By Rob Otman
US Bancorp stock had a down day in the market on Tuesday February 27. Shares dropped -1.49% and closed the day at $55.01. They’re now trading 5.97% below their 52-week high of $58.5.
With yesterday’s drop, US Bancorp now has a market cap of $91 billion. That makes it a large cap company.
The business operates in the banking industry and employs 72,402 people. Its shares trade primarily on the New York stock exchange.
US Bancorp has 1.66 billion shares outstanding and 5.14 million traded hands for the day. That’s below the average 30-day volume of 7.78 million shares. The amount of US Bancorp stock is also dropping as the company buys back its own shares. In the last 12 months, it repurchased $2,641 million worth.
Over the last five years, US Bancorp’s revenue is up by 8.08%. You can see this growth in annual revenue chart below…
In the last year alone, US Bancorp’s revenue has grown by 5.5%. That’s a solid sign for US Bancorp stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, US Bancorp will continue to pull in revenue. So let’s take a closer look at the company’s total financial health. And the best way to do that is by looking at its balance sheet… US Bancorp’s cash comes in at $20 billion and the company’s debt is $49 billion…
US Bancorp’s cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects.
What is US Bancorp Stock Worth?
Let’s look at a few key ratios to determine the value of US Bancorp stock…
Price-to-Earnings (P/E): This is one of the most widely used metrics and it comes in at 16.04. That’s a reasonable level and generally, the lower the better. Investors will bid up stock prices and in turn, P/E ratios, when they expect future earnings to grow.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 2.1, US Bancorp looks reasonable… but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company… but your analysis should go much deeper…
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Source:: Investment You
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