It's been a great morning session for U.S. Bancorp investors, who saw their shares rise 2.1% to a price of $35.88 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
U.S. Bancorp Has Attractive Multiples and Trades Below Its Graham Number:
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. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, U.S. Bancorp has a trailing 12 month P/E ratio of 10.0 and a P/B ratio of 1.19.
U.S. Bancorp's PEG ratio is 1.32, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2018-02-22 | 2019-02-22 | 2020-02-20 | 2021-02-23 | 2022-02-22 | 2023-02-27 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $21,697 | $22,521 | $22,883 | $23,226 | $22,721 | $24,184 |
| Operating Margins | 35% | 39% | 38% | 26% | 45% | 30% |
| Net Margins | 28% | 32% | 30% | 21% | 35% | 24% |
| Net Income (MM) | $6,218 | $7,096 | $6,914 | $4,959 | $7,963 | $5,825 |
| Earnings Per Share | $3.51 | $4.14 | $4.16 | $3.28 | $5.28 | $3.86 |
| EPS Growth | n/a | 17.95% | 0.48% | -21.15% | 60.98% | -26.89% |
| Diluted Shares (MM) | 1,683 | 1,638 | 1,583 | 1,510 | 1,509 | 1,510 |
| Long Term Debt (MM) | $32,259 | $41,340 | $40,167 | $41,297 | $32,125 | $39,829 |
