USB Stock Overview
U.S. Bancorp, a financial services holding company, provides various financial services in the United States.
U.S. Bancorp Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$57.50|
|52 Week High||US$63.01|
|52 Week Low||US$42.47|
|1 Month Change||-5.63%|
|3 Month Change||-1.37%|
|1 Year Change||30.06%|
|3 Year Change||5.58%|
|5 Year Change||15.00%|
|Change since IPO||2,252.27%|
Recent News & Updates
U.S. Bancorp: Union Bank Merger Positive, But Be Patient
US Bank has resolved its regulatory issues I described in August 2017; since then, shares are up just 7% compared to S&P +75% and my favorite megabank, JPM +63%. Takeover of Union Bank likely to be a boon to earnings in years ahead if bank can protect revenue while cutting 40% of Union's expenses. However, investors will need patience as banks engaged in M&A struggle to create Alpha; big concern is not expense cuts, but revenue creation/retention. Decent dividend, superior risk-adjusted returns, and attractive Union Bank acquisition deal structure make US Bank a solid hold. I may sell Puts ($50 target) if and when USB and Market hit a strong downdraft over the next six months or so.
U.S. Bancorp: Rising Earnings And South Korea's Interest Rate Hike
South Korea recently became the first nation with a major economy to increase its interest rates since the pandemic began. South Korea raised its base rate to 0.75% from 0.50%. The South Korea rate hike could be bullish for U.S. bank stocks as it improves sentiment and increases expectations of an eventual interest rate hike from the Fed in 2023. U.S. Bancorp’s earnings are improving due to the strengthening U.S. economy. With higher interest rates, the bank’s normalized earnings power could increase further.
|USB||US Banks||US Market|
Return vs Industry: USB underperformed the US Banks industry which returned 42.1% over the past year.
Return vs Market: USB exceeded the US Market which returned 21.3% over the past year.
|USB Average Weekly Movement||3.3%|
|Banks Industry Average Movement||3.7%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
Stable Share Price: USB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: USB's weekly volatility (3%) has been stable over the past year.
About the Company
U.S. Bancorp, a financial services holding company, provides various financial services in the United States. It operates in Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support segments.
U.S. Bancorp Fundamentals Summary
|USB fundamental statistics|
Is USB overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|USB income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 19, 2022
|Earnings per share (EPS)||5.02|
|Net Profit Margin||31.84%|
How did USB perform over the long term?See historical performance and comparison
3.2%Current Dividend Yield
Is U.S. Bancorp undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: USB ($57.5) is trading below our estimate of fair value ($95.83)
Significantly Below Fair Value: USB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: USB is poor value based on its PE Ratio (11.4x) compared to the US Banks industry average (10.7x).
PE vs Market: USB is good value based on its PE Ratio (11.4x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: USB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: USB is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.1x).
How is U.S. Bancorp forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: USB's earnings are forecast to decline over the next 3 years (-1.7% per year).
Earnings vs Market: USB's earnings are forecast to decline over the next 3 years (-1.7% per year).
High Growth Earnings: USB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: USB's revenue (8.1% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: USB's revenue (8.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: USB's Return on Equity is forecast to be low in 3 years time (14.2%).
How has U.S. Bancorp performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: USB has high quality earnings.
Growing Profit Margin: USB's current net profit margins (31.8%) are higher than last year (24%).
Past Earnings Growth Analysis
Earnings Trend: USB's earnings have grown by 1.2% per year over the past 5 years.
Accelerating Growth: USB's earnings growth over the past year (61.8%) exceeds its 5-year average (1.2% per year).
Earnings vs Industry: USB earnings growth over the past year (61.8%) exceeded the Banks industry 43%.
Return on Equity
High ROE: USB's Return on Equity (14.4%) is considered low.
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
Financial Institutions Analysis
Asset Level: USB's Assets to Equity ratio (10.4x) is moderate.
Allowance for Bad Loans: USB has a sufficient allowance for bad loans (639%).
Low Risk Liabilities: 86% of USB's liabilities are made up of primarily low risk sources of funding.
Loan Level: USB has an appropriate level of Loans to Assets ratio (51%).
Low Risk Deposits: USB's Loans to Deposits ratio (66%) is appropriate.
Level of Bad Loans: USB has an appropriate level of bad loans (0.3%).
What is U.S. Bancorp current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: USB's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: USB's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (3.58%).
Stability and Growth of Payments
Stable Dividend: USB's dividends per share have been stable in the past 10 years.
Growing Dividend: USB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.5%), USB's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: USB's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andy Cecere (60 yo)
Mr. Andrew J. 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...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD16.75M) is above average for companies of similar size in the US market ($USD11.11M).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Experienced Management: USB's management team is considered experienced (4.6 years average tenure).
Experienced Board: USB's board of directors are considered experienced (4.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
U.S. Bancorp's employee growth, exchange listings and data sources
- Name: U.S. Bancorp
- Ticker: USB
- Exchange: NYSE
- Founded: 1863
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: US$85.261b
- Shares outstanding: 1.48b
- Website: https://www.usbank.com
Number of Employees
- U.S. Bancorp
- 800 Nicollet Mall
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/27 23:28|
|End of Day Share Price||2021/11/26 00:00|
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.