Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
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, notable return on equity, expanding profit margins, good cash flow from operations and increase in net income. 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 7.0% 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 ($3.01 versus $2.84).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market, U S BANCORP's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for U S BANCORP is currently very high, coming in at 85.25%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.92% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 802.79% to $4,848.00 million when compared to the same quarter last year. In addition, U S BANCORP has also vastly surpassed the industry average cash flow growth rate of 104.86%.
- The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 4.9% when compared to the same quarter one year prior, going from $1,415.00 million to $1,484.00 million.
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 $68.8 billion and is part of the financial sector and banking industry. Shares are up 16.8% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.