US Bancorp (USB) AI Stock Analysis

• Market Cap: $75.10B
• Dividend Yield: 4.23%
• Average Volume (3M): 10.27M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.26
• Revenue Growth: 2.95%
• EPS Growth: 33.77%
• Country: US
• Employees: 70,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.22
• Shares Outstanding: 1,556,189,500
• 10 Day Avg. Volume: 11,498,503
• 30 Day Avg. Volume: 10,266,558
• 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: 1.25
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 9.85
• 1Y Price Target: $55.97
• Price Target Upside: 17.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 73 Outperform
• Price Target: $53.00 ▲(10.88% Upside)

US Bancorp's strong earnings call performance and attractive valuation are the most significant factors contributing to the score. While financial performance shows solid profitability, recent declines in revenue and cash flow are concerns. Technical analysis indicates mixed signals, with potential for a rebound. Overall, the stock presents a balanced risk-reward profile.

Positive Factors

Earnings Growth

The significant year-over-year EPS growth indicates strong operational performance and effective cost management, enhancing shareholder value.

Fee Revenue Growth

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

Strategic Leadership

The appointment of a seasoned leader in wealth management is likely to enhance strategic direction and growth in affluent client segments.

Negative Factors

Revenue Decline

Declining revenue and cash flow can hinder the company's ability to invest in growth opportunities and maintain competitive positioning.

Commercial Loan Quality

Rising non-performing loans in the commercial sector may indicate underlying credit quality issues, potentially impacting future profitability.

Cash Flow Generation

Limited cash flow generation relative to net income suggests potential liquidity constraints, affecting the company's financial flexibility.

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 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 demonstrates solid financial health with strong profitability margins and effective equity utilization. However, recent revenue and cash flow declines pose challenges. The company maintains a balanced leverage position, but needs to address growth and cash flow generation to sustain long-term stability.

Income Statement

US Bancorp's income statement shows a strong gross profit margin of 60.39% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 16.30% from previous periods, reflecting pressure on profitability. Revenue growth has been negative in the TTM, which is a concern, but historical growth rates have been positive, suggesting potential for recovery. EBIT and EBITDA margins remain healthy, supporting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.29, indicating a balanced approach to leveraging. Return on equity is strong at 11.55% for TTM, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, which limits a full assessment of asset financing stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 10.12% in the TTM, which could impact future investments. The operating cash flow to net income ratio is low at 0.014, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio remains stable at 1.0, indicating consistent cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.33B	42.71B	40.62B	27.40B	23.71B	25.24B
Gross Profit	25.56B	25.10B	25.74B	22.21B	23.89B	19.42B
EBITDA	9.53B	8.85B	7.88B	7.86B	10.66B	6.58B
Net Income	6.90B	6.30B	5.43B	5.83B	7.96B	4.96B
Balance Sheet
Total Assets	686.37B	678.32B	663.49B	674.80B	573.28B	553.90B
Cash, Cash Equivalents and Short-Term Investments	148.38B	142.87B	130.56B	125.59B	161.31B	199.02B
Total Debt	79.05B	73.52B	66.76B	71.05B	43.92B	53.06B
Total Liabilities	624.47B	619.28B	607.72B	623.57B	517.90B	500.18B
Stockholders Equity	61.44B	58.58B	55.31B	50.77B	54.92B	53.09B
Cash Flow
Free Cash Flow	7.48B	11.27B	8.45B	21.12B	9.87B	3.72B
Operating Cash Flow	7.48B	11.27B	8.45B	21.12B	9.87B	3.72B
Investing Cash Flow	-15.17B	-24.53B	18.93B	7.50B	-57.49B	-15.44B
Financing Cash Flow	-338.00M	8.57B	-19.72B	-3.98B	13.94B	51.90B

US Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.80
• 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 47.8 is above the 20-day moving average (MA) of 47.19, above the 50-day MA of 47.77, and above the 200-day MA of 44.42, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 87.34 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	―	$73.42B	12.03	11.31%	3.57%	1.94%	30.93%
USB	―	$75.10B	11.05	11.71%	4.23%	2.95%	33.77%
FITB	―	$28.22B	12.75	11.52%	3.54%	-1.74%	11.62%
RF	―	$21.92B	10.83	11.43%	4.19%	4.28%	28.54%
TFC	―	$56.98B	11.85	7.98%	4.66%	21.90%	―
MTB	―	$28.95B	11.41	9.61%	3.03%	-0.66%	20.36%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.