchange: LSE
  • Founded: 1863
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$54.416b
  • Shares outstanding: 1.52b
  • Website: https://www.usbank.com

Number of Employees


Location

  • U.S. Bancorp
  • 800 Nicollet Mall
  • Minneapolis
  • Minnesota
  • 55402
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
USB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1980
UB5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
UB5XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1980
USBSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1980
0LHYLSE (London Stock Exchange)YesCommon StockGBUSDJan 1980
UB5ETLX (Eurotlx)YesCommon StockITEURJan 1980
USBCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1980
USB.PRHNYSE (New York Stock Exchange)PFD B 1/1000DPUSUSDMar 2006
USBBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1 COM(USD)ARARSDec 2007
USB.PRMNYSE (New York Stock Exchange)DEP SHS PFD FUSUSDJan 2012
USB.PRONYSE (New York Stock Exchange)PFD 1/1000 PRP HUSUSDMay 2013
USBC34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM USD0.01BRBRLDec 2014
USB.PRPNYSE (New York Stock Exchange)DEP PERP PFD KUSUSDAug 2018

Biography

U.S. Bancorp, a financial services holding company, provides various financial services in the United States. It operates in five segments: Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; lending services, such as traditional credit products; and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products, as well as home equity, auto, boat, RV, personal loans, and personal line of credit. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. In addition, the company offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds. Further, it provides corporate and purchasing card, and corporate trust services; and merchant processing services, as well as cash and investment management, ATM processing, mortgage banking, and brokerage and leasing services. The company offers its products and services through operating a network of 2,795 banking offices principally operating in the Midwest and West regions of the United States, as well as through online services and over mobile devices. It also operates a network of 4,459 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:28
End of Day Share Price2020/03/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.