CAPITAL ONE FINANCIAL CORP (COF)
US14040H1059 - Common Stock
COF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 52 industry peers in the Consumer Finance industry. Both the profitability and financial health of COF have multiple concerns. COF is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
COF had positive earnings in the past year.
In the past year COF had a positive cash flow from operations.
COF had positive earnings in each of the past 5 years.
Each year in the past 5 years COF had a positive operating cash flow.
1.2 Ratios
COF has a Return On Assets (0.84%) which is in line with its industry peers.
The Return On Equity of COF (6.46%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 6.46% | ||
| ROIC | N/A |
ROA(3y)1.76%
ROA(5y)1.43%
ROE(3y)13.63%
ROE(5y)10.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 10.57%, COF is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
COF's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for COF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 10.57% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y14.37%
PM growth 5Y-9.34%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
COF does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, COF has less shares outstanding
The number of shares outstanding for COF has been reduced compared to 5 years ago.
The debt/assets ratio for COF has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of COF is 2.27, which is a good value as it means it would take COF, 2.27 years of fcf income to pay off all of its debts.
COF has a better Debt to FCF ratio (2.27) than 78.85% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that COF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, COF is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.09%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
COF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been growing slightly by 3.31% on average over the past years.
COF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.80%.
COF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)0%
EPS 3Y34.9%
EPS 5Y3.31%
EPS Q2Q%1.35%
Revenue 1Y (TTM)5.8%
Revenue growth 3Y8.85%
Revenue growth 5Y5.55%
Sales Q2Q%6.92%
3.2 Future
COF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.72% yearly.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y9.85%
EPS Next 2Y12.41%
EPS Next 3Y13.53%
EPS Next 5Y6.72%
Revenue Next Year6.34%
Revenue Next 2Y5.72%
Revenue Next 3Y5.67%
Revenue Next 5Y3.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.28, COF is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as COF.
The average S&P500 Price/Earnings ratio is at 29.29. COF is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.82, the valuation of COF can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COF is on the same level as its industry peers.
COF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
65.38% of the companies in the same industry are more expensive than COF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
COF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as COF's earnings are expected to grow with 13.53% in the coming years.
PEG (NY)1.45
PEG (5Y)4.32
EPS Next 2Y12.41%
EPS Next 3Y13.53%
5. Dividend
5.1 Amount
COF has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 4.12, COF has a dividend in line with its industry peers.
With a Dividend Yield of 1.31, COF pays less dividend than the S&P500 average, which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of COF grows each year by 6.94%, which is quite nice.
COF has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of COF decreased recently.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
28.58% of the earnings are spent on dividend by COF. This is a low number and sustainable payout ratio.
COF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.58%
EPS Next 2Y12.41%
EPS Next 3Y13.53%
CAPITAL ONE FINANCIAL CORP
NYSE:COF (11/22/2024, 8:04:00 PM)
After market: 187.06 0 (0%)187.06
+4.42 (+2.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap71.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 11.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.45
PEG (5Y)4.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 6.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 10.57% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y34.9%
EPS 5Y
EPS Q2Q%
EPS Next Y9.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.8%
Revenue growth 3Y8.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y