US Bancorp (USB) AI Stock Analysis

• Market Cap: $69.42B
• Dividend Yield: 4.49%
• Average Volume (3M): 11.70M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.26
• Revenue Growth: 0.84%
• EPS Growth: 32.55%
• Country: US
• Employees: 70,000
• Sector: Financial
• Sector Strength: 67
• Industry: Banks - Regional
• EPS (TTM): 1.11
• Shares Outstanding: 1,558,000,000
• 10 Day Avg. Volume: 9,136,073
• 30 Day Avg. Volume: 11,704,081
• PEG Ratio: 0.74
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 6.62
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: 10.64
• 1Y Price Target: $53.79
• Price Target Upside: 20.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 69 Neutral
• Price Target: $48.00 ▲(7.72% Upside)

US Bancorp's overall stock score reflects strong financial performance and attractive valuation, tempered by technical indicators suggesting short-term caution. Earnings call insights and recent corporate events highlight strategic growth and robust capital management, supporting a positive long-term outlook.

Positive Factors

Leadership Impact

New CEO is putting her stamp on the balance sheet by pivoting to multi-service clients who bring in 3x the revenue of single-service.

Operational Efficiency

Operating leverage outpaced guidance, indicating strong operational efficiency.

Risk/Reward Profile

The stock is seen as having an interesting risk/reward profile, especially if the net interest margin tracks towards the 3% level.

Negative Factors

Investor Skepticism

Stock valuation reflects investor skepticism.

Loan Growth Concern

The lack of loan/NII growth is a concern about earnings sustainability.

NIM Target Shortfall

NIM is expected to fall short of USB's 3% medium-term target due to an unfavorable shift in deposit mix over the past decade.

US Bancorp Business Overview & Revenue Model

Company Description

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities and other financial institutions 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. 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. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity 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 investment management, ATM processing, mortgage banking, insurance, and brokerage and leasing services. As of December 31, 2021, the company provided its products and services through a network of 2,230 banking offices principally operating in the Midwest and West regions of the United States, as well as through on-line services, over mobile devices, and other distribution channels; and operated a network of 4,059 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.

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's financial performance is solid, characterized by strong profitability and cash flow metrics. The net profit margin is robust at 15.7%, and the company demonstrates efficient operations with healthy EBIT and EBITDA margins. However, revenue growth is slightly negative, and a higher equity buffer could enhance resilience.

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: Negative
• Last Price: 44.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USB, the sentiment is Negative. The current price of 44.56 is below the 20-day moving average (MA) of 45.89, below the 50-day MA of 44.90, and below the 200-day MA of 45.03, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 26.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USB.

US Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	80 Outperform	$74.43B	12.91	11.19%	3.50%	3.60%	22.68%
FITB	78 Outperform	$27.59B	12.87	11.58%	3.62%	2.08%	2.87%
RF	77 Outperform	$22.64B	11.74	11.59%	3.97%	2.83%	20.85%
MTB	77 Outperform	$29.39B	12.18	9.47%	2.92%	0.62%	14.75%
USB	69 Neutral	$69.42B	10.66	11.66%	4.49%	0.84%	32.55%
TFC	69 Neutral	$55.99B	11.80	8.13%	4.79%	18.31%	―
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.63%	2.01%

US Bancorp Corporate Events

US Bancorp Reports Strong Q2 2025 Financial Results

US Bancorp reported strong financial results for the second quarter of 2025, with a net income of $1,815 million, marking a 13.2% increase year-over-year. The company achieved a return on tangible common equity of 18% and a return on average assets of 1.08%. The results were driven by growth in fee revenue, particularly in payment services, trust and investment management, and treasury management fees. Elavon, a subsidiary of US Bancorp, improved its ranking in the 2025 Nilson Report, becoming the fifth-largest U.S. merchant acquirer. Additionally, US Bancorp completed its first fully digital trade finance transaction, highlighting its commitment to modernizing trade and working capital for clients.

The most recent analyst rating on (USB) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on US Bancorp stock, see the USB Stock Forecast page.

U.S. Bancorp Announces New Stress Capital Buffer Requirement

On July 1, 2025, U.S. Bancorp announced that the Federal Reserve has set its preliminary Stress Capital Buffer (SCB) requirement at 2.6% following the Dodd-Frank Act Stress Test. This SCB, combined with the Basel III CET1 capital ratio minimum, requires the company to maintain a CET1 ratio of at least 7.1% from October 1, 2025, to September 30, 2026. U.S. Bancorp’s regulatory ratios reflect strong capital levels, with a CET1 ratio of 10.8% as of March 31, 2025. The company also plans to increase its quarterly common stock dividend by 4% to $0.52 per share, pending board approval, and continue its $5 billion share repurchase program. These actions underscore U.S. Bancorp’s robust capital position and readiness to manage potential industry stress.

The most recent analyst rating on (USB) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on US Bancorp stock, see the USB Stock Forecast page.