NYSE:USB.PRP

Stock Analysis Report

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Executive Summary

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

Rewards

PE ratio (11.7x) is below the US market (19.1x)

Earnings are forecast to grow 15.86% per year

Pays a high and reliable dividend of 4.5%

Risk Analysis

No risks detected for USB.PRP from our risk checks.


Snowflake Analysis

Flawless balance sheet 6 star 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: USB.PRP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

USB.PRP

1.3%

US Banks

0.5%

US Market


1 Year Return

1.2%

USB.PRP

-16.6%

US Banks

18.0%

US Market

Return vs Industry: USB.PRP exceeded the US Banks industry which returned -15.2% over the past year.

Return vs Market: USB.PRP underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

USB.PRPIndustryMarket
7 Day1.0%1.3%0.5%
30 Day1.9%3.9%4.5%
90 Day4.3%20.1%19.7%
1 Year6.6%1.2%-13.7%-16.6%20.5%18.0%
3 Yearn/a-7.2%-14.7%46.3%36.8%
5 Yearn/a23.2%8.0%87.2%66.8%

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?

11.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: USB.PRP ($27.54) is trading above our estimate of fair value ($26.85)

Significantly Below Fair Value: USB.PRP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: USB.PRP is poor value based on its PE Ratio (11.7x) compared to the US Banks industry average (10x).

PE vs Market: USB.PRP is good value based on its PE Ratio (11.7x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: USB.PRP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: USB.PRP is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is U.S. Bancorp forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: USB.PRP's forecast earnings growth (15.9% per year) is above the savings rate (2.2%).

Earnings vs Market: USB.PRP's earnings (15.9% per year) are forecast to grow slower than the US market (24.1% per year).

High Growth Earnings: USB.PRP's earnings are forecast to grow, but not significantly.

Revenue vs Market: USB.PRP's revenue (0.8% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: USB.PRP's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: USB.PRP's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

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

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USB.PRP has high quality earnings.

Growing Profit Margin: USB.PRP's current net profit margins (25.4%) are lower than last year (32.5%).


Past Earnings Growth Analysis

Earnings Trend: USB.PRP's earnings have grown by 3.3% per year over the past 5 years.

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

Earnings vs Industry: USB.PRP had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: USB.PRP's Return on Equity (10.1%) 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


Financial Institutions Analysis

Asset Level: USB.PRP's Assets to Equity ratio (10.4x) is moderate.

Allowance for Bad Loans: USB.PRP has a sufficient allowance for bad loans (689%).

Low Risk Liabilities: 84% of USB.PRP's liabilities are made up of primarily low risk sources of funding.

Loan Level: USB.PRP has an appropriate level of Loans to Assets ratio (55%).

Low Risk Deposits: USB.PRP's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: USB.PRP has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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

4.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: USB.PRP's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: USB.PRP's dividend (4.5%) is in the top 25% of dividend payers in the US market (4.31%)


Stability and Growth of Payments

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

Growing Dividend: USB.PRP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.4%), USB.PRP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: USB.PRP's dividends in 3 years are forecast to be well covered by earnings (49.8% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Andy Cecere (59 yo)

3.33yrs

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 ($USD18.79M) is above average for companies of similar size in the US market ($USD11.30M).

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
Chairman3.33yrsUS$18.79m0.051%
$ 29.1m
Terrance Dolan
Vice Chairman & CFO4yrsUS$6.51m0.0086%
$ 4.9m
Jeffry von Gillern
Vice Chairman of Technology & Operations Servicesno dataUS$4.36m0.0076%
$ 4.3m
Shailesh Kotwal
Vice Chairman of Payment Services5.42yrsUS$3.63m0.0041%
$ 2.3m
Gunjan Kedia
Vice Chairman of Wealth Management & Investment Services2.58yrsUS$3.57m0.0018%
$ 1.0m
Timothy Welsh
Vice Chairman of Consumer & Business Banking3.08yrsUS$3.57m0.0011%
$ 614.6k
Eric Freedman
Chief Investment Officer3.83yrsno datano data
Katherine Quinn
Vice Chairman & Chief Administrative Officer3.33yrsno data0.0057%
$ 3.3m
Jennifer Thompson
Executive Vice President of Investor Relationsno datano datano data
James Chosy
Senior Executive VP & General Counsel7.42yrsno data0.0064%
$ 3.6m
Dana Ripley
Chief Communications Officer - Public Affairs & Communicationsno datano datano data
Lawrence Otto
Market President5.08yrsno datano data

3.8yrs

Average Tenure

55yo

Average Age

Experienced Management: USB.PRP's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Cecere
Chairman3.33yrsUS$18.79m0.051%
$ 29.1m
Jeffrey Jones
Member of the Advisory Board & President of Corporate Payment Systems for U.S. Bankno datano datano data
Warner Baxter
Independent Director4.67yrsUS$305.98kno data
Olivia Kirtley
Independent Lead Director0.33yrUS$285.48k0.00071%
$ 404.1k
Marc Casper
Independent Director4.42yrsUS$264.48kno data
Roland Hernandez
Independent Director8.58yrsUS$304.48kno data
Richard McKenney
Independent Director2.83yrsUS$315.48kno data
Karen Lynch
Independent Director4.67yrsUS$282.48kno data
Kimberly Harris
Independent Director5.83yrsUS$286.48kno data
Elizabeth Buse
Independent Director2.17yrsUS$287.98kno data
Yusuf Mehdi
Independent Director2.17yrsUS$283.98kno data
Scott Wine
Independent Director6.08yrsUS$304.48k0.000030%
$ 17.1k

4.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: USB.PRP's board of directors are considered experienced (4.4 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.


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: USB.PRP
  • Exchange: NYSE
  • Founded: 1863
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$56.910b
  • Shares outstanding: 1.51b
  • 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 USD0.01ARARSDec 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 06:30
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
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.