US Bancorp (USB) AI Stock Analysis

• Market Cap: $73.21B
• Dividend Yield: 4.29%
• Average Volume (3M): 8.91M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.16
• Revenue Growth: 2.91%
• EPS Growth: 33.77%
• Country: US
• Employees: 70,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.22
• Shares Outstanding: 1,554,434,100
• 10 Day Avg. Volume: 6,930,390
• 30 Day Avg. Volume: 8,908,436
• 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: 1.28
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 9.49
• 1Y Price Target: $55.97
• Price Target Upside: 18.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $53.00 ▲(12.53% Upside)

US Bancorp's overall stock score is driven by strong financial performance and a positive earnings call, indicating robust profitability and strategic growth initiatives. The valuation is attractive, offering a good entry point for investors. However, technical indicators suggest caution with mixed signals, and challenges in specific segments like corporate payments need monitoring.

Positive Factors

Cash Generation

Strong cash generation indicates efficient operations and provides the company with flexibility to invest in growth opportunities or return capital to shareholders.

Fee Revenue Growth

Sustained fee revenue growth reflects diversified income streams and strengthens the company's financial resilience against interest rate fluctuations.

Impact Finance Growth

The growth in Impact Finance supports long-term revenue diversification and aligns with sustainable investment trends, enhancing the company's market position.

Negative Factors

Rising Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth or weather economic downturns.

Declining Revenue Growth

A decline in revenue growth may indicate challenges in maintaining market share or adapting to changing market conditions, affecting long-term profitability.

Commercial NPL Increase

An increase in non-performing loans can strain financial resources and reflect potential weaknesses in credit risk management, impacting future earnings.

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

US Bancorp generates revenue through multiple key streams, primarily from net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and the interest paid on deposits. The bank offers a variety of loan products, including commercial loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees associated with services such as payment processing, wealth management, investment banking, and card services. Additionally, USB benefits from fees generated through asset management and trust services. Strategic partnerships, particularly in payment processing and technology solutions, enhance its revenue potential. Macroeconomic factors, interest rate fluctuations, and loan demand also significantly influence the bank's earnings.

US Bancorp Financial Statement Overview

Summary

US Bancorp exhibits strong profitability and cash flow generation, with healthy margins and effective equity utilization. However, concerns exist regarding declining revenue growth and relatively high leverage.

Income Statement

US Bancorp's income statement shows a strong gross profit margin of 62.91% and a net profit margin of 17.38% for TTM (Trailing-Twelve-Months), indicating solid profitability. However, the revenue growth rate has declined by 2.31% in the TTM, which is a concern. The EBIT and EBITDA margins are healthy at 21.99% and 23.91%, respectively, reflecting efficient operations.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.23, which is relatively high, indicating significant leverage. However, the return on equity (ROE) is strong at 11.81%, showing effective use of equity. The equity ratio stands at 9.11%, suggesting a moderate level of equity financing.

Cash Flow

Cash flow analysis highlights a robust free cash flow growth rate of 53.74% in the TTM, demonstrating strong cash generation. The operating cash flow to net income ratio is low at 1.38%, but the free cash flow to net income ratio is excellent at 1.0, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.35B	42.71B	40.62B	27.40B	23.71B	25.24B
Gross Profit	26.01B	25.10B	25.74B	22.21B	23.89B	19.42B
EBITDA	9.89B	8.85B	7.88B	7.86B	10.66B	6.58B
Net Income	7.19B	6.30B	5.43B	5.83B	7.96B	4.96B
Balance Sheet
Total Assets	695.36B	678.32B	663.49B	674.80B	573.28B	553.90B
Cash, Cash Equivalents and Short-Term Investments	66.64B	142.87B	130.56B	125.59B	161.31B	199.02B
Total Debt	77.98B	73.52B	66.76B	71.05B	43.92B	53.06B
Total Liabilities	631.56B	619.28B	607.72B	623.57B	517.90B	500.18B
Stockholders Equity	63.34B	58.58B	55.31B	50.77B	54.92B	53.09B
Cash Flow
Free Cash Flow	9.90B	11.27B	8.45B	21.12B	9.87B	3.72B
Operating Cash Flow	9.90B	11.27B	8.45B	21.12B	9.87B	3.72B
Investing Cash Flow	-16.56B	-24.53B	18.93B	7.50B	-57.49B	-15.44B
Financing Cash Flow	-262.00M	8.57B	-19.72B	-3.98B	13.94B	51.90B

US Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 47.1 is below the 20-day moving average (MA) of 47.24, below the 50-day MA of 47.67, and above the 200-day MA of 44.43, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 57.15 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	77 Outperform	$72.15B	11.87	11.31%	3.59%	1.79%	30.93%
RF	76 Outperform	$21.89B	10.98	11.43%	4.07%	4.00%	28.54%
USB	75 Outperform	$73.21B	10.78	11.69%	4.29%	2.91%	33.77%
MTB	74 Outperform	$28.74B	11.52	9.60%	2.97%	-0.81%	20.34%
FITB	72 Outperform	$28.14B	12.73	11.52%	3.55%	4.09%	11.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFC	65 Neutral	$57.39B	12.03	7.98%	4.64%	22.02%	―

US Bancorp Corporate Events

U.S. Bancorp Reports Strong Q3 2025 Earnings

U.S. Bancorp, headquartered in Minneapolis, is a diversified financial services company offering consumer, business, commercial, institutional banking, payments, and wealth management services. The company is recognized for its digital innovation and community partnerships.

U.S. Bancorp’s Earnings Call Highlights Robust Growth

U.S. Bancorp’s recent earnings call painted a picture of robust financial health and strategic success. The company reported significant improvements in revenue and earnings per share (EPS) growth, underpinned by successful strategic initiatives. Despite facing challenges in certain segments such as corporate payments and an uptick in commercial non-performing loans, the overall sentiment was positive, buoyed by strong momentum in fee revenue and deposit growth.

US Bancorp Reports Strong Q3 2025 Financial Results

U.S. Bancorp reported strong financial results for the third quarter of 2025, with record net revenue of $7.3 billion and a 16.7% increase in net income year-over-year. The company achieved a return on tangible common equity of 18.6% and improved its CET1 capital ratio to 10.9%. Additionally, U.S. Bancorp has been selected to provide custody services for Anchorage Digital Bank’s stablecoin reserves, highlighting its growing involvement in digital finance. Moody’s has revised the company’s outlook from negative to stable, reflecting confidence in its financial strategy and performance.

The most recent analyst rating on (USB) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on US Bancorp stock, see the USB Stock Forecast page.

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.

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.