US Bancorp (USB) AI Stock Analysis

• Market Cap: $69.83B
• Dividend Yield: 4.46%
• Average Volume (3M): 8.42M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.26
• Revenue Growth: 2.19%
• EPS Growth: 34.00%
• Country: US
• Employees: 70,000
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 1.03
• Shares Outstanding: 1,558,027,600
• 10 Day Avg. Volume: 12,150,325
• 30 Day Avg. Volume: 8,416,315
• PEG Ratio: -0.40
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.07
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 4.27
• 1Y Price Target: $51.06
• Price Target Upside: 11.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 73 Outperform
• Price Target: $49.00 ▲(7.41%Upside)

US Bancorp's overall stock score reflects its strong financial performance, attractive valuation, and positively reviewed earnings call. The main strengths are its profitability metrics, reasonable valuation, and a solid dividend yield. Technical indicators and revenue growth challenges slightly moderate the score.

Positive Factors

Earnings

USB shares outperformed expectations with stronger fee income and lower credit costs, leading to revised earnings estimates and a higher price objective.

Operational Efficiency

Operating leverage outpaced guidance, indicating strong operational efficiency.

Negative Factors

Investor Sentiment

Stock valuation reflects investor skepticism, indicating concerns about the company's future performance.

Market Competition

USB has a tough task to grow more fees with wholesale clients when every other large bank looks to do the same and its capital markets remain undersized compared to larger peers.

US Bancorp Business Overview & Revenue Model

Company Description

U.S. Bancorp (USB) is a diversified financial services holding company headquartered in Minneapolis, Minnesota. It operates through its principal subsidiary, U.S. Bank National Association, and offers a wide range of financial products and services in the sectors of consumer and business banking, corporate and commercial banking, wealth management, and payment services. The company serves individuals, businesses, nonprofit organizations, government entities, and financial institutions primarily in the United States.

How the Company Makes Money

U.S. Bancorp generates revenue through several key streams, including interest income from loans and leases, fees from payment services, and wealth management and investment services. Interest income is primarily derived from consumer, commercial, and real estate loans, as well as credit card operations. The bank also earns significant revenue from non-interest income sources such as transaction fees from merchant processing, card issuing, and ATM services. Wealth management fees, including those from investment advisory and asset management services, contribute to its earnings. Moreover, U.S. Bancorp benefits from strategic partnerships and a diversified customer base, enhancing its profitability and financial stability.

US Bancorp Financial Statement Overview

Summary

US Bancorp overall demonstrates solid financial health with strong profitability and cash flow metrics, balanced by moderate leverage. While the revenue growth has been stagnant, the company maintains efficient operations and effective equity utilization. Strengthening revenue growth and increasing equity could further enhance its financial stability.

Income Statement

US Bancorp's income statement demonstrates stable performance with a gross profit margin of 59.5% for TTM (Trailing-Twelve-Months). The net profit margin improved to 15.7% TTM, indicating robust profitability. However, the revenue growth rate was slightly negative at -0.3% compared to the previous year, suggesting a need for growth initiatives. EBIT and EBITDA margins were healthy at 19.7% and 21.9% respectively, showcasing solid operational efficiency.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.28, which is typical for the banking sector. The equity ratio stood at 8.9%, indicating a stable capital position. Return on equity for TTM was strong at 11.1%, highlighting effective use of equity. Nonetheless, a higher equity buffer could enhance financial resilience.

Cash Flow

US Bancorp's cash flow statement shows a strong operating cash flow to net income ratio of 1.25 TTM, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio was also healthy at 1.25. Although free cash flow decreased compared to the previous year, it remains positive, supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.60B	42.71B	40.62B	27.40B	23.71B	25.24B
Gross Profit	25.36B	25.10B	25.74B	22.21B	23.89B	19.42B
EBITDA	9.31B	8.85B	7.88B	7.86B	10.66B	6.58B
Net Income	6.69B	6.30B	5.43B	5.83B	7.96B	4.96B
Balance Sheet
Total Assets	676.49B	678.32B	663.49B	674.80B	573.28B	553.90B
Cash, Cash Equivalents and Short-Term Investments	136.36B	142.87B	130.56B	125.59B	161.31B	199.02B
Total Debt	77.02B	73.52B	66.76B	71.05B	43.92B	53.06B
Total Liabilities	615.93B	619.28B	607.72B	623.57B	517.90B	500.18B
Stockholders Equity	60.10B	58.58B	55.31B	50.77B	54.92B	53.09B
Cash Flow
Free Cash Flow	8.33B	11.27B	8.45B	21.12B	9.87B	3.72B
Operating Cash Flow	8.33B	11.27B	8.45B	21.12B	9.87B	3.72B
Investing Cash Flow	-22.13B	-24.53B	18.93B	7.50B	-57.49B	-15.44B
Financing Cash Flow	-13.17B	8.57B	-19.72B	-3.98B	13.94B	51.90B

US Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USB, the sentiment is Positive. The current price of 45.62 is above the 20-day moving average (MA) of 44.03, above the 50-day MA of 42.59, and above the 200-day MA of 45.16, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 64.28 is Neutral, neither overbought nor oversold. The STOCH value of 90.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USB.

US Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	81 Outperform	$72.19B	12.89	11.15%	3.51%	3.07%	19.01%
FITB	80 Outperform	$27.15B	12.92	11.71%	3.64%	5.75%	0.68%
MTB	77 Outperform	$30.70B	12.74	9.39%	2.82%	1.20%	1.12%
RF	75 Outperform	$20.58B	11.04	11.33%	4.37%	1.05%	12.14%
USB	73 Outperform	$69.83B	11.03	11.50%	4.46%	2.19%	34.00%
Sector *	67 Neutral	$16.51B	11.23	9.71%	3.96%	11.61%	-10.70%
TFC	63 Neutral	$54.21B	12.20	0.10%	5.02%	-27.31%	―

US Bancorp Corporate Events

U.S. Bancorp Appoints Gunjan Kedia as New CEO

U.S. Bancorp announced significant leadership changes effective April 15, 2025, with Gunjan Kedia appointed as the new President and CEO. Her compensation package includes an increased base salary and a substantial long-term incentive award, reflecting her transition to the CEO role and market pay levels. Andrew Cecere, the former CEO, will continue as Executive Chairman with a defined compensation package and an amendment to his retirement plan, which freezes his supplemental benefits as of April 15, 2025.

U.S. Bancorp Reports Strong Q1 2025 Financial Results

U.S. Bancorp reported strong financial results for the first quarter of 2025, with a net income of $1,709 million and diluted earnings per share of $1.03. The company achieved a return on tangible common equity of 17.5% and a net revenue increase of 3.6% year-over-year. The bank’s capital levels and asset quality remain robust, with a CET1 capital ratio of 10.8%. Additionally, U.S. Bancorp has expanded its collaboration with State Farm, allowing State Farm customers to apply for personal loans through U.S. Bank, and introduced a new Spend Management platform for business owners to manage card-based spending.