U.S. Bancorp
U.S. Bancorp Fundamental Analysis
U.S. Bancorp (USB-PR) shows moderate financial fundamentals with a PE ratio of 11.99, profit margin of 17.68%, and ROE of 12.12%. The company generates $42.9B in annual revenue with moderate year-over-year growth of 5.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze USB-PR's fundamental strength across five key dimensions:
Efficiency Score
WeakUSB-PR struggles to generate sufficient returns from assets.
Valuation Score
ModerateUSB-PR shows balanced valuation metrics.
Growth Score
ExcellentUSB-PR delivers strong and consistent growth momentum.
Financial Health Score
ModerateUSB-PR shows balanced financial health with some risks.
Profitability Score
ModerateUSB-PR maintains healthy but balanced margins.
Key Financial Metrics
Is USB-PR Expensive or Cheap?
P/E Ratio
USB-PR trades at 11.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, USB-PR's PEG of 2.10 indicates potential overvaluation.
Price to Book
The market values U.S. Bancorp at 1.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.81 times EBITDA. This is generally considered low.
How Well Does USB-PR Make Money?
Net Profit Margin
For every $100 in sales, U.S. Bancorp keeps $17.68 as profit after all expenses.
Operating Margin
Core operations generate 22.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.12 in profit for every $100 of shareholder equity.
ROA
U.S. Bancorp generates $1.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
U.S. Bancorp produces operating cash flow of $5.14B, showing steady but balanced cash generation.
Free Cash Flow
U.S. Bancorp generates strong free cash flow of $5.14B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.30 in free cash annually.
FCF Yield
USB-PR converts 5.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How USB-PR Stacks Against Its Sector Peers
| Metric | USB-PR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.99 | 18.86 | Better (Cheaper) |
| ROE | 12.12% | 847.00% | Weak |
| Net Margin | 17.68% | 4202.00% | Weak |
| Debt/Equity | 1.20 | 0.91 | Weak (High Leverage) |
| Current Ratio | 2.73 | 667.17 | Strong Liquidity |
| ROA | 1.09% | -21543.00% (disorted) | Weak |
USB-PR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews U.S. Bancorp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.42%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-7.67%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
133.68%
Industry Style: Value, Dividend, Cyclical
High Growth