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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 57.7GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.1%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.18%
Trailing Yield
$4.18
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
48%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, US BANCORP \DE\ (USB) receives a "Hold" rating with a composite score of 55.7/100, ranked #914 out of 4446 stocks. Key factor scores: Quality 58/100, Value 74/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
US BANCORP \DE\ (USB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does US BANCORP \DE\ Do?
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. US BANCORP \DE\ (USB) is classified as a large-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Andrew J. Cecere and employs approximately 78,200 people, headquartered in Minneapolis, Minnesota. With a market capitalization of $81.9B, USB is one of the prominent companies in the Financials sector.
US BANCORP \DE\ (USB) Stock Rating — Hold (April 2026)
As of April 2026, US BANCORP \DE\ receives a Hold rating with a composite score of 55.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.USB ranks #914 out of 4,446 stocks in our coverage universe. Within the Financials sector, US BANCORP \DE\ ranks #279 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
USB Stock Price and 52-Week Range
US BANCORP \DE\ (USB) currently trades at $55.94. The stock lost $0.39 (0.7%) in the most recent trading session. The 52-week high for USB is $61.19, which means the stock is currently trading -8.6% from its annual peak. The 52-week low is $35.18, putting the stock 59.0% above its annual trough. Recent trading volume was 1.7M shares, reflecting moderate market activity.
Is USB Overvalued or Undervalued? — Valuation Analysis
US BANCORP \DE\ (USB) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.47x, compared to the Financials sector average of 14.88x — a discount of 23%. The price-to-book ratio stands at 1.27x, versus the sector average of 1.22x. The price-to-sales ratio is 2.96x, compared to 0.90x for the average Financials stock. On an enterprise value basis, USB trades at 9.20x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, US BANCORP \DE\ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
US BANCORP \DE\ Profitability — ROE, Margins, and Quality Score
US BANCORP \DE\ (USB) earns a quality factor score of 58/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.1%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, US BANCORP \DE\ reports gross margins of 0.0%. The operating margin is 32.1% (sector: 21.8%). Net profit margin stands at 25.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 6.7% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
USB Debt, Balance Sheet, and Financial Health
US BANCORP \DE\ has a debt-to-equity ratio of 955.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.10x, suggesting adequate working capital coverage. Total debt on the balance sheet is $77.98B. Cash and equivalents stand at $66.64B.
USB has a beta of 0.99, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for US BANCORP \DE\ is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
US BANCORP \DE\ Revenue and Earnings History — Quarterly Trend
In TTM 2026, US BANCORP \DE\ reported revenue of $28.16B and earnings per share (EPS) of $4.62. Net income for the quarter was $7.27B. Gross margin was 0.0%. Operating income came in at $9.06B.
In FY 2025, US BANCORP \DE\ reported revenue of $28.66B and earnings per share (EPS) of $4.62. Net income for the quarter was $7.60B. Revenue grew 4.4% year-over-year compared to FY 2024. Operating income came in at $9.52B.
In Q3 2025, US BANCORP \DE\ reported revenue of $7.33B and earnings per share (EPS) of $1.22. Net income for the quarter was $2.01B. Revenue grew 6.8% year-over-year compared to Q3 2024. Operating income came in at $2.53B.
In Q2 2025, US BANCORP \DE\ reported revenue of $7.00B and earnings per share (EPS) of $1.11. Net income for the quarter was $1.82B. Revenue grew 2.0% year-over-year compared to Q2 2024. Operating income came in at $2.29B.
Over the past 8 quarters, US BANCORP \DE\ has demonstrated a growth trajectory, with revenue expanding from $6.87B to $28.16B. Investors analyzing USB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
USB Dividend Yield and Income Analysis
US BANCORP \DE\ (USB) currently pays a dividend yield of 4.2%. At this yield, a $10,000 investment in USB stock would generate approximately $$418.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning USB offers above-average income for its sector. With a net margin of 25.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
USB Momentum and Technical Analysis Profile
US BANCORP \DE\ (USB) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
USB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing USB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full USB vs S&P 500 (SPY) comparison to assess how US BANCORP \DE\ stacks up against the broader market across all factor dimensions.
USB Next Earnings Date
No upcoming earnings date has been announced for US BANCORP \DE\ (USB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy USB? — Investment Thesis Summary
US BANCORP \DE\ presents a balanced picture with arguments on both sides. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, US BANCORP \DE\ (USB) earns a Hold rating with a composite score of 55.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on USB stock.
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Institutional Research Dossier
US BANCORP \DE\ (USB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on U.S. Bancorp (USB). While the bank exhibits strong profitability metrics and trades at a discount to its peers based on P/E and EV/EBITDA, its relatively weak investment score, driven by lower growth prospects and capital allocation concerns, coupled with a high debt-to-equity ratio, tempers our enthusiasm. The bank's future performance hinges on its ability to navigate the evolving interest rate environment and effectively deploy capital to enhance shareholder value.
USB's strength lies in its operational efficiency and superior margins compared to the sector, but its growth trajectory lags behind. The current valuation reflects this mixed picture, offering limited upside potential given the inherent risks and uncertainties in the banking sector. Investors should closely monitor the bank's ability to improve its growth profile and manage its capital structure effectively before considering a more bullish stance.
Business Strategy & Overview
U.S. Bancorp operates as a diversified financial services holding company, providing a comprehensive suite of banking and related services across the United States. Its primary revenue streams are derived from net interest income (NII), generated from lending activities, and non-interest income, encompassing service charges, card fees, wealth management, and payment processing. The company's strategic focus is centered on organic growth within its existing footprint, primarily in the Midwest and West regions, while also selectively pursuing strategic acquisitions to expand its market presence and product offerings.
The bank's operational structure is segmented into Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support. This diversified approach allows U.S. Bancorp to cater to a wide range of customer needs, from individual consumers to large corporations. The company's emphasis on technology and digital banking solutions is aimed at enhancing customer experience and improving operational efficiency. U.S. Bancorp has invested heavily in its digital platforms to attract and retain customers in an increasingly competitive landscape.
U.S. Bancorp's strategic positioning within the banking industry is characterized by its focus on relationship banking and customer service. The company aims to differentiate itself through personalized service and tailored financial solutions. This approach is particularly evident in its wealth management and commercial banking segments, where building long-term relationships with clients is paramount. The bank's extensive branch network, complemented by its digital channels, provides a multi-faceted approach to customer engagement.
The competitive landscape for U.S. Bancorp is intense, with competition from large national banks, regional banks, credit unions, and fintech companies. The bank faces pressure on interest rates, fees, and service offerings. To maintain its competitive edge, U.S. Bancorp must continue to innovate and adapt to changing customer preferences and technological advancements. The company's ability to effectively manage its risk profile and maintain strong regulatory compliance is also crucial for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
6.7%
Sector: 9.4%
-28% VS SCTR
Economic Moat Analysis
U.S. Bancorp possesses a narrow economic moat, primarily derived from switching costs and, to a lesser extent, intangible assets. The switching costs arise from the established relationships and integrated services that the bank provides to its customers, particularly in the commercial banking and wealth management segments. Businesses and high-net-worth individuals often find it costly and disruptive to switch banks due to the complexity of transferring accounts, loans, and other financial services. This creates a degree of customer stickiness that benefits U.S. Bancorp.
The bank's brand reputation and established presence in its core markets also contribute to its intangible assets. U.S. Bancorp has cultivated a reputation for stability and reliability, which is particularly important in the banking industry. This reputation helps the bank attract and retain customers, especially during times of economic uncertainty. However, the strength of this intangible asset is limited by the increasing competition from fintech companies and the commoditization of many banking services.
While U.S. Bancorp benefits from some economies of scale, particularly in its payment processing and technology infrastructure, these advantages are not significant enough to create a wide moat. The banking industry is characterized by intense competition and regulatory oversight, which limits the ability of any single player to achieve a dominant market position. Furthermore, the rise of online banking and mobile payment solutions has reduced the importance of physical branch networks, diminishing the scale advantages of traditional banks.
The narrow moat is under pressure from several factors. Fintech companies are disrupting the banking industry by offering innovative and cost-effective financial services. These companies often target specific segments of the market, such as payments or lending, and can quickly gain market share by leveraging technology and data analytics. Additionally, the increasing regulatory burden on banks can erode their profitability and competitive advantage. U.S. Bancorp must continue to invest in technology and innovation to defend its moat and maintain its competitive position.
Financial Health & Profitability
U.S. Bancorp demonstrates solid financial health, characterized by strong profitability metrics and a stable revenue stream. The company's net income for FY2025 was $7.60 billion on revenue of $28.66 billion, translating to a net margin of 25.8%, significantly higher than the sector average of 17.8%. This superior profitability is a testament to the bank's operational efficiency and effective cost management. The operating margin of 32.1% also exceeds the sector average of 22.0%, further highlighting the bank's ability to generate profits from its core operations.
However, the company's revenue growth of 6.7% lags behind the sector average of 9.3%, indicating a potential weakness in its ability to expand its business. While the bank has consistently generated positive net income over the past few years, its growth rate has been relatively modest. The quarterly financial history reveals a steady increase in revenue and net income from FY2023 to FY2025, but the pace of growth has been uneven. The bank's ability to accelerate its revenue growth will be crucial for its long-term success.
U.S. Bancorp's balance sheet exhibits a high level of leverage, with a debt-to-equity ratio of 955.00, significantly higher than the sector average of 115.00. This high leverage poses a potential risk to the company's financial stability, particularly in a rising interest rate environment. While the bank has a substantial amount of cash on hand ($66.64 billion), its total debt is also considerable ($77.98 billion). The company's ability to manage its debt effectively will be critical for maintaining its financial health.
The company's return on equity (ROE) of 11.1% is higher than the sector average of 8.5%, indicating that U.S. Bancorp is effectively utilizing its equity to generate profits. However, the company's free cash flow is negative (-$1.91 billion), which is a cause for concern. This negative free cash flow suggests that the bank is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. The company needs to improve its cash flow generation to ensure its long-term financial sustainability.
Valuation Assessment
U.S. Bancorp's valuation appears attractive relative to its peers based on several key metrics. The company's price-to-earnings (P/E) ratio of 11.1x is lower than the sector average of 15.5x, suggesting that the stock is undervalued compared to its earnings potential. Similarly, the company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.1x is significantly lower than the sector average of 3.5x, further indicating that the stock is undervalued based on its operating performance.
However, the valuation must be considered in the context of the company's growth prospects and risk profile. While the stock may appear cheap based on current earnings and EBITDA, its relatively slow revenue growth and high leverage could justify a lower valuation multiple. The market may be discounting the stock due to concerns about the company's ability to generate sustainable growth and manage its debt effectively.
The company's free cash flow yield is negative due to its negative free cash flow, which is a cause for concern. A positive free cash flow yield would typically indicate that the company is generating ample cash to cover its capital expenditures and other cash outflows, and that the stock is undervalued based on its cash flow generation. The negative free cash flow yield suggests that the stock may be overvalued based on its cash flow potential.
Overall, U.S. Bancorp's valuation appears to be fair, reflecting a balance between its strong profitability metrics and its relatively weak growth prospects and high leverage. The stock is not significantly undervalued or overvalued, but rather trades at a reasonable multiple given its financial characteristics. Investors should closely monitor the company's ability to improve its growth profile and manage its capital structure effectively before considering a more bullish stance.
Risk & Uncertainty
U.S. Bancorp faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is the potential for increased regulatory scrutiny and compliance costs. The banking industry is heavily regulated, and changes in regulations could require the company to invest in new systems and processes, which could increase its operating expenses and reduce its profitability. Furthermore, regulatory actions could limit the company's ability to engage in certain activities, such as acquisitions or new product offerings.
Another key risk is the potential for increased competition from fintech companies and other non-traditional financial service providers. These companies are disrupting the banking industry by offering innovative and cost-effective financial services, and they could erode U.S. Bancorp's market share and profitability. The company must continue to invest in technology and innovation to compete effectively with these new entrants.
Credit risk is also a significant concern for U.S. Bancorp. The company's lending activities expose it to the risk of borrowers defaulting on their loans, which could result in losses. The company must carefully manage its credit risk by implementing sound underwriting standards and monitoring its loan portfolio closely. Economic downturns could increase the risk of loan defaults and negatively impact the company's financial performance.
Interest rate risk is another important consideration. Changes in interest rates could affect the company's net interest income and profitability. A rising interest rate environment could increase the company's funding costs and reduce its net interest margin. The company must effectively manage its interest rate risk by hedging its exposure and adjusting its asset and liability mix.
Bulls Say / Bears Say
The Bull Case
BULL VIEWU.S. Bancorp's superior operating efficiency and higher margins compared to peers justify a premium valuation, as the bank consistently demonstrates its ability to generate strong profits.
BULL VIEWThe bank's focus on relationship banking and customer service creates a loyal customer base and provides a competitive advantage in an increasingly commoditized industry.
The Bear Case
BEAR VIEWU.S. Bancorp's high debt-to-equity ratio poses a significant risk, especially in a rising interest rate environment, potentially limiting its financial flexibility and growth prospects.
BEAR VIEWThe bank's relatively slow revenue growth compared to the sector suggests a lack of innovation and an inability to capture market share in a rapidly evolving financial landscape.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score USB and 4,400+ other equities.
US BANCORP \DE\ exhibits a 98% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
32.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
25.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+69%
Income Projection audit
A $10,000 investment would generate approximately $418 annually in dividends at the current trailing rate.
