U.S. Bancorp (USB)
Financials · $94.9B market cap · SEC CIK 0000036104
ahead of 49% of the S&P 500 · #45 of 76 in Financials
Next reports on Jan 19, 2027, after the close, with analysts expecting $1.42 in earnings per share.
52-week range $45.02 to $66.08. 8% below its 52-week high and 35% above its low.
The case for USB
- Cheap for its growth: 11.3× earnings, where 6% a year of growth plus a 5.2% dividend would justify about 25×.
- 20% of revenue drops through to net profit.
- Pays a 5.2% dividend while you wait.
The case against
- Growth is weak (33/100): EPS +16.7%, +4.6% a year over five years.
- Weakest against its peers: return on equity of 13% is lower than 64% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 72 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 33 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 54 |
| Momentumhow the price has behaved lately | 63 |
| Stabilityhow violently it moves, what it owes and what it pays you | 60 |
- Its one-year revenue change (+84%) is far out of line with its five-year trend (+5% a year). In the Financials sector that is usually interest income swinging with rates rather than growth, so only the five-year figure is used.
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +84.1%* |
|---|---|
| Over 5 years | +4.6% a year |
| FY2025 revenue | $28.7B (+4%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? Yes, improving
| Gross margin | n/a |
|---|---|
| Operating margin | 25% |
| Net margin, FY24 → FY25 | 22.9% → 26.4% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $46.9B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 11.3× |
|---|---|
| Fair P/E for its growth | 25× |
| Price / book | 1.35× |
| Fair P/B for its ROE | 1.3× |
| Forward P/E | 10.3× |
At 11.3× earnings it trades well below the 25× that 6% a year of growth plus a 5.2% dividend would justify. At 1.35× book it trades close to the 1.3× that its 13% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from U.S. Bancorp's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $28.7B | $27.5B | $28.1B | $24.3B | $22.7B |
| Change on the year | +4% | −2% | +16% | +7% | — |
| Profit margins | |||||
| Net margin | 26.4% | 22.9% | 19.3% | 24.0% | 35.0% |
| Debt vs. cash | |||||
| Cash | $46.9B | $56.5B | $61.2B | $53.5B | $28.9B |
| Long-term debt | — | — | — | $39.8B | $32.1B |
| Net cash (debt) | — | — | — | $13.7B | −$3.2B |
What U.S. Bancorp says it does
Forward-Looking Statements The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This report contains forward-looking statements about U.S. Bancorp (“U.S. Bancorp” or the “Company”). Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects, targets, initiatives and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue”…
Risk factors USB lists in its 10-K
- Compensation, Health & Wellness Programs
- Regulatory Approval for Acquisitions
- Comprehensive Capital Analysis and Review
- Anti-Money Laundering and Sanctions
- Regulation of Brokerage, Investment Advisory and Insurance Activities
- Regulation of Derivatives and the Swaps Marketplace
- Executive and Incentive Compensation
- Environmental, Social and Sustainability
- Capital Securities, Preferred Stock or Exchangeable Preferred Stock
- (a) USB Realty Corp. is a subsidiary of USBNA