US Bancorp (USB) AI Stock Analysis

• Market Cap: $75.58B
• Dividend Yield: 4.1%
• Average Volume (3M): 9.79M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.26
• Revenue Growth: 1.10%
• EPS Growth: 32.55%
• Country: US
• Employees: 70,000
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 1.11
• Shares Outstanding: 1,556,189,500
• 10 Day Avg. Volume: 7,883,887
• 30 Day Avg. Volume: 9,785,001
• 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: 1.31
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: 10.64
• 1Y Price Target: $53.79
• Price Target Upside: 10.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• Price Target: $52.00 ▲(6.64% Upside)

US Bancorp's overall stock score is driven by strong financial performance and attractive valuation, supported by positive technical indicators. The company's robust earnings call and strategic corporate events further enhance its investment appeal. However, stagnant revenue growth and potential overbought technical conditions slightly temper the score.

Positive Factors

Earnings Growth

Forecast for double digits EPS growth from FY25-27, combined with improving ROA, creates a set-up for stock outperformance.

Leadership Strategy

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.

Negative Factors

Capital Markets Size

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 remains undersized vs. larger peers.

Loan and NII Growth

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

Net Interest Income

The NII miss today further hurt management credibility based on investor conversations.

US Bancorp Business Overview & Revenue Model

Company Description

US Bancorp (USB) is the parent company of U.S. Bank, one of the largest financial institutions in the United States. Operating primarily in the banking sector, USB offers a wide range of financial services including consumer and commercial banking, investment services, mortgage banking, and payment processing. The company serves millions of customers through its extensive network of branches and ATMs, as well as through digital banking channels. US Bancorp is committed to providing innovative financial solutions and enhancing customer experiences across its diverse product offerings.

How the Company Makes Money

US Bancorp generates revenue primarily through interest income and non-interest income. Interest income is derived from loans made to consumers and businesses, including mortgages, credit cards, and commercial loans, where the bank earns interest on the outstanding balances. Non-interest income comes from various fees associated with banking services, such as account maintenance fees, transaction fees, and investment management fees. Additionally, USB benefits from its payment processing services, earning revenue from merchant services and card processing transactions. The bank also engages in wealth management and trust services, contributing to its overall revenue. Key partnerships with fintech companies and other financial institutions enhance its service offerings and provide avenues for growth, while economic factors such as interest rates and consumer demand for credit significantly influence its earnings.

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: Positive
• Last Price: 48.76
• 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 48.76 is above the 20-day moving average (MA) of 45.98, above the 50-day MA of 45.85, and above the 200-day MA of 44.98, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 69.09 is Neutral, neither overbought nor oversold. The STOCH value of 94.60 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	79 Outperform	$80.12B	13.71	11.19%	3.15%	3.60%	22.68%
FITB	78 Outperform	$29.78B	14.00	11.58%	3.25%	1.90%	2.87%
RF	77 Outperform	$24.16B	12.42	11.59%	3.65%	2.94%	20.85%
USB	76 Outperform	$75.58B	11.53	11.64%	4.10%	1.10%	32.55%
MTB	75 Outperform	$31.28B	12.82	9.47%	2.67%	0.69%	14.79%
TFC	69 Neutral	$59.78B	12.43	8.13%	4.45%	18.31%	―
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%

US Bancorp Corporate Events

US Bancorp Updates CEO Travel Agreement Policies

On August 13, 2025, U.S. Bank National Association, a subsidiary of U.S. Bancorp, entered into agreements with its CEO, Gunjan Kedia, regarding the use of the company’s corporate aircraft and reimbursement for charter flight travel. This move may extend to other executives, potentially impacting the company’s operational logistics and executive travel policies.

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.

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.