US Bancorp (USB) AI Stock Analysis

• Market Cap: $85.48B
• Dividend Yield: 3.77%
• Average Volume (3M): 8.25M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.04
• 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: 8,654,417
• 30 Day Avg. Volume: 8,251,916
• 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: 1.10
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 9.41
• 1Y Price Target: $56.92
• Price Target Upside: 3.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 4.53
• Revenue Forecast (FY): $28.56B

• Rating: 76 Outperform
• Price Target: $58.00 ▲(5.47% Upside)

US Bancorp's strong financial performance and attractive valuation are key strengths, supported by positive earnings call insights and corporate events. However, technical indicators suggest caution due to overbought conditions, and revenue growth concerns remain.

Positive Factors

Earnings Per Share Growth

The significant EPS growth indicates strong profitability and effective cost management, enhancing shareholder value and supporting long-term financial stability.

Fee Revenue Growth

Robust fee revenue growth reflects USB's successful diversification strategy, reducing reliance on interest income and enhancing resilience against interest rate fluctuations.

Impact Finance Growth

Sustained growth in Impact Finance underscores USB's strategic focus on sustainable finance, aligning with industry trends and enhancing long-term revenue streams.

Negative Factors

Declining Revenue Growth

A decline in revenue growth suggests potential challenges in market expansion or product demand, which could impact future profitability and market position.

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially affecting USB's ability to invest in growth opportunities or weather economic downturns.

Commercial Non-Performing Loans Increase

Rising non-performing loans in the commercial segment can lead to higher credit costs and impact profitability, posing a risk to financial stability.

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	42.55B	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	9.98B	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: Positive
• Last Price: 54.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 54.99 is above the 20-day moving average (MA) of 52.67, above the 50-day MA of 49.35, and above the 200-day MA of 45.35, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 78.59 is Negative, neither overbought nor oversold. The STOCH value of 83.02 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
RF	79 Outperform	$24.37B	12.23	11.43%	3.74%	4.00%	28.54%
USB	76 Outperform	$85.48B	12.59	11.69%	3.77%	2.91%	33.77%
MTB	76 Outperform	$31.86B	12.77	9.60%	2.76%	-0.81%	20.34%
FITB	71 Outperform	$32.00B	14.48	11.52%	3.14%	0.15%	11.62%
PNC	71 Outperform	$83.88B	13.80	11.31%	3.11%	1.79%	30.93%
TFC	70 Outperform	$64.74B	13.57	7.98%	4.12%	22.02%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

US Bancorp Corporate Events

U.S. Bancorp Executives to Present at Boston Conference

On November 7, 2025, key executives from U.S. Bancorp, including John Stern, Mark Runkel, and Courtney Kelso, are scheduled to present at the BancAnalysts Association of Boston Conference. The presentation will cover U.S. Bancorp’s strategic priorities and financial performance, highlighting its focus on payments transformation and organic growth. The company aims to deepen relationships and expand its reach, leveraging its strong financial foundation to achieve positive operating leverage and meet its financial targets.

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.