Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
-- U.S. Bancorp
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, expanding profit margins, increase in net income, attractive valuation levels and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- U S BANCORP has improved earnings per share by 8.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, U S BANCORP increased its bottom line by earning $2.84 versus $2.45 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.84).
- The gross profit margin for U S BANCORP is currently very high, coming in at 83.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.06% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 6.7% when compared to the same quarter one year prior, going from $1,338.00 million to $1,428.00 million.
- USB, with its decline in revenue, slightly underperformed the industry average of 1.6%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
U.S. Bancorp, a financial services holding company, provides a range of financial services in the United States. Its services include lending and depository services, cash management, capital market, and trust and investment management services. U.S has a market cap of $60.6 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 11.00, below the S&P 500 P/E ratio of 18.00. Shares are up 1.7% year to date as of the close of trading on Monday.
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--Written by a member of TheStreet Ratings Staff.
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