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USB

U.S. BancorpNYSE:USB Stock Report

Market Cap

US$85.3b

7D

-0.2%

1Y

30.1%

Updated

27 Nov, 2021

Data

Company Financials +
USB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

USB Stock Overview

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

U.S. Bancorp Competitors

Bank of America

NYSE:BAC

US$374.5b

Wells Fargo

NYSE:WFC

US$193.1b

Citigroup

NYSE:C

US$130.0b

Apple

NasdaqGS:AAPL

US$2.6t

Price History & Performance

Summary of all time highs, changes and price drops for U.S. Bancorp
Historical stock prices
Current Share PriceUS$57.50
52 Week HighUS$63.01
52 Week LowUS$42.47
Beta1.1
1 Month Change-5.63%
3 Month Change-1.37%
1 Year Change30.06%
3 Year Change5.58%
5 Year Change15.00%
Change since IPO2,252.27%

Recent News & Updates

Sep 22

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.

Sep 04

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.

Shareholder Returns

USBUS BanksUS Market
7D-0.2%-0.8%-2.7%
1Y30.1%42.1%21.3%

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.

Price Volatility

Is USB's price volatile compared to industry and market?
USB volatility
USB Average Weekly Movement3.3%
Banks Industry Average Movement3.7%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

FoundedEmployeesCEOWebsite
186368,108Andy Cecerehttps://www.usbank.com

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

How do U.S. Bancorp's earnings and revenue compare to its market cap?
USB fundamental statistics
Market CapUS$85.26b
Earnings (TTM)US$7.45b
Revenue (TTM)US$23.39b

11.4x

P/E Ratio

1.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
USB income statement (TTM)
RevenueUS$23.39b
Cost of RevenueUS$0
Gross ProfitUS$23.39b
ExpensesUS$15.94b
EarningsUS$7.45b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 19, 2022

Earnings per share (EPS)5.02
Gross Margin100.00%
Net Profit Margin31.84%
Debt/Equity Ratio97.5%

How did USB perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

40.0%

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).


Future Growth

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

-1.7%

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%).


Past Performance

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

1.2%

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.


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'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%).


Dividend

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

3.20%

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).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Andy Cecere (60 yo)

4.58yrs

Tenure

US$16,752,753

Compensation

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.


Leadership Team

Experienced Management: USB's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: USB's board of directors are considered experienced (4.1 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 employee growth, exchange listings and data sources


Key Information

  • 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


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 23:28
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.