Money talks, and when it comes to US Bancorp, the conversation is all about whether this financial powerhouse is rewarding its investors. As a key player in the regional banking sector, US Bancorp boasts a robust total revenue of $28 billion, underscoring its significant presence in the financial services landscape. With a current valuation of $86.18 billion, the company stands as a formidable entity in the market. Despite the competitive nature of the industry, US Bancorp's forward dividend rate of $2 indicates a commitment to returning value to its shareholders. Additionally, the bank's cash flow from operations, amounting to $8.45 billion, highlights its capacity to generate substantial liquidity, a crucial factor for sustaining operations and growth. However, investors should also consider the broader picture, including the company's liabilities, which total $607.7 billion, to fully assess its financial health and potential for delivering strong returns. US Bancorp's market capitalization is anticipated to rise significantly, reflecting recent performance trends. This year, the dividend yield is expected to increase to 0.05, while the enterprise value might decrease to around $12.6 billion. It's not uncommon for stock prices to fluctuate following major shifts in key indicators. In this brief overview, we'll explore some of US Bancorp's fundamental aspects and discuss why investors might still find the company appealing. Notably, the company's current risk of financial distress is below 3%. The question remains: will investor confidence persist, or are we on the brink of a sell-off?
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include US Bancorp income statement, its balance sheet, and the statement of cash flows. Potential US Bancorp investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although US Bancorp investors may use each financial statement separately, they are all related. The changes in US Bancorp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on US Bancorp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of US Bancorp
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of US Bancorp performance into the future periods or doing a reasonable stock valuation. The intrinsic value of US Bancorp shares is the value that is considered the true value of the share. If
the intrinsic value of USB is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares US Bancorp. Please read more on our
fundamental analysis page.
How effective is US Bancorp in utilizing its assets?
US Bancorp reports assets on its Balance Sheet. It represents the amount of USB resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, US Bancorp aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Diversified Banks space. To get a better handle on how balance sheet or income statements item affect USB volatility, please check the breakdown of all its
fundamentals.
Are US Bancorp Earnings Expected to grow?
The
future earnings power of US Bancorp involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of US Bancorp factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. US Bancorp
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of USB
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of US Bancorp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. US Bancorp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. USB one year expected dividend income is about USD1.3 per share.
The current year's
Dividend Yield is expected to grow to 0.05, whereas
Dividends Paid is projected to grow to (3.1
B).
Investing in dividend-paying stocks, such as US Bancorp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in US Bancorp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for US Bancorp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
US Bancorp Gross Profit
US Bancorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing US Bancorp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show US Bancorp Gross Profit growth over the last 10 years. Please check US Bancorp's
gross profit and other
fundamental indicators for more details.
Another Deeper Perspective
Institutional investor usually refers to an organization that invests money in US Bancorp on behalf of clients or other money managers. Buying and selling of large positions of US Bancorp stock by institutional investors can create supply and demand imbalances that result in sudden price moves of US Bancorp stock. Let's take a look at how the ownership of USB is distributed among investors.
Ownership Allocation
US Bancorp secures a total of 1.56 Billion
outstanding shares. The majority of US Bancorp
outstanding shares are owned by
institutions. These other corporate entities are usually referred to as non-private investors looking to take positions in US Bancorp to benefit from reduced commissions. Therefore, outside corporations are subject to a different set of regulations than regular investors in US Bancorp. Please pay attention to any change in the institutional holdings of US Bancorp as this could imply that something significant has changed or is about to change at the company. Please note that on June 14, 2024, Representative
Mike Kelly of US Congress acquired under $15k worth of US Bancorp's common stock.
| Retail Investors20.62% | | Institutions79.29% |
| Retail Investors | 20.62 |
| Insiders | 0.1 |
| Institutions | 79.28 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence US Bancorp's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over US Bancorp's decisions due to their larger holdings.
Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of USB suggests not a very effective usage of assets in October.
| Non Current Assets Total184.4 B | | Other Assets366.4 B | | | | | |
| Non Current Assets Total | 184.39 Billion | 22.8 |
| Non Currrent Assets Other | (166.83 Billion) | -20.63 |
| Other Assets | 366.36 Billion | 45.3 |
| Total Current Assets | 145.92 Billion | 18.04 |
| Other Current Assets | 100.55 Billion | 12.43 |
| Intangible Assets | 3.82 Billion | 0.47 |
| Net Tangible Assets | 31.25 Billion | 3.86 |
| Earning Assets | 143.27 Billion | 17.72 |
Warren Buffett once said that price is what you pay, value is what you get. This sentiment rings true for US Bancorp (NYSE: USB), which has been striving to offer solid returns to its investors. With a Price to Earnings ratio of 10.64x, the stock appears reasonably valued, especially when considering its steady earnings per share of 3.15. Despite facing a probability of bankruptcy at 45.25%, the bank's strong fundamentals, such as a net income from continuing operations of 5.5 billion and a forward dividend yield of 4.24%, suggest a resilience that could appeal to long-term investors. As the bank navigates the complexities of the regional banking sector, its ability to maintain a profit margin of 0.21% and generate a free cash flow of 14.5 billion underscores its potential to deliver value over time.
US Bancorp has 88 percent chance to finish below $46 next week
US Bancorp's stock is currently navigating a tough period, with projections indicating a potential dip to -1.36. This figure points to increased downside risk, with an 88% chance of the stock falling below $46 in the next week. Investors should tread carefully, as market sentiment suggests the possibility of further declines. As of October 16, 2024, US Bancorp has a Risk Adjusted Performance of 0.1035, a downside deviation of 1.55, and a mean deviation of 1.24. For those interested in the company's fundamentals, the technical analysis model offers insights into potential technical drivers and their interconnections.Considering the current landscape for US Bancorp, the stock presents a compelling opportunity for investors looking to capitalize on its potential rebound.
With an analyst consensus rating of "Buy" and a target price estimated at $40.99, there is a promising upside from its current levels. The stock's valuation, with a real value pegged at $43.17, suggests that it may be undervalued, offering room for growth. Furthermore, the company's EPS estimate for next year stands at 4.27, indicating strong earnings potential. While there are 12 analysts recommending a "Hold," the presence of 7 strong buy ratings underscores confidence in the stock's future performance. As US Bancorp navigates its challenges, investors might find this an opportune moment to consider adding USB to their portfolios, especially if they believe in the bank's ability to regain its footing and drive shareholder value..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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