US Bancorp Beneish M Score

USB
 Stock
  

USD 46.59  0.57  1.24%   

This module uses fundamental data of US Bancorp to approximate the value of its Beneish M Score. US Bancorp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Also, please take a look at US Bancorp Piotroski F Score and US Bancorp Altman Z Score analysis.
  
Refresh
US Bancorp Total Debt is projected to decrease significantly based on the last few years of reporting. The past year's Total Debt was at 42.56 Billion. The current year Debt to Equity Ratio is expected to grow to 0.62, whereas Long Term Debt is forecasted to decline to about 26.5 B. US Bancorp Calculated Tax Rate is projected to drop based on the last few years of reporting. The past year's Calculated Tax Rate was at 21.45. The current year PPandE Turnover is expected to grow to 8.62, whereas Cash Flow Per Share is forecasted to decline to 5.34.
At this time, it appears that US Bancorp is an unlikely manipulator. The earnings manipulation may begin if US Bancorp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by US Bancorp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of US Bancorp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.9
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage0.9Focus
Gross Margin Strengs0.99Focus
Accruals Factor0.9Focus
Depreciation Resistance0.82Focus
Net Sales Growth0.94Focus
Financial Leverage Condition1.02Focus

US Bancorp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if US Bancorp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues22.2 B23.7 B
Notably Down
Increasing
Slightly volatile
Selling General and Administrative Expense7.2 B8.6 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations9.5 B9.9 B
Sufficiently Down
Decreasing
Very volatile
Depreciation Amortization and Accretion652 M540.5 M
Fairly Up
Decreasing
Slightly volatile
Total Assets483.8 B573.3 B
Fairly Down
Increasing
Slightly volatile
Investments284.1 B345.1 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net2.1 B2.2 B
Notably Down
Decreasing
Stable
Total Liabilities435.9 B518.4 B
Fairly Down
Increasing
Slightly volatile
Total Debt46.2 B42.6 B
Significantly Up
Decreasing
Slightly volatile
Operating Income6.4 B7.3 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

US Bancorp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between US Bancorp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards US Bancorp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find US Bancorp's degree of accounting gimmicks and manipulations.

About US Bancorp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

8.98 Billion

Share
US Bancorp Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 10.51 Billion

US Bancorp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as US Bancorp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues24 B25.77 B27.32 B25.24 B23.71 B22.2 B
Total Assets462.04 B467.37 B495.43 B553.9 B573.28 B483.77 B
Total Liabilities413 B416.35 B443.57 B500.81 B518.37 B435.9 B
Net Cash Flow from Operations6.47 B10.56 B4.89 B3.72 B9.87 B9.51 B

About US Bancorp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze US Bancorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of US Bancorp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of US Bancorp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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 was founded in 1863 and is headquartered in Minneapolis, Minnesota. US Bancorp operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 70000 people.

US Bancorp Investors Sentiment

The influence of US Bancorp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in US Bancorp. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

US Bancorp Implied Volatility

    
  14.0  
US Bancorp's implied volatility exposes the market's sentiment of US Bancorp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if US Bancorp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that US Bancorp stock will not fluctuate a lot when US Bancorp's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards US Bancorp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, US Bancorp's short interest history, or implied volatility extrapolated from US Bancorp options trading.

Current Sentiment - USB

US Bancorp Investor Sentiment

Predominant part of Macroaxis users are at this time bullish on US Bancorp. What is your outlook on investing in US Bancorp? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Also, please take a look at US Bancorp Piotroski F Score and US Bancorp Altman Z Score analysis. Note that the US Bancorp information on this page should be used as a complementary analysis to other US Bancorp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try CEO Directory module to screen CEOs from public companies around the world.

Complementary Tools for US Bancorp Stock analysis

When running US Bancorp price analysis, check to measure US Bancorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy US Bancorp is operating at the current time. Most of US Bancorp's value examination focuses on studying past and present price action to predict the probability of US Bancorp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move US Bancorp's price. Additionally, you may evaluate how the addition of US Bancorp to your portfolios can decrease your overall portfolio volatility.
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Is US Bancorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of US Bancorp. If investors know US Bancorp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about US Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.32
Market Capitalization
68.4 B
Quarterly Revenue Growth YOY
-0.13
Return On Assets
0.0127
Return On Equity
0.14
The market value of US Bancorp is measured differently than its book value, which is the value of US Bancorp that is recorded on the company's balance sheet. Investors also form their own opinion of US Bancorp's value that differs from its market value or its book value, called intrinsic value, which is US Bancorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because US Bancorp's market value can be influenced by many factors that don't directly affect US Bancorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between US Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine US Bancorp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, US Bancorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.